In a letter sent to nearby traders and residents this month, real estate development manager Paul Vallay said the outlet would "service passing traffic and local residents".

"Other retailers and businesses within the Knoxfield activity centre will benefit from the exposure and activity resulting from a new McDonald's restaurant," the letter said.

Mr Vallay said the new restaurant would create about 100 jobs.

McDonald's acknowledged that Knox Council would prefer the site to be used for a medium-density residential development, but it had lodged a planning application, he said.

The company said it was prepared to install traffic speed humps on Kathryn Road to "maintain a quiet street atmosphere" and install a three-metre landscape buffer around the perimeter of the building.

Friberg Ward councillor Andrew Walter said the development was at the planning stage, and he didn't want to pre-empt plans.

He said he would consult residents and traders before commenting on concerns about increased traffic flow.

While most Knoxfield traders were reluctant to speak on the matter, John and Joy Quinn, who operate a fish and chip shop, said they would welcome the competition.

"We cater to a different market," Mr Quinn said. "People will eat what they feel like. It won't make a difference at all. It can only be good. I'm all for anything that generates business."

However, Knoxfield resident Ian Simpson said he had reservations about the plan. "I think it's in the wrong place. They want to put a McDonald's there to get all the kids there from the skate park."

However, Mr Simpson said many residents were yet to form a position, and McDonald's had done a lot of good in the community.

Knox Council confirmed it had received a planning application, which its officers were assessing.

Vote in our McDonald's poll, top right.