A trial to host food vans in the Brisbane Street Mall will not go ahead.
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The City of Launceston council received only one expression of interest for the initiative, which was due to commence this month.
However, general manager Michael Stretton said the operator had withdrawn from the project.
"Unfortunately, the one operator we had been negotiating with decided to withdraw their expression of interest, after citing the limited time frame for the trial as key to their decision," Mr Stretton said.
"The expressions of interest process was an opportunity for us to test the market, and while some may be disappointed the trial won't proceed, I'm pleased we were able to provide that opportunity in the first place."
The council called for expressions of interest in January, for up to two food vans to operate in the mall, up to five days a week from Sunday through to Thursday.
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However, the plan attracted criticism from a number of Launceston businesses over a lack of consultation.
An informal petition opposing the idea and signed by 36 city food businesses was forwarded to the council earlier this month.
Mr Stretton said the council would continue to work on other initiatives to help "energise" Launceston's CBD, with further announcements to be made at a later date.
"The reality is, the vast majority of food van operators have other means of employment outside their food van businesses, or other responsibilities already locked in place during the day," he said.
"While almost all of the food van operators agreed it was an excellent initiative and supported the move to place food vans in the mall, they simply weren't in a position themselves to take up the offer.
"We know that food vans are an extremely popular alternative for many people, you only have to look at the popularity of Eat Street."
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