At the bottom right of this photo can be seen the mock-Tudor, Esplanade, façade of the cafe and the entrance to the the Lounge. Presumably the white expanse of roof with a lone ventilator is the auditorium. There was a grander entrance on The Promenade through the ground floor of the building which is just part-visible on the middle left of the photo.
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The photo is from August 1928. “Pennies By The Sea” indicates that the auditorium/concert hall was a cinema showing talkies in 1932. The Lounge is not listed in the KYB for 1931. “Pennies By The Sea” also says that the hall received its first cinematograph license in 1912 and was mentioned in the Bioscope Magazine of 7th November 1912; but there seems to be no mention of this hall in KYB for 1914. Further research is needed on this one.
This gets more puzzling. Google Streetview on The Esplanade clearly shows the mock-Tudor gable of the cafe and entrance to the Lounge. It has been built out to the pavement at ground and first-floor levels and is called the “Loop” bar and grill; the address of which is 15 The Esplanade, YO15 2PB. The Forum amusement centre (exactly as in the photo in this listing) is the next property but one, further along The Esplanade to the north.
This picture would better placed under the Lounge Cinema, as, indeed, the Forum complex is further to right, all but on the other corner just out of shot.