The New York Times has produced a fascinating story about turf wars among the city’s food cart vendors, particularly clashes between the traditionally immigrant-run carts and trendy new arrivals. Like in DC, New York set a cap on the number of cart permits. Yet while DC’s cart scene slumped into mediocrity under the city’s burdensome regulations, entrepreneurial New Yorkers worked out their own extralegal ways to operate:
The city, other than blocking certain streets entirely and enforcing parking regulations, does not dictate locations for food carts. But spots are virtually owned by vendors who have worked them for decades; they are handed down within families and even sold on the black market. [...]
Vendors say that the traditional code of the streets may be effective, but that it feeds on fear, intimidation and the city’s lack of enforcement of permit rules.
“It only works because everyone is a little bit in the wrong, and no one is 100 percent clean,” said Mr. Lao [a new cart owner]. “We can’t go through legal channels to resolve our disputes.” Mr. Lao was referring to the notorious black market in the food vendor permits issued by the city’s Department of Health. Most of the vendors interviewed would not talk publicly about the status of their permits. But several of them, asking not to be identified because of the dubious legality of the arrangements, said they had secured theirs by paying unauthorized “fixers” or by entering into partnerships with existing permit holders. A common form of retribution among vendors is to report one another to city authorities for permit violations.
The existing system is a tribute to the spontaneous creation of norms and property rights, but it’s breaking down as outsiders jump into the cart boom. Increasing the number of legal permits and auctioning them off, as one bill proposes, would be a partial solution. Establishing legally recognized, tradeable property rights for cart locations might be another, but it doesn’t appear that anyone is talking about that.
Another significant conflict is between cart owners and owners of restaurants and cafes who resent the low-cost competition. Read the whole thing here.
Previously:
Cart watch, NYC edition
DC cart watch, public choice edition
Hot dogs and beyond
Jacob Grier is a freelance writer, barista, mixologist, and magician in Portland, OR. He writes, eats, and drinks a lot. His articles have appeared in The Washington Post, Reason Online, The Oregonian, and other publications.
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