The Sydney suburbs falling out of love with fast food

3 hours ago 2

Fast food companies are facing growing community resistance to plans to operate new outlets in Sydney suburbs amid an increase in planning disputes involving local councils, residents, health authorities and NSW Police.

Proposals for two McDonald’s outlets, in Balgowlah and Crows Nest, are the latest planning applications to face hurdles after sparking backlash over potential noise impacts, “antisocial behaviour”, traffic congestion and perceived health risks.

A concept photo of the Balgowlah McDonald’s store.

While Australia’s seemingly insatiable appetite for fast food has seen the industry hit a $30 billion sales record in the past year, companies including Guzman y Gomez and KFC have faced similar backlash over plans to expand into the suburbs.

An hour-long Northern Beaches Planning Panel meeting last week resulted in plans for a McDonald’s outlet in Balgowlah being rejected after panel members ruled the proposal was not suitable due to the risk of “antisocial behaviour in the vicinity”.

The panel also found the $3.9 million development may also lead to “unreasonable impacts on the already congested surrounding road network”.

The decision followed a community campaign signed by 3735 people opposing the store, which would have operated from 5am to midnight, 100 metres from the KFC outlet in Manly Vale.

Plans for the McDonald’s outlet in Crows Nest are being considered by North Sydney Council.

A similar bunfight is playing out in Crows Nest as residents oppose plans to build a 24/7 McDonald’s store on the site of the town centre’s Westpac branch.

The proposal prompted debate about the diversity of the shopping strips, with some residents arguing the store will “destroy the local feel of the area”. Others claim “allowing a 24/7 store will set a precedent” and “transform the character of the area”.

KFC last year faced similar community opposition over its plans to launch an outlet on King Street in Newtown, with the proposal sparking concerns the outlet would “erode the unique character” of the shopping strip.

Some residents, in submissions to the City of Sydney Council, argued King Street was already home to five chicken shops and the addition of a sixth would “undermine the culinary diversity and community atmosphere that makes King Street so special”.

Planning applications for new fast food stores are increasingly dividing opinions in Sydney.

Meanwhile, Guzman y Gomez was forced to scale back plans for a 24/7 outlet in Mosman after concerns were raised by council planners regarding the possible impact of noise.

In May, the City of Sydney Council rejected plans for a 24-hour McDonald’s in Redfern following resistance from residents and police.

The planning battles come as new figures show fast food companies are rapidly increasing the number of outlets across Australia, with Guzman y Gomez opening 27 restaurants in 2024, followed by KFC with 23, McDonald’s with 19, Domino’s with 18 and Hungry Jack’s with 16.

The figures, published by ANZ in its food, beverage and agribusiness insights report, estimated there could be at least 30,000 quick service and fast food outlets in Australia by 2030 – the equivalent of one restaurant for every 1000 Australians.

An artist’s impression of a proposed 24-hour McDonald’s restaurant in Redfern.

Business Sydney executive director Paul Nicolaou has criticised the opposition to fast food applications, arguing the refusals can rob consumers of choice.

“For a restaurant to be refused over noise and crime is wrong – these stores employ a lot of people and if there’s demand, they should be able to operate,” he said.

In a statement, a spokeswoman for McDonald’s said the company is “committed to engaging with councils and communities to ensure we’re listening to feedback”.

“This includes limiting the impact of common concerns such as traffic, noise, and waste, and promoting our potential to contribute as a local employer and a business committed to giving back to the neighbourhood,” she said.

McDonald’s has not ruled out challenging the Northern Beaches Council’s decision to refuse its application in the Land and Environment Court.

“We will take our time to review council’s decision and feedback before considering next steps,” the spokeswoman said.