The company has made repeated attempts to turn The Drysalters in Elland Road into a drive-thru.
More than 100 people submitted objections to the company's initial plans in August 2020.
Leeds City Council went on to reject Costa’s plan and the company appealed against the decision, but that appeal was rejected in May 2021.
Now Costa has lost its latest appeal to the planning inspectorate.
A planning inpectorate report states: "The Council argues that the proposal would unnecessarily remove a valued local community facility thereby reducing the sustainability of this community and its residential environment and that the number of objections received indicate that the community do indeed value the Drysalters as it meets their day-to-day needs.
The plannining inspector added: "While I note that the pub is not a designated asset of community value, based on the comments submitted by interested parties and the other evidence before me, the Drysalters would appear to be well frequented by football fans and users of the crematorium in addition to residents of the Cottingley Estate as well as others from Beeston and Churwell.
The inspector wrote in the report: "I therefore conclude that the proposed development would result in the unacceptable loss of a community facility and local service.