No change to fees for food trucks despite vendors’ concerns

A lone food truck served Tuesday’s meagre lunch crowd on City Square plaza.

Ken and June Kovacs were inside making the same Coney Island poutine offered at their Dewdney Avenue restaurant. The couple only got a handful of customers that day. But they still weren’t dismayed by news that their annual licensing fees will stay at $1,680 this year.

June admitted that view won’t make her popular among other food truck vendors.

“There’s a cost to doing business and I don’t find it outrageous,” she said. “I really don’t.”

Neither did Regina city council, which voted Monday to hold the line on the licensing fees. They rose from $1,400 midway through last year, as council tried to fill funding gaps left by provincial budget cuts. Fees surged even more for hotdog stands, tripling from $550 to match other mobile food vendors.

Otto Gajari, who owns three Queen City Footlong carts, said that’s $3,000 out of his pocket.

“They’re pulling the money out of my family,” he said.

At Monday’s meeting, city manager Chris Holden presented a report acknowledging concerns from vendors. He admitted there might not have been “due diligence” in looking at the impact of last year’s quick decision.

The city has issued only five food truck licences so far in 2018, though it recently received an application for a sixth.

That compares to 10 for all of last year. Holden said there’s been no reduction in licences for hotdog carts.

He recommended council wait until next year to consider changes, as part of the 2019 budget process.

Councillors concurred, but some called for a gentler approach down the road.

“I would like to see in the future a gradual increase rather than the big jump,” said Coun. Lori Bresciani.

Only Coun. Jerry Flegel voted against Holden’s recommendation, instead calling for immediate action. He noted that reversing the hike would cost little: About the value of one licence overall. That’s a price he’s willing to pay for a more vibrant City Square Plaza.

“There used to be five or six out there, and we’re doing the residents and the neighbourhood a disservice,” said Flegel.

Jim Schinborn of J&P Concessions agreed that the fee hike risks deadening the downtown. He’s taken his concession stand to the plaza a few times this year. He said there’s been a lot less food truck activity there, compared to years before. That’s bad for business, Schinborn said, comparing it to a fair with a single ride.

“When there’s a bunch and it attracts a crowd, everybody gets some business,” he said. “But when you’re standing there all alone, it’s just crickets.”

Schinborn said he hasn’t made back the cost of his licence so far. “I ain’t doing so good,” he said, though he expects to make up the difference at other events. He doubts the fees will drop next year, and said he’ll have to look at his budget to decide if he’ll reapply for 2019.

The Kovacses look at things differently. They also run a brickand-mortar restaurant, and view the licensing fee as a fair rental price that levels the playing field. Holden’s report noted that licensing fees held steady for years while property taxes for restaurants steadily mounted.

June said that’s right, and commended the city for its approach.

“They ’re lovely to deal with. You get power, you get an awesome opportunity and an awesome platform,” she said. “I don’t know what all the outrage is about.”