Premier Capital, the licence holder for McDonald’s in Malta and five other countries, has had its permit for a new outlet in Żebbuġ revoked following an appeal by a neighbouring business.

The site got the green light from the Planning Authority in June 2023, and was planned to include a drive-thru, a McCafé, and an underground car park for 33 vehicles.

That permit was not without its detractors, with the Żebbuġ local council representative voting against the project.

However, JM Vassallo Vibro Blocks Ltd, which operates from an adjoining site, filed an appeal before the Environment and Planning Review Tribunal (EPRT), arguing that the application for an “industrial kitchen” was a misrepresentation of the actual project.

In the appeal Raymond Vassallo, representing himself and his company, said that the only reason for filing an application for an industrial kitchen was because planning laws do not allow restaurants and take-aways to be built in the area.

“The intention is, and always was, to have a restaurant or catering establishment,” and not an industrial kitchen, said Mr Vassallo, pointing to plans indicating that the seating area was in fact larger than the kitchen facilities.

In response, Premier Capital Director Melo Hili argued that the majority of McCafé customers use drive-thru, take-away or delivery services, rather than eat in.

The firm’s architect added that only 20 per cent of McDonald’s customers in Malta opt to eat in, citing data gathered locally by the multinational company.

In agreement with Mr Vassallo's appeal, the EPRT concluded that a McDonald’s outlet does not conform to the requirement for developments in the area to be for the use of “light industry”, and revoked the permit.

Speaking WhosWho.mt, a spokesperson for Premier Capital said it still intends to expand in Malta’s central region, “driven by growing consumer demand.”

However, it confirmed that it will no longer pursue the previously proposed site in Żebbuġ.

The company said that the new site, which has yet to be revealed, “forms part of Premier Capital’s expansion strategy with continued investment in its restaurant network across the six markets where it operates – Romania, Greece, Latvia, Lithuania, Estonia and Malta."

In 2025, the group plans to open eleven new McDonald’s restaurants including nine in Romania, one in Lithuania and another in Malta.

Premier Capital said that “alongside this growth, the company remains committed to investing in people, with over 700 new crew members joining its 12,000 strong team this year.”