Broken Permitting System Forces NYC Food Trucks Into Black Market
NEW YORK CITY, NY - Running a food truck may be the hippest job around. But there is a shadowy side to food trucks’ fun and quirky image.
In order to get started, many of these gourmet trucks flout the law, and pay high prices to obtain black-market vendor permits. They say they have no choice.
Ed Song is a part of the new wave of gourmet trucks. Together with two friends, he started Korilla, a group of three bright orange trucks that sell bulgogi, burritos and tofu tacos.
Speaking from his office in Ridgewood, Queens, the spiky-haired 26-year old sporting a Mickey Mouse T-Shirt said he decided to start a food business shortly after graduating from Columbia with a degree in economics and mathematics.
It was the year Bear Stearns and Lehman Brothers failed, and striking out on his own seemed like the best path.
“All the jobs in finance were all drying up. And so I decided to take the opportunity to do what I wanted to do. And follow a passion,” said Song, whose parents emigrated to New York from South Korea.
Then Song discovered the fact that confronts every new food truck entrepreneur: to sell prepared food on the streets of New York City you need a permit. It’s a little bit like a driver’s license, authorizing the holder to be on the road.
A Mobile Permit Road Block
There are only 3,000 citywide, two-year permits, and there are so many names on the wait list (more than 2,000) that the Department of Health hasn’t taken names since 2007.
“There really is no legal channel to go through to obtain a permit,” he said.
So Song (right) turned to a middleman for the permit for one of his three trucks (the other two permits he obtained by going into partnership with existing permit holders).
Recalling his first contact with the middleman, Song said “it was scary. You’re giving them a lot of hundred dollar bills without a receipt. It’s just the nature of the business.”
After an initial down payment, Song took the truck to the Department of Health for inspection, and when it passed, he paid the balance and received the white sticker that’s now on the side of the truck. In total, it cost about $20,000.
Several others in the food truck business confirmed the existence of a large and robust underground market for permits. But only Ed Song allowed his name to be used.
One popular vendor told WNYC anonymously that turning to the black market went against her instincts, as someone who’d worked in a variety of retail and service businesses.
“All the other jobs or businesses I was involved with were much more straightforward in terms of paperwork or how you get a license for something,” she said.
Vendors say the city’s Health Department does a thorough job of checking sanitary conditions in trucks. And traffic police frequently chase trucks out of spaces where vending is not allowed. But by ignoring the trade in permits, the Health Department forces them into the black market it claims it’s trying to eliminate.
It’s not known how many trucks operate under illicitly procured permits.
Song isn’t even sure whose name is on the permit he uses, and treats as his own.
“I could try to remember. I do have his name somewhere,” he said. “I don’t think this person even lives in New York City.”
Find the entire article by Ilya Marritz at wnyc.org <here>











They need to loosen the restrictions and demands on food trucks! I’m loving the food truck movement in NYC, but why are we stopping its growth?! Who doesn’t love cheap, delicious, mobil food? To my fellow food truck enthusiasts in the NYC area, check out this site that allows users to place orders for pick-up from food trucks and not have to stand on those annoying lines. Awesome idea (I use the site basically everyday for lunch). Enjoy, ladies and gentlemen, I hope as much as I do!
As a Mobile Food Consultant based out of New York City and Philadelphia, my job is to get people operational with a Mobile Restaurant without them breaking their bank!
In New York City the Health Department is very aware that these licenses are sold on the black market. Food Associations and advocates in NYC need to come together to force the Health Department to go after people selling illegal permits as the Health Department has done in the past.
What needs to happen is when these permits expire, The Health Department needs to force the permit holder to present documentation, i.e. tax returns, proof of truck income etc. showing they are useing these permits themselves!!! If not that permit needs to be revoked and given to someone who is on the Waiting List and that is going to utilize it for their livelihood. THESE PERMITS ARE NON-TRANSFERABLE! Greedy people are holding on to them, and making thousands on these permits as if it is LEGAL! I would guess 50% of these food trucks are working under ill-gotten licenses!
When the Health Department inspect the trucks, and have to give out tickets; that ticket should be written in the name of the owner of the permit! We need to organize a class action suit with the people on NYC wait list and sue the Department of Health for knowing allowing Food Vendors licenses to be sold on the black market!
New York City is the only city that turns a blind eye to illegally sold licenses!!! It is embarrassing as most people are aware that you have to basically engage in illegal business if you want to operate a Food Truck in NYC. I advise people to operate outside of the city. There are plenty of bordering towns and cities where the Food Business is thriving!!!!!! As a Mobile Food Consultant, I should not have to suggest another City!!
Laura Burrell
Mobile Food Consultant
http://www.discountfoodtrucks.com
267-738-1656