Black Country Traditional Inns Ltd had applied to Malvern Hills District Council to carry out internal alterations to the Market Tavern, in Market Square, Tenbury Wells.
Planners at Malvern Hills District Council welcomed the changes as enhancing the town.
Planning officer Sarah Lowe said in the decision report: "The Market Tavern is prominently located in Tenbury and can be seen from a considerable distance.
"It acts as a gateway building when arriving in the town from the south. The proposal would not result in any external changes to the historic fabric but would relocate the public uses of the ground floor to the most publicly visible positions.
"This would create a more vibrant street scene, benefitting the conservation area character, and a more vibrant internal space, thus encouraging greater use.
"The principle of the changes proposed is considered appropriate to the heritage of the building and would be a positive scheme for the wider conservation area. As the proposal would not result in external changes it is not considered that it would cause harm to the setting of any of the surrounding listed buildings."
The building had most recently been used as a cafe with cooked breakfasts, coffee and snacks.
Internal alterations will include re-opening fire places, enlargement of doorways/openings, formation of stairs to cellar, revised layout of WCs, reinstatement of fireplaces, and construction of a bar servery.