The project, described as "contemporary and unique" with pink and orange units, has been given council approval on a triangular piece of land in Moor Lane.
The two-storey venue will include four different retailers offering a range of food and drink, with internal and external seating areas for customers.
And the bar/diner has been allowed even though it will be sited on a grass verge directly in front of a row of five existing shops, with residential flats above.
Local company Recall Properties Ltd submitted the plans just under a year ago and council bosses gave the idea the thumbs up this week after alterations were made to the original design.
A report to the planning department said: "This development proposes a unique opportunity to widen the range of food and drink services in Preston, particularly benefiting the vibrant student population within the immediate area, whilst encouraging an environmentally sustainable development on a vacant and underutilised parcel of land."
The company says it wants to create a “unique and inviting eating space with functional seating areas for users of the proposed eateries.”
It will have a rooftop terrace with tensile fabric canopies above “high quality, modern shipping container style” food and drink outlets. One shipping unit will be set at an angle of 33 degrees to provide a staircase.
Despite the proximity of the scheme to existing residential and retail accommodation, only one letter of objection was submitted to the council. The sender cited an "unacceptable impact on visual amenity by reason of poor design."
The developer says strict noise and food odour mitigation measures will be put in place to ensure it does not create a nuisance for nearby residents.
The venue has been granted opening hours of 8am to 11pm Monday to Saturday and 9am to 10pm on Sundays and Bank Holidays.
Officers from the city's environmental health department have imposed a limit of up to 75 people in the establishment at any one time.
The scheme is the latest hospitality idea to boost the university quarter which is now being seen as the new “go-to” area of the city as redevelopment continues at pace.