COFFEE shop chain Costa is to open its third outlet in Carlisle city centre, taking over Pancho's Mexican restaurant.

The Whitbread-owned business hopes work to transform the restaurant, in Court Square near the railway station, will start in the new year.

It is aiming to open the outlet in February or March. Eight to 10 jobs will be created.

Planning permission was sought from Carlisle City Council to alter the shop frontage as it is a listed building. This has now been passed.

Pancho's was one of the first restaurants to bring the likes of fajitas and enchiladas to Carlisle.

It means an end for the popular eaterie which has been in the city for more than 16 years.

The restaurant was opened by former city nightclub king Ged Crooks who died in August. The business is currently being run by his son Steven.

Costa came to Carlisle in 1998. It has coffee shops at the Old Town Hall and on the second floor of Waterstone’s book shop in Scotch Street.

The firm also has outlets in the service stations at Southwaite and Todhills.