McDonald's to close

McDonald's is leaving the Strand Arcade after 21 years in the Whangarei food court. Photo / John Stone

Declining footfall and early closing hours at the Strand Arcade have been blamed for the departure of McDonald's restaurant from the food court at the end of this year.

The lease for McDonald's, which has been in the arcade since it opened 21 years ago, expires in the last quarter of this year and won't be renewed due to what the fast food giant stated was "changes in local dynamics and customer preferences".

Simon Kenny, head of communications for McDonald's NZ, told the Advocate that while the staff consultation process had not commenced, all 13 staff at the restaurant would be offered roles at the other Whangarei outlets.

"McDonald's has decided not to renew the lease on the Strand Arcade food court location when it expires later in 2015. We will be consulting with the crew who work at the food court over the next few months, offering them roles at the Bank St or Kamo restaurants," Mr Kenny said.

"McDonald's regularly reviews its restaurant locations and changes in local dynamics and customer preferences. We remain committed to our presence in Whangarei and the wider Northland region."

The restaurant was shutting down for good, not relocating, he said.

Manager of the Strand Arcade, Merv Williams, said the CBD was contracting and feeling a squeeze and Strand tenants had suffered the impact of declining footfall in the CBD and a 6pm closing time for the Arcade.

"It's a reasonably depressed environment," he said.

Eight of the 40 stores at the Strand were vacant but he was confident the departure of McDonald's would not impact the remaining tenants or their view of the Strand.

"We are always concerned but business is a changing environment. You can never be too confident.

"Their business [McDonald's] has changed ... they have a demand for a variety of cafes and a 24-hour operation," he said.

"They want a higher footfall too."

Mr Williams said the Arcade was in negotiations with a potential new tenant, however, he could not comment on the identity of the business.