The co-owner of a cafe which "inadvertently became a late bar" has told councillors in Falmouth he only applied for a 3am licence in order to bargain with licensing officers.

Kirran Bruce has been running Chintz Bar in Brewery Yard, Falmouth, since April, and along with co-owners Franciska Earl and Duncan Bruce had applied for a later licence because their original plans for a mainly-daytime cafe had changed as most of their custom now comes in the last few hours of the evening.

At a meeting of Falmouth Town Council's licensing committee, Mr Bruce said he thought he was "being clever" applying to open until 3am when he only wanted to serve until 1am, as he thought Cornwall Council officers would knock him back to the earlier time during the application process. However, he had since been told he would just be refused, and would have to reapply for the later licence.

In the application, Ms Earl wrote that the applicants had originally planned to create "a day time cafe with a licence to serve alcohol for various cultural events," and to "do something different and bring something new and exciting to an already buzzing Falmouth."

However, she added: "We are starting to struggle as 90 per cent of our custom is from 9pm to 11.30pm, so practically all of our trade is in those last two and a half hours... we have inadvertently become a late night bar."

She added that due to the word of mouth success of the bar and it's hidden location, attempts to bring in a more daytime crowd had had limited success.

But Peter Flutter, who live next door to the bar and also spoke on behalf of residents of Harbour Terrace above Brewery Yard, said the proposed cut-off time was "completely unnecessary."

He said he was "very pleased" that the Brewery Yard was successful, but there were cooking smells and an increase in noise since the new bar had opened.

Asked about a 1am closing time, he said he would oppose "any increase in the late night opening beyond what is regarded as the norm in Falmouth."

Mr Bruce replied that there was no cooking at the premises, or indeed at other businesses in the yard, and added that it was difficult to tell whether noise came from Chintz or nearby Hand bar but his business would only be indoors after 11.30pm.

Town clerk Mark Williams told the meeting that councillors had to consider the application in front of them, but could add comments on a possible 1am licence.

Councillor Rowenna Brock suggested if the two sides went away and found a compromise they could avoid "playing licensing tennis" with applications going back and forth to Cornwall Council. The council then took a break as Mr Bruce and the residents discussed the application in another room, before returning with a compromise that Chintz remain open for the same hours as Hand bar below.

Mr Bruce said: "That's all I wanted."

Councillors voted to recommend to Cornwall Council that a 3am licence is not appropriate but they would consider an application for a 1am licence to be appropriate.