At present there are around 11 people living on the streets of the resort.
As well as taking overnight shelter in the caves, others sleep in bus shelters on the West Shore, beach shelters or in doorways.
Brenda Fogg, founder of drop-in center Hope Restored, based at Gloddaeth Church Hall, believes the problem will only get worse and is expecting a busy winter.
The charity serves hot meals for the homeless or for those in need two days a week, and for most of them they will be the only hot meals they'll eat during the week.
Crest Cooperative in Llandudno Junction has just donated £500 to Hope Restored, and the money will be used to buy blankets, purchase tents, toiletries and clothing for the homeless.
Brenda Fogg said: "People are homeless for a variety of reasons, we're not here to judge."
"They may have suffered a marriage breakdown, have alcohol issues, illness, drugs or mental health issues."
"Giving them tents and blankets to keep them warm will help them get through the winter."
Brenda says the current economic climate has led to an increase in homelessness to Llandudno. She opened the Chapel Street drop-in centre two years ago.
"The other churches do give out sandwiches and fruit, but I'd like funding so we could offer hot meals five days a week," said Brenda.
"Today we fed 18 people, but our average number is around 25."
"If I've noticed a familiar face hasn't turned up, I'll go out looking for them as I worry about them."
"I think we are going to be busy this winter as there will be further cuts in benefits, people are struggling to keep things together."
Hope Restored also helps homeless people claim housing benefit, and some have turned their lives around and they have become volunteers themselves.
"We are called Hope Restored because one of the clients who comes here said we gave him hope, and that's exactly what we are about."
** UPDATE **
Since this article was published, local pressure has resulted in access to the caves being removed from those seeking refuge from the weather. Now where should they go!!