Louisville Forces Businesses To Ask Competitors' Permission Before Operating
Source: Institute for Justice
In this particular case, the city of Louisville has a statute on the books that prohibits food trucks from operating within 150 feet of the vicinity of a restaurant that sells similar food, unless they obtain prior permission from that restaurant. Of course, restaurants like any other business want as little competition as possible and are going to deny food trucks permission to do business nearby. In aggregate this has shut out food trucks from having a viable opportunity to do business in the city, and has threatened the livelihoods of many food truck owners. A lot entrepreneurs interested in getting into the food industry cannot afford to rent commercial space for a restaurant; owning a food truck makes it easier to become self-employed in the service industry. It would be understandable if the city prohibited food trucks from parking in front of restaurants, but baring them from parking across the street or a block down reeks of favoritism towards restaurants.