There had been 38 noise complaints against the Lone Star Cafe and Bar on George St since 2013.
A liquor licence renewal document showed five of the complaints resulted in excessive-noise warnings being issued.
Licensing Inspector Tony Mole recommended the business explain how it would reduce noise in the area at a public hearing on Wednesday before the renewal of its liquor licence was decided.
Lone Star Cafe and Bar owners Neisha and Nicholas Nilsen had attempted to stop the noise problem but complaints were still being made, Mr Mole said.
Mr Nilsen said the business was "mindful of our community obligations" but did not want to comment further before the hearing.
The owners did not address noise control in a host responsibility document submitted with the licence renewal application.
The business was in the Dunedin City Council’s "central activity zone", the area where social, economic and cultural activity was expected to occur.
The area opposite Lone Star was residential and included a motel complex, the report said.
The Lone Star had been listed for sale on Trade Me since March as an "iconic local business".
There were no public objections to the licence renewal, and police and the medical officer of health were not concerned by the application.
