Lykke will be one of the first eateries to open in New Era Square and is set to benefit from hundreds of students expected to move into the development this summer.
Its sister venue is Hygge Café in Fitzalan Square, which opened in 2019.
Fit-out is under way and the new venue will open at the beginning of August. Some 25 jobs are set to be created once fully operational.
Lykke will be one of the first food and drink businesses to open in New Era Square. The scheme, which fronts St Mary's and the inner ring road, has more than 700 student flats and a central square surrounded by retail and restaurants units.
Boss Alex Moore said: “New Era Square is a fantastic, new pedestrianised space which I am excited to bring Lykke and our Danish concept of a relaxed multi-function work, meeting, eating and drinking space to it in August.
“It has been very well done by the landlord and is comparable to similar schemes in London and Manchester.
"I am confident New Era Square will become the new go-to eating and drinking destination in Sheffield ”
Alex, who moved to Sheffield eight years ago, opened Hygge Café in 2019, just six months before the pandemic hit.
He said: “As a small independent business we have been very grateful for the grants throughout the pandemic. They have enabled us to survive and now grow the business. It has been very hard to watch fellow hospitality business owners struggle in the pandemic, but now that restrictions are being lifted, I am very positive for the sector in Sheffield.”
He praised Sheffield City Council’s commitment to the regeneration of the city centre.
“When I opened Hygge Café in Fitzalan Square the location was questioned. However, the improvements made here and in several areas across the city have made them desirable areas.”
Sheffield-based commercial property solicitors Mason Thomas Law negotiated the deal in two weeks with landlord New Era Developments on behalf of owner Alex Moore.
Director Cathy Thomas said: “Normally deals such as these take around six to eight weeks to complete, so I am delighted that we were able to complete in only two weeks.”