CHICAGO (Feb. 22, 2017) – This morning, the Chicago City Council approved a reduction in startup costs and fees for food cart vendors, a tremendous step forward for the burgeoning industry. The changes to the food cart ordinance were supported by Illinois Policy Institute, which partnered with Alderman Roberto Maldonado and food cart vendors to make the case for the change.

Food carts have been popular in Chicago for years, but only gained legal status in 2015. Researchers at the Illinois Policy Institute determined as many as 1,500 food cart vendors were operating in the city at that time. Legalization should have been a boon for the industry, but since aldermen passed the original food cart ordinance in 2015, only five businesses applied for and received mobile food vending licenses. Many vendors have said the city’s regulations and licensing fees were cost-prohibitive for the entrepreneurs, many of whom are Hispanic and come from low-income areas, and are looking to support their families through food cart vending.

“Food carts have long added to Chicago’s rich culture, but the cost of starting a food cart business and licensing fees are burdensome. The ordinance that passed City Council today works toward fairness for vendors,” said Chris Lentino, manager of Chicago outreach for the nonpartisan Illinois Policy Institute. “By allowing food cart vendors to operate more freely, this new ordinance will help many of Chicago’s low-income entrepreneurs fulfill their dreams of owning a business.”

The Illinois Policy Institute and Maldonado, 26th Ward, have worked together with food cart vendors on this issue since 2015.

“I have heard from food cart vendors, many of whom are my constituents, that it is too expensive to do business in the city; so I wanted to do something to help,” Maldonado said. “This ordinance is a tremendous step in the right direction, but it will not eliminate all of the issues facing food cart vendors. I hope we can continue to work with the city to create laws that benefit everyone.” 

The ordinance reduces the cost of two-year food cart license to $100 from the original rate of $350. Seniors, veterans and food cart owners who have disabilities will pay just $50. In addition, the sharked kitchen user fee has been eliminated for owners with a food cart license, saving vendors between $75 and $350. The changes align Chicago’s food cart startup fees with other major cities, such as New York City and Boston.

The new rules will go into effect July 1, 2017.

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