Local businesses in Sydney’s Inner West are facing potential closure due to a proposal for a new McDonald’s restaurant on King Street in Newtown. The fast-food giant has submitted a $1.7 million application to operate a 24/7 venue at 212-214 King Street, a move that many local café and food outlet owners fear could push them out of business.
Broaster Chicken owner MD Ruben expressed grave concerns about his surviving ability against the immense competition from an established brand like McDonald’s, which generates billions in revenue worldwide and operates extensively in Australia. He noted that despite being struggling already, the arrival of the global chain would be catastrophic, leading him to consider relocating and contacting franchise officials and legal advisors about the impending situation.
The area is no stranger to chicken shops, with six already within a short distance, including popular names like KFC and El Jannah. Ruben fears that introducing a formidable competitor like McDonald’s will significantly decrease his customer base, forcing him out of the market entirely.
Razwan Raza, who runs Ogalo Newtown with his family, echoed Ruben’s fears, stating he might have to sell and seek lower operating costs elsewhere if the proposal is approved. Raza highlighted the disparities in competition when facing large corporations versus independent businesses like his, citing obligations like hefty rent and utilities that already strain their finances. He fearfully considered the prospect of bankruptcy if McDonald’s opens nearby.
Community response has been strong, with an online petition gathering over 770 signatures opposing the fast-food outlet. Local residents are also concerned about potential increases in crime associated with a 24-hour McDonald’s. The City of Sydney is currently gathering feedback on the proposal, which is open until August 7.
In contrast, McDonald’s Australia has expressed enthusiasm about the prospect of joining the Newtown community, promising to contribute economically and provide local employment opportunities. They emphasised their commitment to engaging with local councils and communities to ensure their plans align with community interests.
The proposed McDonald’s is one of several controversial plans across Australia, with other cities like Melbourne also witnessing resident objections to similar 24/7 outlets. Overall, this situation has stirred a mix of fear and hope among local business owners, whose livelihoods hang in the balance as the decision unfolds.