The laneway transformation of Fortitude Valley is set to continue with approval of a development application for backstreets off Ann Street dubbed 'Bakery Lane' which could ultimately force out popular bars The Bowery and Laruche.

Plans for the patch of land owned by the Apostolos Family Trust have been approved by Brisbane City Council and are set to deliver a Melbourne-style fresh food market, hidden cafe courtyard, new shops and apartments to the high-profile corner.

An artist's impression of 'Bakery Lane', a development planned for backstreets off Ann Street.

But the project completion would drastically change the buildings occupied by existing tenancies, some in heritage buildings which will be partially demolished according to plans approved in June last year.

To make way for the food market featured in stage two of the project, Laruche and Lifeline would be effectively cut in half, and the back-end of The Bowery substantially diminished.