EL CERRITO — A popular doughnut shop at El Cerrito Plaza shopping center has apparently won its battle for survival after loyal customers and a City Council member rallied to its support.

All Star Donuts owner Vannara Sem was offered a five-year lease extension last week from mall owner Regency Centers Corp. for its current space that fronts on Fairmount Avenue across the street from the El Cerrito Plaza BART station.

In July, Regency asked Sem to move out of the space when his current lease expires on Dec. 31, saying that time had run out for him to exercise his option for an extension.

After Sem received the news, hundreds of patrons and well-wishers signed petitions and El Cerrito Councilman Mark Friedman sent a strongly worded letter asking Regency to reconsider its decision.

“I seldom hear from as many constituents as I have on this issue,” Friedman wrote. “I cannot think that the bad will that Regency will engender if you persist in this move will be worth whatever minor additional revenue you think you can generate from the Sem family’s current storefront.”

The campaign seems to have worked now that the company has offered the new lease, which will take effect Jan. 1.

The terms of the lease call for 3 percent annual rent increases — about the same amount the shop has been receiving for the past few years, according to Sem’s son, Khamarin Sem.

Sem will also be required to replace the signs on either side of the storefront and do “updates to the current fixtures, furniture, paint, menu board, interior signage, etc.,” according to an e-mail from Regency leasing agent Jenny Hess to Sem’s attorney.

Regency will contribute up to $10,000 for the “permanent” improvements, including the signs, painting, lighting and flooring.

The money can’t be used for furniture or equipment for the shop, which are not considered permanent, according to Hess’ e-mail.

“We are working on new paint and awnings for the entire center … (we) will cover the cost of a new awning.” Hess wrote.

Khamarin Sem said the family will be getting estimates for its share of the improvements, which must be completed within 90 days after the lease extension takes effect.

In offering the extension, Regency apparently backed off from its earlier stance that doughnut shops “are losing relevance in today’s society.”

“This decision is not related to their ability to pay rent,” Hess wrote previously. “We like to feel comfortable with (our tenants’) rent-to-sales ratio.”

All-Star opened at El Cerrito Plaza in 1996 and moved to its current location the center was remodeled in 2002.