It will be used as overflow for the main restaurant, a news release said.
The restaurant is also expanding its menu with fried pickles, cheeseburger fries, bacon PB&J cheeseburger sliders, a Nashville hot chicken sandwich; The Impossible Burger, a plant-based vegan patty; and lettuce-wrapped burgers.
It is expected to open in the fall.
Crab & Mermaid opened in 2016 and closed the following year.
Square One Concepts opened Famous 48, an American-style tavern, in its place in November 2017. But in July, the restaurant said it was closing for the summer and would "return with a fresh new look and new menu to boot."
Cold Beers and Cheeseburgers is Square One Concept's fastest growing concept with nine restaurants around the Valley, and one in San Diego.
Two restaurants are expected to open at Park West in Peoria (November 2018) and Pima Crossing in Scottsdale (February 2019).
Square One Concepts is also working to open a new concept, High Dive Bar and Grill, near 42nd Street and Indian School Road.