Could Blockbuster Video really be considered an eating establishment? How about Rite Aid Drugs? Or the local candy store?

Some Larchmont Village neighbors and merchants insist they are.

It’s an issue at the core of a battle brewing between local residents and property owners over how many restaurants, fast-food joints, sidewalk cafes and other food-dispensing stores should be allowed on the popular two-block stretch between Beverly Boulevard and First Street.

Residents are afraid that the charming boulevard lined with trees, sidewalk cafes and small shops will start to resemble a mall if the number of “eateries” isn’t limited.

“We love the restaurants. We like the ambiance. But there is great concern that it is going to turn into a food court,” said Michael Cornwell, who has lived in the area for 30 years and would like to see a restaurant restriction.

Many of the landlords and merchants who remember when as much as 20 percent of Larchmont Village’s retail space was sitting empty eight years ago believe it’s better to let the market dictate what comes and goes.

Larchmont Village isn’t alone in trying to figure out the right balance between restaurants and other types of retail establishments. Other popular commercial neighborhoods have been plagued with the same dilemma.

Montana Avenue, once a sleepy street filled with mom-and-pop stores in Santa Monica, is now jumping with chic restaurants, cafes, coffeehouses, catering companies and high-end boutiques. Neighbors aren’t happy with all the traffic and noise and would like to see a limit put on restaurants in the area.

In Long Beach, merchants and residents around vibrant Second Street in Belmont Shores are debating how many eateries should be allowed on the thoroughfare that is already crammed with food establishments.

Now Larchmont Village is grappling with the issue of how many restaurants are too many.

Ten years ago, everyone thought the problem was solved in Larchmont Village. The city of L.A. came up with an ordinance called the Q condition. It set a limit of 10 restaurants on the two-block area, but with a loophole. It permitted an unlimited number of coffeehouses, juice bars, bakeries and take-out places.

That seemed fine until national chains like Noah’s Bagels, Starbucks Coffee, Jamba Juice and others started to infiltrate. Some were setting up tables and chairs on the sidewalks and acting like small restaurants. Local residents counted 26 food services in the area, if you included Leonidas Belgian Chocolatier, Blockbuster Video, Larchmont Village Wines & Spirits, Rite Aid Drugs and the Great Earth Vitamins store.

They decided that was too many, and four years ago asked their city council representative, the late John Ferraro, to clarify the situation.

Only now is the issue making its way to decision-makers, with a resolution still months away. A hearing was held on Aug. 9 at the city Planning Commission, which has asked the Planning Department to study the issue.

But it may not happen before the end of the year. Ferraro died in April. An election to fill his council seat is being held Sept. 11, with a runoff scheduled for Oct. 23.

The Windsor Square Association, a local homeowners group, wants to limit the number of “eating establishments” to 25, including juice bars, bagel shops and coffeehouses. It also would like the city to more clearly define the category for such non-restaurant establishments as Blockbuster Video and Rite Aid Drugs.

“The question is, how does the city come up with a guideline that is clearly enforceable?” asked attorney John Welborne, a local resident and board member of the Windsor Square Association.

Local landlords worry that putting a cap on restaurants would establish a de facto barrier to non-food establishments. If they abandon their restaurant rights, they may not be able to lease to food services again. “It could lead to hoarding,” said Thomas Kneafsey, a property owner and president of the Larchmont Village Business Improvement District.

The city Planning Department is leaning toward limiting restaurants to 25 eateries, said David Gay, principal city planner. But only places inspected by the county health department would be included in the count, which excludes places like Blockbuster Video.