More than 300 shoppers and traders have signed a petition protesting against Tesco's controversial plans to open a cafe at Shepton's Townsend Retail Park.

The protest is being spearheaded by resident Irene Handley, who has lived in the town for four years.

Mrs Handley, of Commercial Road, Shepton Mallet, has had traders and shoppers in the High Street as well as the town centre keen to sign her petition.

She said: "I feel that if Mendip District Council is really serious about regenerating our town they should for once take note of what the High Street traders and the shoppers and residents feel.

"They should be prioritising the traders who have been operating in the High Street and town centre for years and the shoppers who support them. And they should not allow Tesco to put any more of our traders in the town centre out of business."

Tesco have announced plans that they want to open a coffee shop in the New Look store next door to them at the Townsend Retail Park when the national clothing outlet moves into the vacant Woolworths premises further down the complex.

The plans also include creating extra space for shoppers, more customer service tills and more jobs in the expanded store.

Mrs Handley and fellow opponents of the scheme argue Tesco's original planning permission was granted on the condition that no cafe would ever be allowed on the site.

Tesco's landlords and estate arm at the time – Spen Hill Developments – let one of the outlets on the other side of the car park to Costa Coffee. They also altered the waiting time for their car parks from the original four hours for shoppers to just two hours – restricting time people could wander down the High Street to shop there.

Shepton Town Council is now urging Mendip to expand the parking limit to four hours to give retail park shoppers more time to use the town centre.

Mendip council has meanwhile increased car park charges in the town centre.

Mrs Handley, a trained lawyer who is now a voluntary worker for one of the town centre businesses, has been greatly encouraged by the response to her petition. She said: "If the Tesco coffee shop happens there will be no need or reason for anyone to walk across the road and down into the High Street. I have been focusing my petition on people using the High Street and town centre, and have been really encouraged by the support. There are so many great businesses down there. They offer so much and they are still going strong. People would be amazed what they have – if only they bothered to look.

"A Polish delicatessen opened recently at the bottom of Town Street – within days Tesco were stocking their shelves with Polish goods. And Tesco is now stocking the same books the TIC is selling at the top of the High Street.

"Wherever they go Tesco ignore the planning laws and put ordinary hard working people out of business. I don't want to see that happen here. There is no gentlemanly code of conduct in all this.

Mrs Handley is putting pressure on Mendip council to ensure the application is discussed by councillors on the planning board – rather than leave it to officers to use their delegated powers and make a decision.

She said: "Mendip council approved Tesco's move into the retail park and look at what's happened to the town centre. If Mendip District Council approves these latest plans they should hang their heads in their shame."

Juliet Watchman, who runs the Bell Hotel in the Market Place, is also backing Mrs Handley's campaign with a board of support outside her premises.

"Another coffee shop will not effect our trade but I am doing this to support all the cafes and coffee shops here in the town centre," she said.