McDonald’s has been served a setback on Phillip Island, after locals raised concerns about traffic, the impact on local businesses and the character of the tourist town.
![McDonalds. Image: Soufiane Rafik [Unsplash]](https://assets.smartcompany.com.au/wp-content/uploads/sites/4/2026/10/soufiane-rafik-sekb-iYOG1o-unsplash-1.jpg?quality=70&w=840)
McDonald’s had plans to set up shop on Phillip Island, but locals are far from lovin’ it, with councillors unanimously rejecting the proposal yesterday.
Bass Coast Shire Council voted against the development despite council officers recommending its approval.
The rejection follows opposition from residents and local businesses concerned about traffic, and the impact on independent restaurants and cafes and the character of the Victorian tourist town.
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Local campaigner James Ahern launched an online petition opposing the development, which attracted more than 5,800 signatures.
A separate petition supporting the development attracted just over 200 signatures.
Bass Coast Shire Mayor Brett Tessari told SmartCompany the council had received more than 1,500 direct submissions opposing the development.
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“I guess the community has spoken,” Tessari said.
Councillors also drafted their rejection in anticipation of a potential appeal by McDonald’s to the Victorian Civil and Administrative Tribunal (VCAT).
“[It’s] one that we hope, if it does go to VCAT and is challenged, we will have the chance to stand up,” he said.
Tessari said the proposed restaurant’s location was a major factor in the decision, pointing to its proximity to an aged care facility, a school and one of the area’s busiest roundabouts.
“The amenity of the island was going to be altered by this application,” he said.
Tessari acknowledged the chain restaurant could have hurt local cafes and restaurants, but stressed the decision ultimately came down to planning concerns, rather than protecting businesses from competition.
“It’s a tough time out there at the moment and businesses are doing it tough enough,” he said.
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A supersized backlash
The Cowes decision comes amid growing opposition to McDonald’s expansion across Australia, with other communities also raising concerns about traffic, neighbourhood character and local businesses.
In Melbourne’s Northcote, councillors rejected plans for a 24-hour McDonald’s last November, only for the Victorian Civil and Administrative Tribunal (VCAT) to later overturn the decision.
Greater Bendigo councillors also rejected a proposed outlet near a Strathfieldsaye primary school last year, while Sydney councillors knocked back plans for restaurants in Redfern and Newtown last year.
Community campaigns have also emerged in Castlemaine, Victoria, and Goolwa, South Australia.
McDonald’s can appeal the Bass Coast Shire Council decision at VCAT, meaning its Phillip Island plans may not be off the menu just yet.