Eidyn Architects withdrew its proposal to turn the building housing the Forest into ten HMO bedsits and three private flats after over 150 complaints were received in just 15 days.
Forest Cafe campaigners had publicised the planning application on their blog, and called for their supporters to file formal complaints with the council's planning department, and to contact local councillors and the architects to protest.
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Hide AdForest Cafe co-founder Chris Palmer said: "It's really great that this application has been withdrawn. It's overwhelming to see the number of supporters who have gotten involved. This sends a clear message that this isn't a development opportunity, this is a community space, as it has been for the past 100 years."
Mr Palmer said he was confident it was the pressure exerted that led to the proposals being dropped.