Weymouth Chamber of Commerce president Paul Appleby said the loss of McDonald's in Weymouth town centre is "an awful shame".
He said he was surprised to hear that McDonald's on St Mary Street in Weymouth is set to close its doors for good next month.
Mr Appleby said: "It is exciting when a large chain opens up as more people come to the town and surrounding stores benefit from the footfall.
"I am surprised because McDonald's almost guarantees customers, it is such a big draw for families and tourists."
The fast food chain announced it will be closing the town centre restaurant at the end of May.
In a statement, McDonald's said that staff at the branch will all be offered jobs at neighbouring restaurants.
A spokesperson for McDonald's said: "We can confirm that our restaurant on St Mary Street in Weymouth will permanently close at the end of next month.
"All of our restaurant crew have been offered the opportunity to be transferred to neighbouring restaurants."
"While we continue to actively grow our estate we do, on occasion, need to consider the future of individual restaurants.
"Sometimes we have to make the difficult decision to close a store, based on a number of factors.
"These can include having opened a new restaurant in the same area 12 months ago."
Mcdonald's on Souter Way in Weymouth opened on May 18, 2022, as part of the Weymouth Gateway Scheme.
The restaurant is part of four McDonald's owned by local franchisee Chris Truscott who owns and operates restaurants across Weymouth and Dorchester.
Following the closure, Mcdonald's still has restaurants locally at Souter Way and Jubilee Close Retail Park in Weymouth.
Mr Appleby added: "Mcdonald's always has a high-quality commercial space with a modern finish.
"Hopefully someone big can move in and surrounding shops won't have to suffer from the loss of footfall.
"Another fast food chain could have a relatively soft landing by moving in, maybe Burger King."
Cllr Tia Roos, Melcombe Regis councillor, said: "I am surprised at this news on one hand because every time I’ve visited that restaurant it seems to be very busy but I’m also not surprised because they have two restaurants in town and they are likely to be just as busy.
"I hope they support any staff with this closure so that they may find work in the other branches or in other positive working roles."
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