Fisher & Donaldson, who have been serving savoury treats for five generations, said the "24-hour bakery" had become a massive hit among revellers in St Andrews.
But councillors criticised the "inappropriate" move, claiming it would spoil the image of the seaside town.
Ben Milne, manager of Fisher & Donaldson, said the machine - which serves sausage rolls, stovies, pies and other delicacies - is so popular that it sells out twice a week.
He said: "The feedback has been amazing. I've only had positive responses - people just seem to really like the idea."
St Andrews Labour councillor Brian Thomson said: "I am sure it will be appreciated by some people looking for something to eat on the way home from a night out, but it's completely inappropriate in the St Andrews Conservation Area."