A US restaurant owner has been forced to drop a 'naked lunch' promotion following the intervention of his local council.

Leigh Turner, of Greenville, Maine, had offered a free Skinny Dip sandwich to patrons who were willing to plunge naked into the nearby Moosehead Lake. His promotion had sparked several complaints to police and three customers who took part are currently awaiting trial for indecent conduct.

Greenville's town board later sought to put a stop to the regular displays of nudity by voting to reject Turner's application for a liquor license renewal. Officials told the businessman that they would reverse the decision if he dropped his promotion.

Turner has quickly agreed to comply with the board's wishes, admitting that his decision was a "no-brainer".

Meanwhile, town manager John Simko said that he is displeased by the perception that "we're the bad guys and the town is keeping small business down". He added that the intervention was necessary as the restaurant is so close to public places.