How can legit businesses even compete with street vendors?

My wife ran a small eatery for 17 years.

During this time we had'

• A Shops and Establishment License.
• A Fire Safety Certification and License.
• A FSSAI License
• A Food License (before FSSAI came into play)
• A Municipal Corporation License
• A Lease deed for the shop
• No Child labor
  

We were paying rent which included property tax and also maintenance (although paid by the owner, he was recovering it from us in the rent).

After this, we were subject to administration by the society and had to take care of our own garbage.

Before demonetization we had a staff compliment of 10 people including two family members.

After demonetization, the business went down and we reduced staff to four people including one family member.

Last year, in June 2023, we closed down the business as the owner doubled the rent from existing 18,000 (for a 200 sq ft shop) to 35,000/-

Compare this with a road side vendor.
In most cases none of them have an FSSAI license or registration.

• They have no Shops and Establishment License.
• They have no Fire Safety certification or license.
• They have no Municipal Corporation sanction or license.
• They leave their garbage on the road at the end of the shift.
• Generally employ child labor.
  

They have protection from local politician and local goons. They pay a daily hawker fees of 50-100 Rupees and another 100 perhaps in bribes.

They have no rent to pay. They are not subject to any inspection.

And they carry on their business right outside any popular store.

At the end of the day, people often compare prices not realizing that it is not a level playing field.

While I have nothing against anyone trying to earn an honest living but what about those who are operating within the legal framework and are accountable if things go wrong?

The street vendor will run away if there is a fire or an explosion. He will not be held responsible if you fall sick or there is food poisoning. He is not paying any rent and creating the most amount of garbage on the roads.

Yet, everyone wants to support them, leaders go their vends and are seen eating or drinking tea from such vends.

What kind of message are our leaders sending?