Plans for a much-anticipated 120-seat restaurant and food shop on Folkestone's Harbour Arm have been put "on pause".

Macknade Fine Foods has confirmed it has shelved its ambitious expansion bid as it looks to protect its core business in challenging economic conditions.

Earlier in the summer it was announced the popular foodie firm would be launching in the Harbourside development.

Work had commenced on the shipping containers which were to house the new venue, but now bosses have confirmed the plans will not go ahead as had been hoped.

Shane Godwin, managing director at Macknade, said: "We have decided to pause conversations with Folkestone Harbour Arm regarding the new Harbourside development.

"Given the difficult economic climate we are trading in, we feel that it is prudent to ensure the stability of our core businesses in Faversham and Ashford this year and we will re-look at any available spaces on the Harbour Arm in 2023.

"This is by no means the end of our partnership with the Harbour Arm, as there is a huge amount of synergy between the two of us and we are keen to pursue any suitable opportunities to join the Harbour Arm in the future.

"This is simply a case of us putting the project on pause while we assess the impact of the present economic landscape and focus on how we can continue to support our team, our customers, our suppliers and the wider Macknade community."

In June, Macknade announced its decision to pull out of the running of a restaurant at Hoopers department store in Mount Pleasant, Tunbridge Wells, which opened just nine months earlier.

Since opening in 2015 following a £3.5 million refurbishment, the Arm has become a centrepiece of the regeneration of Folkestone's harbour area.

The Goods Yard, which is home to the Harbour Screen, has seen its capacity increased and this summer has hosted sports and cinema screenings which have been free to attend for the first time.

James Davies, commercial operations manager at Folkestone Harbour, said: "Although it is regrettable that Macknade is unable to join us at Folkestone Harbour this year due to factors beyond our control, we continue to admire their focus on quality and community and believe that they will make a great addition to our site when the time is right.

"We would like to wish them all the best in this difficult trading climate and hope that we can welcome them in some form in the future."