Costa Coffee has been granted permission to open a branch in Teignmouth.
Councillors voted 17-4 in favour of the firm's application.
Local shop owner Thomas Free claims jobs and livelihoods in the resort will be lost when Costa arrives.
He told the planning committee the seaside town has 26 coffee shops and 92 outlets where coffee is served.
Costa said their brand attracts more customers into towns like Sidmouth and Honiton.
More than 1,500 people signed a petition against Costa's plans for Teignmouth.
Some residents in Totnes are angry that a campaign group has stopped the opening of a Costa Coffee in the town. More than 5,000 people signed a petition against the national chain opening on the high street. But some say the new cafe would have provided jobs and been good for town's economy.
Our presenter Ian Axton spoke to Frances Northrop - one of the leading anti-Costa campaigners in Totnes. He asked her for her reaction to the news that Costa Coffee has decided to pull out of the town.