However, the city has a 1998 law banning new drive-thru restaurants. In-N-Out challenged that law and the city council modified it to allow new franchises, but didn't include Del Obispo Street. Officials say they already have enough fast food restaurants on that street. In fact, it's called fast food alley by locals.
SAN JUAN CAPISTRANO, Calif. --Plans to open a new In-N-Out burger in San Juan Capistrano have been scrapped. Officials had hoped to build a drive-thru restaurant on the 31000 block of Del Obispo. The site used to be a former Sizzler restaurant.