Side hugging Aussie skipper in cafe (7)
I believe the answer is:
tearoom
'cafe' is the definition.
(tearoom is a type of cafe)
'side hugging aussie skipper' is the wordplay.
'side' becomes 'team' (a side is a sporting team).
'hugging' is an insertion indicator.
'aussie skipper' becomes 'roo' (Australian animal that skips).
'team' enclosing 'roo' is 'TEAROOM'.
'in' acts as a link.
(Other definitions for tearoom that I've seen before include "Cafeteria" , "Small restaurant" , "24" , "Place in which a cuppa is served" , "Type of restaurant" .)