If approved, the scheme would turn the current building used by Hills of Lymington, at 44 Milford Road, into a convenience store and separate eatery with 17 parking spaces.
The application, from Tim Lincoln of Brightbeech Investments LLP, said the rest of the Hills of Lymington site, along with the former Fox Pond Dairy Depot, would be kept available for later development with homes.
It claimed up to 40 full and part-time jobs would be created, and that it was not big enough to generate significant extra traffic.
It said: “A new store will help to retain expenditure within the local area, to the benefit of the community.
“In addition, the proposals will deliver a considerable economic boost through the creation of full-time and part-time jobs.
“The development presents the opportunity to provide local people with quality, fresh food within walking distance of their homes and for those needing to top up their shopping.”
Six objections have been lodged against the proposals, which set out daily trading hours of 6am-11pm, warning of the potential for nuisance parking and noise.
They also said that the new premises would compete with the four takeaways and a convenience store already trading in the nearby shopping parade, and that affordable homes would be a better idea.
One said: “The planned extended opening hours for the convenience store will undoubtedly lead to considerably increased noise levels from both traffic and customers in what is a significant residential area.”
NFDC is scheduled to make a decision by 9th March after the deadline for public comments on 1st March.