Falmouth developed as a town and port in the 1600s. Custom House Quay, which the restaurant backs onto, was built in the 1670s. The Hut was originally a coal cellar. It occupies the lower floor of a four storey listed building. The space has housed a fish and chip shop, a late night bar, maz's bistro and became the hut restaurant in 2004.

The hut was taken-over by James Dormer in July 2006. James owns, manages and is the chef for the restaurant. He was formerly the head chef at the National Maratime Museum Cornwall.