Granada Hills taco restaurant faces tough street vendor competition; Says sales are down

LOS ANGELES - Hot Chile Mexican Food in Granada Hills is a small, family-owned business described by customers as, "The best kept secret in town."

"we keep coming back. It’s really good," said David Phillips, a customer.

It’s good food, but owner Jenny Pak worries it won’t be good enough to survive the intense street vendor competition. She says sales are down by 35%. 

"I’m losing," Pak said. "I’m losing, believe it or not, I’m losing."

About a block away to the north of the restaurant on Balboa, there are four sidewalk vendors.

To the south, a few more. Pak has complained to the City of Los Angeles but says no one ever gets back to her.

Employee Elva Hidalgo worries she could lose her job if business doesn’t improve. She says the competition is not on an equal playing field. 

Hidalgo says street food is less expensive because vendors don’t have rent expenses.

At a taco stand near Hot Chile, Christopher Favela shows off the huge burrito he bought. 

"I mean, look at that, that’s only for like $12 right there," he said.

Favela is a street vendor in the San Fernando Valley and he encourages people to buy street food. 

When asked about brick-and-mortar businesses struggling to compete, Favela answered, "Well, they just need to step up their game and do it better."

To that, Pak says, "If it was a big restaurant, maybe it was a different situation, but I’m struggling, and I don’t think the City really cares."

Fox 11 contacted Council Member John Lee, who represents Granada Hills in District 12. His office issued the following statement:

"Councilmember Lee understands the struggle that small businesses face when competing with sidewalk vendors. The State has severely limited the ability of municipalities to prevent sidewalk vendors from selling near brick-and-mortar businesses. It is ever more critical that the City utilize everything in its scope of authority to ensure that sidewalk vending in the City is permitted, and complies with Americans with Disabilities Act requirements and applicable health codes as enforced by the County."

Not only is Pak dealing with massive competition, she says, "I’m not Mexican, I’m Korean American." 

A Korean American selling Mexican food.

Hidalgo says she has personally witnessed rude customers say quote: "Why is a China selling Mexican food?" 

"Sometimes they’re walking through, and I say hello, I say, ‘Hola coma estas,’ and they look at me like this (up and down). It hurts really bad," Pak said, with tears in her eyes.

Despite the struggles, Pak will continue to sell her food for as long as possible. She’s hoping city officials will do something to help small businesses like hers.

"I gotta survive, I gotta pay rent, I gotta pay taxes, I gotta survive," she said.