Some neighbours claimed it would be an "eyesore and a public nuisance".
But a black cabinet will be built on Tynemouth's stunning sea front - albeit slightly smaller.
Riley's Fish Shack received approval earlier this month to erect the box which will overlook King Edward's Bay.
The shipping container restaurant, officially one of the best on Earth , says it needs it to support upgraded service works.
But after the plans split opinion, North Tyneside Council said the box can be built - as long as it's scaled back.
Riley's applied for a 5ft-high box , but after locals moaned it would "significantly obstruct" their "beautiful vista", the council instead granted permission for a 1m high cabinet.
The restaurant must get approval for revised plans before work can start.
Yet not everyone was opposed to the box.
Some locals said they realised the restaurant needed the box to grow, and that the box was "no different from a British telephone fuse box".
But North Tyneside Council received ten objections from neighbours who feared "a 5ft high box would significantly obstruct" their "beautiful vista".
One said the location - on East Street's pavement overlooking the cliff edge - was "disrespectful" as others called for it to be re-sited.
Previously, ChronicleLive reported how some objectors feared the then 5ft box would lower their house price.
But granting planning permission, the council said the location - around 20m from the nearest properties - was "acceptable".
"It would be clearly visible from these properties but it is not considered that the impact on visual amenity would be significant when taking into account the nature of the development and the open aspect enjoyed by these properties," states a planning document.
Since opening, it has gained an enormous fanbase while earning a string of awards and plaudits.
In a glowing review , famous food critic Jay Rayner wrote: "Put away the guide books. I have found the eating experience of the year."
