Skip to main content

L.A. Street Vendors Contribute Half A Billion Dollars To Local Economy

Support Provided By

According to estimates by the Bureau of Street Services, the city of Los Angeles is home to roughly 50,000 street vending operations. Three-quarters of these vendors sell merchandise such as T-shirts, cell phone accessories, or various bric-a-brac. The other quarter -- about 10,000 vendors -- are the ones selling foods like "street meat" hot dogs and tacos.

It's a huge amount of business, but the vendors are operating illegally. They also contribute a whole amount of money into the Los Angeles economy. Just how much?

According to a study by the Economic Roundtable, it's $504 million annually.

As the study puts it, this is important because of what it adds, economically, to the city:

Enterprise by Los Angeles street vendors has rippling effects across the local economy. As Los Angeles street vendors sell food and goods to passersby, the multiplier effects from the supplies they purchase and the income they spend accumulate and reverberate through the local economy, adding to the demand for goods and services from local suppliers. This translates into added sales and jobs for local stores, as well as other suppliers who help street vendors keep their carts in operation.

Of course, the big issue is that all of the transactions leading to this exchange of money are, according to the rule of the law, illegal. To Patrick Burns of the Economic Roundtable, this discrepancy is not only incoherent with the reality of the situation, but potentially dangerous to vendors.

"If you happen to be off the books and operating a vending cart, there is the potential for illegal activity, in terms of protection money, any scheme like that," Burns said. "That's less likely to be the case if vendors are brought into the fold and allowed to be out there."

Legalization of street vendors would also provide the workers themselves with something that they're currently in short supply of: peace of mind. "It seems like a good thing for people to be allowed to pursue that entrepreneurial goal without fear of having their cart confiscated," Burns said.

This mindset informs the two recommendations found at the end of the Economic Roundtable report that suggests ending all punitive policies towards street vendors and creating a permit system to legitimize vending businesses. "A round of regulatory oversight, maybe a licensing of vendors, would make sure there are health standards," Burns said. "And in terms of paying city and state sales tax department, that would be important."

All of which is to say, the system as it currently stands is broken. An entire section of the working force that contributes half a billion dollars to the city's economy is doing so illegally. There are two solutions, then. Enforce the law more consistently and end street vending. Or, tweak the law and make vending legal. For Burns and the millions who frequent street vendors throughout the city, the answer is a simple one.

"We think it's important in terms of the food culture of the city," Burns said. "It's part of the continuum that makes L.A. an interesting place to live."

Support Provided By
Read More
A black and white photo of an adult dressed as the easter bunny with a giant costumed head, holding a little girl on their left who gives it a kiss on the cheek and, with his right arm, holding a little boy who brings his hands to his eyes as though wiping away tears.

Behold the Bunnies and Bonnets of L.A.'s Past Easter Celebrations

The onset of the spring season heralds the arrival of fragrant flowers in bloom — and all the critters that enjoy them, including the Easter bunny and families who anticipate his arrival with egg hunts, parades and questionable fashion choices.
A black and white image of an elephant holding a broom with its trunk. A man is seen near the elephant, walking towards the animal.

Lions and Tigers and Cameras! How the Movies Gave Los Angeles a Zoo

The early days of the movies in Los Angeles inadvertently allowed visitors to experience the largest collection of animals in the western United States. When animals weren't appearing in a movie, they were rented out to other film companies, performed for studio visitors, or in the case of filmmaker William Selig's collection — an opportunity to create one of Los Angeles' first zoos.
A vertical, black and white portrait of a blonde woman wearing a sparkly four-leaf clover costume as she holds her arms out and extends a leg as though in a curtsy.

Irish for a Day: L.A.'s History of 'Going Green' on St. Patrick's Day

Whether it was a parade, dance, tea party, home celebration or just enjoying a good ol' wee dram of whisky, here's a photo essay of how Los Angeles donned its green apparel to celebrate St. Patrick's Day and embrace the luck o' the Irish over the years.