Owned by Sue Fenton and Elizabeth Kendell, the business is a new venture for both, Ms Fenton said.

"I've worked in cafes before, but have never owned one," she said.

Located on Tamar Street, opposite City Park, Oak Tree Cafe opened three weeks ago and is already starting to see a stream of customers who like what's on the menu.

"We have home-made goodies, like cakes, slices, muffins, soup, nachos, lasagna, quiches and cheese platters, that are all made in my kitchen," Ms Fenton said.

Leaping Goat coffee, which is roasted in Spreyton, is also popular with customers, as is the specialty tea used at the cafe, Tea Garden.

"Everything we do, we're trying trying to use Tasmanian producers," she said.

Oak Tree Cafe is open at 64 Tamar Street, Launceston, between Monday and Saturday from 8am until 4pm, unless there is an event on in City Park or Albert Hall and then hours are extended.