The franchise of US donut giant Krispy Kreme at William Street has failed in its bid to create a dine-in space.
The seating would have been extremely limited - essentially just a handful of chairs at a tabletop running along an inside corner.
But it would still set a bad precedent, according to local objections.
An Taisce urged planners keep in mind the objectives of the current city development plan, to avoid allowing Galway City Centre to morph into Dublin's Temple Bar.
Another local business agreed - claiming that the street has always offered a high-end retail shopping experience and it should stay that way going forward.
They argued it would be the seating area first - but if granted, an inevitable request for a canopy and outdoor seating would follow.
Ultimately, cold water has been poured on the plans for now, as city planners have refused permission - opening a four week window for an appeal to An Bord Pleanala.
