Food Trucks Creating Challenge for Local Eateries

MIKE MOTZ

Sidney Sun-Telegraph

SIDNEY--Lately, it seems that not only the frequency of food truck vendors setting up in local business parking lots has increased, but the number of vendors has also increased. From burgers to fish, there are many varieties of foods to purchase, and in most cases, customers say the quality of the items is excellent. Most would think that having more choices for food in Sidney is a good thing, but the additional options presented by these mobile eateries can cause problems for established restaurants in Sidney.

The Sun-Telegraph was contacted by a local restaurant owner who had also spoken with other area restaurant owners and many are all concerned about the amount of customers these food trucks are taking away from their brick-and-mortar businesses. Established restaurants that pay property taxes and utility fees are essential for the well-being of a town like Sidney. However, allowing food trucks to operate often gives consumers more choices in meal options, and can be more convenient for some people. Most notable, most of these food trucks offer menu choices that local restaurants simply do not provide.

Many cities have this issue where established brick-and-mortar restaurants that pay property taxes and other fees see their businesses get hurt by an influx of food trucks. In large cities, this is often a big problem as some of these food trucks will be set up right outside of established eateries. Larger cities often deal with this issue by not allowing food trucks to sell similar types of food within a certain radius of brick-and-mortar restaurants. They will also charge Food Truck vendors extremely high permit fees and have limits on the number of permits issued. A city of the size of Sidney generally does not have this type of problem, as there are usually very few food trucks operating within city limits, but the recent increase in the amount of Food Truck and frequency of operation has become a cause of concern for established restaurants.

The Sun-Telegraph contacted City Manager David Scott, who directed us to ask questions to City Clerk Lori Borchert as she manages the permit process for the City of Sidney. From her information, we can report that the current cost for a food vendor permit per day is $30. They also can pay $350 for an annual permit. Vendors must pay all Federal, State, and City taxes, and be inspected and have a Food License through the Nebraska Department of Health. Borchert said the fee amounts are reviewed yearly, and that daily fees were increased in 2019, and the $350 yearly fee was added in 2022.

Borchert said that there are no limits to the amount of days they can operate, as long as the daily or annual permit fees are paid. The city issues an occupation license to display for public viewing. She noted that most Food Truck vendors operate for one day only, and most only operate one day per month, and are seasonal. She also said that all vendors pay applicable federal, state, and city taxes, and along with their license from the NE Department of Agriculture, Food & Safety, all proper documentation must be submitted to obtain a permit.

The Sun-Telegraph also contacted neighboring cities Scottsbluff and Ogallala to find out their process and fee amounts. Scottsbluff, with a little more than double the population of Sidney, has all of the same permitting requirements as Sidney when it comes to taxes and Food & Safety requirements. There is a difference in fees, however. Scottsbluff charges $25 for a weekly permit, $50 for a two-week permit, and $100 for a yearly permit.

Ogallala is closer in population to Sidney than Scottsbluff, and follows all of the same procedures as Sidney when it comes to tax and health and safety requirements. Their permitting fee is different from Sidney and Scottsbluff, as Ogallala only offers a 30-day permit option for $100. Many of the Food Truck operations in Ogallala and the area are seasonal, with most of these vendors located at or near Lake McConaughy.

The Sun-Telegraph contacted Sidney Mayor Brad Sherman about his issue. He said, "I understand the concerns of our local restaurants, as they are paying property taxes and other fees to the city, and we don't want to put them in a position where they are losing significant amounts of business to these trucks. However, these trucks also generate some revenues for the city, and give the residents some other food options, which is a good thing. I think that this is an issue that the council will address in the future to see if any adjustments on fee amounts or permitting processes need to be made."

The City of Sidney faces a commerce challenge with this issue, where the desire to add businesses generating sales tax and permitting fees has to be tempered by ensuring established brick-and-mortar businesses that pay not only sales taxes but a relatively large share of property taxes and utility costs are not hurt by these vendors. Sidney does charge more for permits than other nearby cities, however, the issue of fees and number of days these food trucks are allowed to operate are reviewed annually. We believe that food trucks offering different options than the local fare are a good thing for Sidney residents, however, we strongly urge citizens to visit these trucks as a special treat and remember that our established local restaurants depend upon the patronage of the citizens to keep in business. And these establishments staying in business is a big part of Sidney remaining prosperous and successfully growing into the future.