Construction of the 200m long development is expected to be complete by the end of the year, with an expected opening in early 2019.
Called Hall and Woodhouse, the development is pitching itself as an urban, all-day, multi-occasion café, bar and dining room.
It is a first foray into Swindon by the family-owned Badger Beer brewer, which has pubs in Salisbury and South Wiltshire.
The first phase of the canal restoration works have come to an end with hundreds of cubic metres of clay being laid to reconstruct the canal banks and prepare the land for development.
Hundreds of cubic metres of silt have also been removed from the canal bed which will make boat trips along the canal easier in future.
The second phase of the canal restoration will be delivered by contractor Alun Griffiths and is due to commence this week.
The first step will be to drain the water from the southern section of the canal alongside Waitrose ready for the bank improvements to begin.
Cllr Toby Elliott, Swindon Borough Council’s cabinet member for strategic planning and sustainability, said: “It’s great to see further progress at Wichelstowe following our announcement in January of the agreement with Barratt Developments to build a further 2,750 new homes on the site.
“The Hall and Woodhouse restaurant will be a great addition to the area and I am proud that this quality, independent and well-respected business is investing in Wichelstowe and Swindon.
"This restaurant will be a landmark location for residents from across the town and further afield. I look forward to seeing the diggers in the ground shortly.”