Won't Someone Think of the Food Trucks!
On the 2nd of October, the Central City Business Association presented a petition to the Christchurch City Council sharing their shock and concern at the Arts Centre request to allow 33 food trucks to operate on their premises seven days a week, twelve hours a day. In a deputation to the Council, they effectively ask that, as existing businesses, they are entitled to have a say on what competition is allowed. You can read more from The Press.
Like many, we've been watching the city’s food truck debate with great interest. As we're concerned with the vibrancy and equity of our city, we are shocked at the anti-competitive nature of the Central City Business Association’s petition presented to Council earlier this week. Such opposition to food trucks flies in the face of all evidence on the impact of food trucks on local businesses and the city. Research has found that food trucks are beneficial both economically and socially, and that they can benefit existing businesses, including those represented by the CCBA!
In response to the Arts Centre requesting a high number of food trucks, indicating strong demand, as well as the CCBA’s members feeling threatened by them, a pragmatic response would be to:
- Review ratings policies to ensure that it is fit for purpose so food trucks and brick-and-mortar businesses can compete on a level playing field with no rates-based advantage.
- Following strong evidence, as well as high demand for food trucks within the city, review the city’s current unnecessary and economically unproductive food truck policy.
Food Trucks are Good, Actually.
While naturally, established businesses like those the CCBA represent will be concerned at the prospect of competition, it is something the Christchurch City Council should see as a reflection of our central city’s increasing economic prosperity and vibrancy, despite poor economic conditions.
Despite the anti-competitive messaging, they do ask a fair question — does the rating system currently provide an unfair advantage to food trucks? This question is fair and should be investigated, including within the soon-to-be-reviewed Development Contribution Policy.
With the strong evidence, demand and growth of food trucks in mind, the Council should see this as rationale for policy change. For instance Peterson (2014) found that food trucks increased the vibrancy and activity of urban spaces, as well as intentionally operating away from existing restaurants to meet unmet demand. Furthermore, Carpenter II & Sweetland (2023) found that food truck restrictions can be unnecessary and potentially economically unproductive with the number of food trucks being positively correlated with the growth of brick-and-mortar establishments. Food trucks offer a very low bar for entry as opposed to brick-and-mortar stores, especially niche food offerings that are unlikely to be economically viable, such as those of ethnicities with small populations. Ehrenfeucht (2016) finds that street vending might not primarily compete with brick-and-mortar eateries, as the service they provide offers a different purpose and amenity, often for different needs, with less selection, fewer goods, limited seating and no protection from the weather. From recent evidence, there is a strong basis to claim that enabling food truck policy is near universally positive, while the current restrictive policy is negative. Unfortunately, current food truck policy has made it too difficult for entrepreneurs willing to invest in our city and add to its activity, vibrancy, and choice for consumers.
Summary
In short, opposing new food trucks in the central city is simply anti-competitive, limits economic development, continues to keep the bar of entry to invest in the city high, as well as limiting vibrancy and urban revitalisation. Scholarly evidence shows that there is no need for brick-and-mortar businesses to worry about increasing competition from food trucks— in fact, they should welcome it.
Food trucks are complementary to brick-and-mortar businesses, increasing spending, visitor numbers and revitalising poorly used urban areas, potentially opening those areas up to development. Because of this, the Council should mature our 'food truck economy' by ensuring that the rates system is fit for purpose by avoiding any unfair advantage. Additionally, current policies on food trucks are far too restrictive to gain from their well-researched benefits. We should aspire to live in a city where food trucks can open where there is unmet demand, so that the community can connect, grab a bite to eat and enable aspiration and innovation in our local food industry. The current system is far too restrictive and scholarly work from the past decade has provided a great deal of information on how to create effective food truck policy— the time to enable it is now!
Member discussion