Santa's Grotto at Cadbury World in Dunedin has been closed after being deemed a fire risk but a new cafe is to open at the Cumberland St site early next year.
Cadbury World events manager Kylie Ruwhiu-Karawana said the grotto had shut and would not reopen because it had not met fire safety standards.
The grotto had been used for about nine years and it was a ''hard decision'' to halt the hosting of Santa for family visits.
However, a cafe was being built in ''a different space'' at the Cumberland St building - in an old ''raw material'' transport lane between Castle and Cumberland Sts.
The company had resource consent to transform the driveway to a cafe by early next year. Brickwork in the space was being sandblasted at the weekend, she said.
The Cadbury-themed cafe would be accessible from Cumberland St and Cadbury World and be open to the public, not only those who paid for a tour, she said.
When the cafe opened, there would be new tour options available, such as a tour and a hot chocolate experience and a tour and lunch experience, she said.
• Pixie Town opens at the Toitu Otago Settlers Museum next month and visitors can have photos taken with Santa at the museum from December 14 until Christmas Eve.
Pixie Town will be open between 10am and noon and 1pm and 4pm from December 9 until January 2, with exception of Christmas Day, when the museum will be closed.
