On 28 October 2015, The Adelaide City Council voted to reduce the number of food truck operators from 40 to 30 and increase fees to $2,500 per year. The number of food trucks permitted to trade in the CBD before 6pm will also be limited to 10.
R&CA CEO John Hart says the changes will ensure temporary and existing food businesses can coexist while offering consumers greater choice.
"The dining scene is changing with food trucks offering quick, simple and cost effective meal options for consumers.
"When effectively integrated with bricks and mortar businesses, food trucks offer consumers greater choice, activate precincts, and support major events and festivals.
"However, uncontrolled growth in permit numbers, reduced permit fees, waived outdoor dining costs and less stringent compliance checks mean food trucks can cannibalise restaurant business and undercut already thin margins," says Hart.
An R&CA member survey revealed 70 per cent of operators believed their revenues had been negatively impacted during the 'Mad March' period as a result of significant increases in food truck operators during this period.
"Some operators reported losses of up to $50,000 over the six week period compared to previous years. This can equate to a 30-50 per cent reduction in trade. The consistent factor has been food trucks that until now did not have the same overheads as established businesses," Hart says.
"The industry has consistently raised concerns over temporary operators profiled during the Mad March period. Foregoing the proper checks and balances to ensure these stallholders meet the minimum health and safety, payroll, and insurance requirements creates an un-level playing field between transient and established businesses.
"We need to ensure that the cost of compliance is met by all, not only a few, if the sector is to remain sustainable and competitive," Hart says.
"We are pleased the council has listened to the concerns of industry and ensured everyone gets a fair go," Hart says.
