The cafe and bar in the Storey Centre will close at the end of the month but is set to reopen under council management.
Lancaster City Council aims to take over the running of NICE bar after city caterers the Lewis family decided to end their lease after seven years in charge.
The bar, cafe and restaurant will shut on March 31 but the council’s plan is to reopen with a “new look and feel” after a minor refurbishment.
Members of the council’s cabinet will talk about the plans next Tuesday, March 29.
Coun Janice Hanson, cabinet member for economic development, thanked the NICE team for their hard work since the council-owned Storey building re-opened in 2009.
Catering for large events will now be provided by a preferred shortlist of outside caterers.
Francesca Lewis, former manager of the Storey NICE bar, said her family’s company would continue to run the NICE cafe at Lancaster Castle and Casa Rastelli in Marketgate.