It will be open to paying diners during the day offering breakfasts and 'menu del dias' as well as 'a la carte', but in the evening will be reserved exclusively for the homeless who will be invited to a meal free of charge.
The restaurant will be called "Robin Hood" although "the idea is not to rob from the rich to feed the poor but to share," Father Ángel Garcia, the priest behind the idea, told Europa Press.
It is the latest initiative from the Roman Catholic parish priest of Chueca's San Anton church in Madrid, who founded the Mensajeros de la Paz (Messengers of Peace) NGO.
Father Ángel Garcia is behind the restaurant plan. Photo: AFP
His church has become known for its progressive initiatives that include free wifi, virtual confession via smart phone app and free tea and coffee all day long.
Last year the charity organized a gala dinner for 200 homeless people on Christmas Eve in the City Hall when the food was prepared and served entirely by volunteers.
Father Ángel said he hopes that the restaurant, which will open in Madrid's Calle Eguilaz later this month,will be the first of a chain of establishments providing for the down and out.
He said he wanted the homeless to share the experience and dignity of eating in a restaurant rather than a soup kitchen.
"Dinner will be served on glass dishes and they will be given cloth napkins," he said.