The Junction will open on the site of the former Kukui club in Park End Street on Saturday 24 September and will aim to appeal to live music fans by providing a venue for session bands and new local music talent.
Cavendish Bars marketing manager Russell Nisbet said the company had planned to launch a new brand because it had recognised a gap in the market within Oxford rather than because it had grand plans to roll-out a concept nationwide.
"We had an opportunity to acquire the site, but we have a Wahoo bar in Oxford already, so instead of competing against ourselves we decided to open a proper music pub.
"On a Saturday night in Oxford you can hear DJs anywhere but there wasn't much going on in live music. This will appeal to a slightly older audience, although we will host a student night on Thursdays."
The Junction is Cavendish's latest brand. The company, which was formed in 2008 by Christian Arden, operates Wahoo bars in Brighton, Clacton, Lincoln, Oldham, Oxford, Putney and Southampton and has TP's sports bars in Bromley, Clacton, Colchester, Swindon and Wakefield.
Arden's company also owns the Chicago Rib Shack in London, which recently launched its first off-shoot, Baby Rib Shack, at Westfield Stratford City.