A row has broken out over a proposed beachfront restaurant in the luxury holiday enclave of Hermanus.
Conservationists are fighting the proposal to build a Cape Town Fish Market (CTFM) restaurant on the site of an eatery that burnt down 30 years ago at picturesque Grotto Beach, claiming it threatens a sensitive coastal ecosystem bordering a protected nature reserve.
Grotto Beach is one of South Africa’s most popular Blue Flag beaches, about a 90-minute drive from Cape Town. The largest beach in the area, it is renowned for its sweeping stretch of soft white sand, rolling waves and dramatic mountain backdrop.
The beach is on Walker Bay, a protected whale sanctuary that makes it one of the best land-based whale-watching destinations in the country
The village’s natural, unspoilt beauty has made it a high-demand destination, with some homes listed for over R100m. Infamous Steinhoff CEO Markus Jooste had a mansion in the town — and committed suicide on its coastal footpath.
Whale Coast Conservation (WCC), an environmental nonprofit organisation, has expressed alarm at the Overstrand municipality’s approval of a large restaurant on an environmentally sensitive stretch of beachfront.
The development of this area should be discouraged because of the hazards posed by noise and light pollution, as well as increased traffic, to the fauna and flora of the reserve
— Pat Miller, Whale Coast Conservation chair
The site was first used for a restaurant in the 1940s when the Goldfish Café was built. The name changed to Driftwood Den and then Nautilus, in which guise it burnt down in the 1990s. It is adjacent to the southernmost edge of the Fernkloof Nature Reserve, a protected area known for its rich biodiversity.
WCC chair Pat Miller said the site had historically been used only for seasonal and temporary light meals and sundowner offerings. He argued that permanent infrastructure posed significant risks to the surrounding ecosystem.
“The development of this area should be discouraged because of the hazards posed by noise and light pollution, as well as increased traffic, to the fauna and flora of the reserve,” Miller said.
The organisation also questioned whether environmental risks had been properly assessed. The site falls within overlapping environmental management overlay zones, including coastal protection and protected area buffer zones.
Municipal spokesperson Riana Steenkamp said CTFM had been awarded a 25-year lease. The municipality had conducted an extensive environmental study and obtained the necessary environmental authorisation, she said. Following a competitive bidding process, the council approved the lease in December 2024 at an initial rental of R80,000 a month, with annual escalations.
However, the project has faced legal hurdles. In May 2025, third-party litigation challenged the site’s zoning, arguing that building plan approvals were unlawful and that no construction should proceed without proper zoning. As a result, the developer agreed to apply for a consent-use permit, a process that is still under way.
Due to the delays, the municipality shifted the lease’s effective date to last month, April. Rental payments are due to commence when the restaurant becomes operational, which is estimated to be in 2028.
But WCC argues that the environmental authorisation underpinning the development is outdated. Originally granted in 2015, it has been extended multiple times, most recently in July last year, without what the organisation describes as a thorough reassessment of environmental impacts or meaningful public participation.
Miller said significant environmental changes in the Hermanus area, including coastal dynamics and climate-related impacts, had not been adequately factored into the plans. “The high-water mark has not been scientifically reassessed since the original environmental impact assessment,” he said.
WCC further warned that inadequate provision of basic services such as water, electricity and sewage could result in pollution of nearby estuarine systems, placing additional strain on already vulnerable ecosystems.
Considering that the appeal process is under way, the municipality cannot provide additional information regarding the application
— Riana Steenkamp, municipal spokesperson
The organisation has called for a fresh environmental impact assessment that includes updated climate modelling and public participation.
Steenkamp said the restaurant forms part of a broader environmental approval granted last year, which included rehabilitation of the surrounding area known as Piet se Bos.
That decision is now under appeal. “Considering that the appeal process is under way, the municipality cannot provide additional information regarding the application,” Steenkamp said.
WCC has recommended that the consent-use application be rejected. Instead, it wants the site to be rehabilitated, with remnants of the long-defunct Nautilus restaurant removed and the area restored to its natural state.
CTFM had not responded to questions at the time of going to print.
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