A sign on the window notified customers the Dimboola Road store was closing.

The fast food outlet is owned by Red Rooster, not a franchisee.

A statement from Quick Service Restaurant Holdings, owner of Red Rooster, based in Perth, did not explain why the Horsham store had closed but said:

"Effective March 5, 2012, Red Rooster Horsham, Victoria, ceased to trade.

"Former employees will receive their full entitlements and any wages they are owed and will be offered alternative employment at the closest Red Rooster Company owned store, should they wish to pursue it.''

The nearest Red Rooster is in Ballarat.

Horsham Rural City Council's corporate and economic development manager Tony Bawden said the news was disappointing for Horsham.

"Any closure obviously equates to lost jobs," Mr Bawden said.

"But at the same time, without knowing the circumstances and whether there are possibilities of expansion at the site, we don't know what the impacts will be."

Mr Bawden said the council definitely hoped the site would attract further development.

"Once we understand what's happened, either our staff or Wimmera Development Association will reach out to see if there's anything we can do to help," he said.

What do you think should replace Red Rooster or occupy the Dimboola Road site? Comment below.