By: Sara Faiwell, Daily Herald Staff Writer

October 4, 2005, Chicago Daily Herald

A fight is brewing between two giants vying to have a stake in Wauconda.

Starbucks wants to open a store near routes 176 and 12, but McDonald's doesn't like the idea.

Dallas-based Fritz Duda Co. has been working for nearly 10 months to bring the coffee shop to Liberty Square shopping center. But McDonald's, which owns property in that center on which it operates one of its restaurants, has restrictions against other eateries coming in.

Only one restaurant up to 26,000 square feet is supposed to be in that part of the shopping area, according to the restrictions.

A Subway takes up 1,000 square feet there now, so Fritz Duda thought putting in a coffee shop wouldn't be a problem for McDonald's. It has proceeded with electrical work in recent months.

But the fast-food company has said it doesn't want to amend the restrictions for Starbucks.

Village leaders and Fritz Duda say Starbucks is not a restaurant so it shouldn't matter.

"To say I'm upset about this is an understatement," Mayor Sal Saccomanno said. "McDonald's is flexing their corporate muscle here to try and keep Starbucks from this area."

Saccomanno said he has asked McDonald's to reconsider.

"We need Starbucks here because it will open the door for other nationally known businesses to come to Wauconda," he said.

Recently McDonald's cited traffic concerns and a lack of parking spaces as to why the coffee shop should not open there.

A McDonald's spokeswoman said the company entered into an agreement that governs the traffic flow and parking in the Wauconda shopping center and it doesn't want to change it for the best interest of its customers.

"McDonald's wants to continue to abide by this agreement, to protect the ease of access to the restaurant for our valued customers," said Lynn Williams-Miller, the restaurant's Chicago- area real estate manager.

David Besanko, a Northwestern University professor of business management and strategy, said Starbucks and McDonalds co-exist in many areas.

"I've never seen a case where McDonald's has tried to block another franchise from moving into a close proximity," he said. "But it's understandable that they would fight this."

Suzanne DeChant, a group marketing manager for Starbucks, said, "We are always looking for new places where people can appreciate a great cup of coffee.

"Wauconda is certainly one of those places and we look forward to having a Starbucks in Wauconda in the near future."

The village's chamber of commerce director said McDonald's should have more faith in its patrons.

"It is very unfortunate to have a business that is blocking our economic development instead of supporting it," Chamber Director Debra Ogorzaly said.

Dominic Signoretta, a vice-president for Fritz Duda, said his company plans to keep pursuing a Starbucks in the Wauconda shopping center.

"We've invested a lot of money in this, anticipating that we weren't going to have a problem," he said.