Hickory's Smokehouse is set to move into the former Waterfront bar, which closed last autumn, on the River Severn near the Welsh Bridge at Victoria Quay.
It will be the latest addition for the privately-owned company who have been operating in Chester for 20 years and opened the first Hickory's in the city centre nine years ago.
The team is planning to open the new restaurant next door to the Armoury in early December.
Founder Neil McDonnell said: “We know the venue has gone through some tough times in recent years and not really resonated fully with the local community but we do love a challenge.
"Building on our model from other similar locations across the Midlands, we will be going all out over the next five months to bring the people of Shrewsbury something totally unique that will really enhance the food and drink offering in this lovely part of town.”
The site will be refurbished and will include a first-floor balcony for outside dining, a ground-floor veranda for drinking, a completely new open kitchen and chef’s bar along with dining areas for up to 170 guests.
Managing director John Welsh said: “The opportunity to come to Shrewsbury truly excites us all.
"There are some great plans for the town. We’re working closely with Shropshire Council's economic growth unit and genuinely want to play our part.
"It’s a stunning location and we really look forward to joining colleagues such as The Armoury, The Foundry and The Riverside Bar and Kitchen to create a thriving leisure hub on the banks of the Severn.”
It is also set to include a cinema room for children, a high ceiling bar area and fire-pit tables.
Councillor Steve Charmley, Shropshire Council’s Portfolio Holder for Economic Growth, added: “We believe having Hickory’s Smokehouse in Shrewsbury, and particularly this area of town, will be the catalyst for further development of Victoria Quay and its wider linkages to the West End and Quarry Park.
"This is a key regeneration area in the Shrewsbury Big Town Plan which we are championing alongside our main partners Shrewsbury BID and Shrewsbury Town Council. This is a great win for Shrewsbury.”