Fast food giant McDonald's demonstrates remarkable persistence when facing community resistance to new store openings, with experts revealing the company is prepared to wait years to achieve its expansion goals despite local objections.
The Northcote controversy
This strategy was recently highlighted in Melbourne's Northcote suburb, where Darebin City Council rejected plans for a 24-hour McDonald's outlet following passionate community opposition. Councillors voted 6-3 against the proposal despite a McDonald's representative describing it as "modest and efficient" during local council proceedings.
The decision came after residents submitted a petition containing more than 11,000 signatures opposing the development on trendy High Street. However, the council's rejection sets the stage for a potentially costly legal battle, as McDonald's has confirmed it intends to pursue all available avenues to progress with the site, including appealing to the Victorian Civil and Administrative Tribunal.
The long game strategy
Dr Liz Taylor, a senior lecturer in urban planning and design at Monash University, explains that McDonald's success often stems from its ability to outlast community opposition. "They're very organised, very strategic and very well-resourced," she says. "They always have very high-paid lawyers working for them and they're prepared to wait years."
Taylor notes that community groups typically burn out after a couple of years of fighting development proposals, while McDonald's maintains its persistence. The company may make minor compromises regarding traffic concerns or other issues, but rarely abandons expansion plans entirely.
Mastering planning regulations
McDonald's has demonstrated exceptional skill in navigating and even influencing planning systems to facilitate its growth. In Victoria during the 1990s, the company successfully lobbied the Kennett government to amend metropolitan planning schemes in ways that benefited fast food operations.
"In 1994, the definition that came in across the state for 'what is a restaurant' was specifically worded to include takeaway restaurants," Taylor reveals. "The amendments were prepared specifically at the request of McDonald's Australia Limited."
The company continues to use planning loopholes strategically, such as obtaining complying development certificates through private certifiers rather than submitting development applications to local councils. This approach allows McDonald's to bypass potential community opposition during initial approval stages.
Legal battles and real estate advantage
With over five decades of Australian operations since 1971, McDonald's has extensive experience fighting planning battles through legal channels. The company's victory in Tecoma, despite significant community protests including a two-week sit-in, demonstrates its determination.
Garry Murratore, a Tecoma activist who fought the development, claims McDonald's acts as though "they just feel like they're above the law." His group has since advised more than 60 organisations facing similar McDonald's expansion attempts.
Property records reveal McDonald's substantial real estate investments, having spent over $36 million on NSW properties alone in the past five years. Professor David Nichols from the University of Melbourne suggests the company may be shifting from traditional franchise models toward owning more property, similar to its approach in the United States.
Nichols describes McDonald's expansion strategy as a "domino approach" aimed at creating comprehensive networks with minimal gaps between outlets. "They're bigger than anyone else," he notes. "Sure, they can retreat occasionally, strategically, but maybe they can just keep their powder dry and come back later."
Despite ongoing community resistance in various locations, McDonald's maintains approximately 85% of its Australian stores are operated by more than 200 franchisees, with the company typically preferring to own the land where restaurants are built.
