Local government structures typically allow for public hearings to debate issues of property use, particularly if there are variances sought to any local zoning laws.
In the example mentioned, it sounds like the business owner who wants to open the restaurant is either in a residential-zoned area or next to a residential-zoned area. So the city council (or other form of city government) would schedule a public hearing to allow views to be expressed on both sides of the issue before determining whether to grant the business owner a permit for his new business in that location or not.