Confusion at last month's meeting - where some councillors refused to vote on an alternative motion - prompted the council to hold over a decision on a second store on Mortlake Road.

But at Monday's public meeting they were able to rectify the botched voting attempt and rejected plans for a new store at the Northpoint Shopping Centre site.

While council staff had recommended voting through a new store, Cr Angie Paspaliaris put up an alternative motion to refuse the application which was voted through 6-1.

The $1.8 million 44-seat restaurant was to create 60 news jobs.

Cr Paspaliaris said that while new business was "very much welcome" in the city, busy Mortlake Road was not the right location for another KFC.

"I think the entire area would be very much negatively impacted upon by this type of convenience restaurant," she said.

Cr Debbie Arnott said she was very concerned about the traffic flow and the amount of congestion.

"I think we are all aware of just how large the queues can get around KFC," she said. "I'm all for the refusal of the application."

Cr Ben Blain said the issues raised had been addressed in the officers' recommendations.

"As long as they can fit in and meet the planning requirements of this I don't see why we should be going against it and discouraging a business from opening up in Warrnambool," he said.

Cr Max Taylor said queueing in the car park for the restaurant would cause an enormous amount of chaos.

Cr Richard Ziegeler said the congestion would be "just unbelievable".

"It's one of the worst car parks of any shopping centre in the town," he said.

"The sooner we get this particular project out of the area the better."

Mayor Vicki Jellie said it was just not the place for a KFC because of the traffic.

"The growth corridor since that was designed back in 2004 has just grown," she said.

Cr Jellie said if it didn't have a drive through take-away, the decision may have been different.

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