CHICAGO (Feb. 8, 2017) – Chicago aldermen will discuss lowering business startup costs for food cart vendors at a joint Chicago City Council committee meeting Wednesday. These changes are part of a business license reform package proposed by Mayor Rahm Emanuel.

The mayor is proposing the following for food cart vendors:

• Reducing the cost of a two-year business license to $100, from the current rate of $350. Veterans and the disabled would have access to an even lower rate of $50.  

• Eliminating the cost of a “Shared Kitchen User” business license for those with a food cart business license. It currently costs $330 for a two-year license.

• Eliminating the cost of a business license for a short-term “Shared Kitchen User.” This currently costs $75.

The Illinois Policy Institute enthusiastically supports these facets of the mayor’s proposal. These changes would align Chicago’s food cart startup fees with other major cities. In New York City, food cart permits cost less than $100 per year. In Boston, the annual cost of a mobile food permit is $62.

The Joint Committee of the Committee on License and Consumer Protection and the Committee on Zoning, Landmarks, and Building Standards is scheduled to discuss the matter at 11 a.m. at City Hall. If the proposed changes are approved, the measure will then face a full City Council vote on Feb. 22. The changes in this ordinance would be effective July 1, 2017.

“The City Council should absolutely reduce the cost of opening up a food cart business. Right now, it’s extremely difficult for low-income entrepreneurs to open a food cart business in Chicago because the licenses are so expensive. If City Council enacts these changes, the cost of becoming licensed would drop by more than half for some applicants, and it would also encourage the opening of more shared kitchens,” said Chris Lentino, manager of Chicago outreach at nonpartisan Illinois Policy Institute. “These proposed changes are a tremendous step in the right direction. Allowing food cart vendors to operate more freely will bring jobs and tax revenue to Chicago – and it will allow many entrepreneurs to live out their dream of owning their own business and sharing their culinary talents with their communities.”

According to an economic impact report by the Illinois Policy Institute, Chicago could spur 6,400 new jobs and up to $8.5 million in new local sales tax revenue by legalizing food cart vendors. But as of December 2016, Chicago had only licensed five food carts – namely because the licenses are so expensive.

Maria Mendez, owner of two Yolis Tamales food carts in the Back of the Yards, said that’s why the mayor’s proposal is so important. Mendez has worked closely with the Institute to advocate for food carts.

“Food carts have a long history in Chicago communities. We feel proud to now have the freedom to operate our businesses. But at the same time, I feel sad for people who still struggle and have not been able to get the license because it costs too much,” Mendez said.

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