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Wednesday, October 21, 2026

McDonald's bid for Phillip Island restaurant knocked back by council

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Artist render of a McDonald's restaurant.

Plans have been submitted for a proposed McDonald's restaurant in Cowes, on Phillip Island.  (Supplied: Bass Coast Shire Council)

In short:

Bass Coast Shire Council has rejected a bid by McDonald's to open a restaurant on Phillip Island. 

The application drew an angry response from members of the Phillip Island community.

What's next?

McDonald's can appeal the decision to the Victorian Civil and Administrative Tribunal.

An application by McDonald's to build a restaurant in the Victorian tourist hotspot of Phillip Island has been rejected after councillors voted to refuse it a planning permit. 

The fast-food giant lodged its application earlier this year with the Bass Coast Shire Council to build a new restaurant in Cowes, which has a population of 6,593.

But councillors unanimously voted to reject the application, saying it was inconsistent with the local planning scheme.

Image of a room packed with people sitting in the audience.

The public gallery was full at Bass Coast Shire Council's meeting. (ABC News: Madeleine Stuchbery)

Island ward councillor Tim O'Brien said the proposal failed the community "on so many levels". 

"Where is the community benefit?" Mr O'Brien said. 

"This will be muscling its way into a part of a market it had no part in building." 

Councillor Mat Morgan, who is a Greens candidate at the upcoming Victorian election, said the application "should obviously be rejected" because of inappropriate residential development. 

"There are a thousand ethical and moral reasons to throw this in the bin," he said. 

"We don't want this, we don't need this."

Image of a group of people, happy and with thumbs up.

Island residents celebrate after Bass Coast Shire council's rejection of the planning permit. (ABC News: Madeleine Stuchbery)

'Just so wrong'

The proposal raised the ire of thousands of residents, with more than 5,800 people signing a petition rejecting the proposal, citing traffic concerns and the threat to small businesses in town.

The no vote came after a recommendation by council officers to grant McDonald's a planning permit, which they found "acceptable" after assessing it against the planning scheme.

Councillor Jan Thompson told the meeting that the decision would likely be overturned on appeal to the Victorian Civil and Administrative Tribunal (VCAT), but voted to reject the application anyway. 

Three people stand at a market stall with a sign "Say No To McDonald's in Cowes"

The plan to build a McDonald's on Phillip Island has angered some community members.  (Supplied: Say No To McDonald's Cowes group)

The council received 1,543 objections and 32 submissions relating to the McDonald's application. 

The proposed site is home to a petrol station and a vacant plot of land.

A photo of the street of a seaside town, with cars parked parallel to shops, with a tree, ocean and sky in background

Cowes is the main township on Phillip Island. (Supplied: Bass Coast Shire Council)

Cowes resident and business owner, Trevor Ware, said the community's concerns were heard by the council in rejecting the proposal. 

"We didn't need this and I think the community has done very well to fight it," he said. 

Image of a man with long hair and a blue shirt with hands on his hips.

Trevor Ware says the community has been heard.  (ABC News: Madeleine Stuchbery)

"There's still a big track ahead and [McDonald's] are going to push very hard. We just can't let it just ride through. 

"The way it's been approached and the area that they put it in so close to the school, everything was just so wrong."

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