Donegal Restaurant to Convert from Dining to Residential Use
A well-known seaside restaurant in Donegal, Ireland, is slated for conversion into residential housing, marking the finish of an era for a popular dining destination. The Cove Restaurant, located in Portnablagh outside Dunfanaghy, has been position on the market for €550,000, according to DNG Kelly.
Property Details and Market Value
The 2,809 square foot property, described as a “Bistro-style restaurant in an amazing location on Donegal’s Wild Atlantic Way,” offers stunning views overlooking Portnablagh Harbour, Hornhead Pier, and Sheephaven Bay. The restaurant currently features seating for approximately 54 patrons across its ground and first-floor dining areas, with an additional capacity for 50 diners outdoors during warmer months. The selling agent highlights the property as “an excellent investment opportunity with its elegant and relaxed ambience.”
Local Impact and Tourism
The Cove Restaurant has been a favored spot for families and tourists alike, contributing to the local economy and the vibrant atmosphere of the Wild Atlantic Way. The conversion from a restaurant to residential use reflects a broader trend of adapting businesses to meet changing market demands and investment opportunities.

Recent Restaurant Closures in Donegal
This news follows the recent announcement of Kealy’s Seafood Bar in Greencastle, which will not open for the 2025 season after 36 years in business. The owners cited a desire to focus on “the next stages of our lives” and expressed gratitude for the community’s support. Another seaside café in Donegal also recently announced its permanent closure after Easter.
Investment Potential
The property’s location and existing infrastructure present a unique opportunity for residential development. The high standard of finish and proximity to Dunfanaghy village further enhance its appeal to potential buyers.