Food trucks take away local business?

Members of inner Sydney’s business and heritage communities have voiced opposition to the City of Sydney Council’s food trucks policy.

Food trucks have been operating since December 2012 with eight trucks currently plying their trade in the City of Sydney LGA. The trucks park and sell food in any legal car space for no longer than four hours, and must not set up within 50 metres of a comparable food business.

While the Restaurant and Catering Industry Association of Australia has supported the policy, business owners have voiced their widespread disapproal. A petition has started and comprises approximately 200 signatures.

Sue Ritchie, Vice-President of the Darlinghurst and Surry Hills Business Partnership, expressed her concern over the impact of food trucks on local business.

“They have very small costs and can set up business [as] cheaply as they like, without the need to pay rent or rates,” she said. Ms Ritchie said this would place established businesses at an unfair competitive disadvantage.

Adrian Bartels, Chair of the Potts Point Partnership, said the policy was “unfair” for surrounding businesses.

“[Food trucks] have an unfair trading advantage of lower costs, fewer approvals … and the ability to move locations to avoid complaints. These mobile food vending machines take out of the community but do not put anything back in,” he said.

However, a Council spokesperson replied by stating there are many costs for food trucks totalling around $250,000. Council’s stance is that food trucks add to the options for local consumers, especially late at night.

“[Food trucks] are innovative new businesses that add a new layer of economic activity to the city and bring new food options,” said the spokesperson.

Food trucks can operate until 1am on Friday and Saturday night. Council is hoping the move helps facilitate growth of the late-night economy.

But Ms Ritchie said Council was contradicting itself. “If Council claims that food trucks add something at night, that is totally contrary to what they are telling business operators about night-time trading. They are telling us to vacate the streets at night and bring our chairs in. Why should other businesses be allowed to come in?” she said.

The City of Sydney spokesperson highlighted that food trucks are not permitted to trade within 50 metres of similar businesses. “The trucks operate under strict permit conditions,” said the spokesperson. Moreover, they are not permitted to trade on Darlinghurst Rd between Oxford and William Streets.

Nonetheless, Darlinghurst business proprietor Rebecca Goldsworthy said the regulations did not go far enough. “50 metres for small businesses is insufficient and will provide a direct line of sight and is within three minutes’ walk from another location,” she said.

Some residents and businesses are suggesting that food trucks have the potential to create parking and congestion issues.

“There are clearly logistical issues that will arise,” said the President of the Darlinghurst Residents Action Group, Jo Holder. “You will have long vehicles parking in residential spots, which are very hard to come by already.”

President of the Potts Point and Kings Cross Heritage Conservation Society, Andrew Woodhouse raised several issues of residential amenity brought about by food trucks. “These trucks will steal resident car-parks that are often paid for. All this means more noise and public nuisance,” he said.