McDonald’s scraps plans for controversial Sydney restaurant

McDonald’s has withdrawn its development application for a new restaurant in Sydney’s Crows Nest.

The decision follows objections from local residents and aligns with a broader pattern of community responses to the company’s expansion plans across Australia.

North Sydney Council confirmed on Wednesday that McDonald’s formally withdrew its proposal.

The application sought to convert a former Westpac bank branch on Willoughby Road into a 24/7 restaurant.

The $2.6 million proposal, lodged in May 2025, had indicated the creation of approximately 100 jobs.

Residents had raised concerns during a Wollstonecraft precinct meeting.

Specific objections included the proposed exhaust stacks, which residents stated would emit “unacceptable” odours.

Jamie Vachon, a resident who petitioned against the application, suggested the Crows Nest Metro Station as an alternative location for a McDonald’s outlet.

“Crows Nest residents understand that our suburb is changing,” Ms Vachon commented, noting the presence of other chain food options in the area.

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Supplied Real Estate The American burger giant had proposed converting a former Westpac
 bank branch into a 24/7 restaurant along the bustling Willoughby Road high
 street in Crows Nest.

The American burger giant had proposed converting a former Westpac bank branch into a 24/7 restaurant along the bustling Willoughby Road high street in Crows Nest.

She stated that a 24/7 McDonald’s could attract patrons from the Crows Nest Hotel, potentially leading to increased crime, vandalism, litter, and uncontrolled delivery drivers.

Ms Vachon also mentioned an existing rodent issue behind local restaurants, which she believed the new outlet could exacerbate.

“This is nothing but a money grab by McDonald’s with no care for the community,” she said.

North Sydney Council considers late-night trading hours a “privilege, not a right,” with the Crows Nest Hotel currently being the only establishment permitted to operate past midnight. McDonald’s operates restaurants in nearby North Sydney, St Leonards, and Cremorne.

The Crows Nest outcome is one of several instances where communities have responded to McDonald’s expansion.

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Supplied Real Estate The 24/7 McDonald's would be located in the heart of Crows Nest, in
 the former Westpac building. Picture: Google Maps

The 24/7 McDonald’s would have been located in the heart of Crows Nest. Picture: Google Maps

The company aims to open 50 new outlets by the end of 2026, adding to its existing 1,053 stores nationwide.

This development into residential neighbourhoods, from inner-city Newtown in Sydney to Hendra in Brisbane, has prompted local engagement, with concerns often centring on traffic, anti-social behaviour, and the impact on local identity.

In Newtown, a development application has recently been lodged for a 24/7 outlet in a renovated late-Victorian building adjacent to Clem’s Chicken, drawing community attention. Earlier this year, a McDonald’s proposal in Redfern was blocked after objections from police and Aboriginal organisations.

Similarly, a franchise application in Balgowlah, northern Sydney, was rejected by the Northern Beaches Local Planning Panel due to community concerns about traffic congestion and potential anti-social behaviour.

In Melbourne’s inner north, a planning proposal submitted to Darebin City Council for a 24/7 McDonald’s outlet has also faced community opposition, with concerns raised about preserving the area’s character.

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The fast food giant is becoming increasingly unpopular.

However, not all community efforts have prevented approvals.

In the Brisbane suburb of Hendra, a new McDonald’s received council approval in January. Residents subsequently initiated a fighting fund to lodge a Planning and Environment Court appeal against the plans.

This marks the first time in Australia that a character residential site has been rezoned for a fast-food outlet.

Bil Moore, spokesman for Hendra Locals Against McDonald’s, told 4BC Brisbane last week that financial constraints limited their ability to pursue the appeal.

“It was doomed to failure,” he stated.

“The residents feel terribly overlooked by Brisbane City Council. We clearly weren’t heard. Five houses now have a 24/7 fast-food drive-through as their next-door neighbour.”

Mr Moore suggested that councils may face challenges when opposing McDonald’s, citing the six-year period before the Safety Beach McDonald’s in South Australia was finally approved. “This happens all over the world,” he commented.

“Taking on these fast-food giants with monstrous budgets and highly skilled legal teams, that’s all they do. You’re taking on the biggest fast-food company in the world.”

The ANZ’s Food, Beverage, and Agribusiness Insights report estimates Australia could have at least 30,000 quick service and fast-food outlets by 2030.

Mr Moore noted the broader implications, particularly for Brisbane with the upcoming Olympics.

“This could be repeated many times over, where someone in a residential property could have an unwanted neighbour,” he cautioned.