Taco Bell WON'T open in Gateshead - because the council thinks the town's kids are already too fat.
The American fast food firm wanted to open near the Metrocentre.
But Gateshead Council has stopped the "unhealthy" chain opening due to the area's high obesity rates.
And the authority says no new fast food chains - or takeaways - can open until that's slashed.
Forty new jobs would have been created at the restaurant, which was announced last May. A Newcastle city centre branch opened in 2018.
Nobody objected to the restaurant filling the former Frankie and Benny's unit in Clasper Way, although it sparked controversy by wanting to open until 4am.
But despite previously granting the firm a licence, Gateshead Council later rejected a planning application.
A report outlining the decision states: "Uses will not be granted in wards where more than 10% of Year Six pupils are classified as obese.
"Blaydon ward has a Year Six obesity level of 19.7%, which is higher than the aspirational target of 10% set by the council."
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It adds a fast food restaurant is "contrary to the objectives of maintaining and improving the health and wellbeing of local communities."
"The proposal would represent inappropriate development given that it would lead to increased access to an unhealthy eating outlet."
Last year, Gateshead had the highest rate of severe childhood obesity in the region
By Year Six, over one in three children in the borough are either overweight or obese - and the majority of adults are too heavy.
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A Gateshead Council spokesperson confirmed the council's policy is to now stop any new takeaways or venues selling junk food from opening until that figure improves.
A spokesperson added: "A licence was granted, with a number of mutually-agreed amendments and conditions, in July 2018.
"However, their application for planning permission to develop the former Frankie and Benny’s restaurant was refused.
"The applicant has not appealed the decision."
Taco Bell has not yet stated whether it intends to appeal.
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