The group currently operates 18 bars across the North of England under the brands of Banyan Bar & Kitchen, BOX and Manahatta.
The company has secured planning permission for the new site, which will launch in February.
Manahatta, Sheffield will be the eighth site for the brand, with current locations including Birmingham, Harrogate, Leeds, Manchester and York.
Inspired by New York loft bars, the city centre venue will comprise two floors. It will feature bookable booths, a 12-metre feature bar with a DJ podium, external seating and a first-floor balcony overlooking City Hall.
What's on the menu?
A Grilled Cheese Sandwich with Henderson’s and Beef Brisket will be added to its menu, which will also feature drinks including a new riff on Vodka Sunrise – Steel City Sling.
The venue will also offer cocktails served by the glass, as a supersize sharing drink, cocktail trees or the Manahatta magnum.
Bao buns, tacos, Korean cauli wings and American burgers will also feature on the menu, with gluten free, veggie and vegan options on offer.
Arc Inspirations chief executive Martin Wolstencroft said: “We are delighted to continue growing our successful portfolio of brands and it is always such an exciting adventure introducing what we do to new cities and locations.”
Coming to the new city of Sheffield, he was “confident” the Manahatta brand would be a popular addition to the already existing nightlife and bar scene.
Wolstencroft continued: “Sheffield is a vibrant city, undergoing transformational investment which we want to be a part of.
“Their large population, with over 17 million visitors annually, makes this the right time to bring the brand to the city as we seek to continue expanding the business over the next three-to-five years.”
Alongside offering a new space for up to 500 guests, the bar will also create 70 jobs in the local area, including managers, bar, floor and kitchen staff.