Shannon Rogers began FerLunch milk bar in Wangaratta’s Tone Road last September and soon after a food van set up outside the nearby Alpine Truss factory, an estimated 80 metres away.

Under Rural City of Wangaratta local laws, an itinerant trader must not “trade within 300 metres of an established permanent business that is selling the same or a similar product”.

Ms Rogers complained to the city and hired a private investigator who compiled a report, including video, on the trading of the Wangaratta Mobile Catering van after an undercover probe.

“It’s heart-breaking and there’s been a lot of mental stress about it because I get up at 3.30am in the morning and I put everything into it,” Ms Rogers said.

“When we began this it was dead and before the food van we were thriving.”

Her husband Fabian Harding said the report of the private investigator, which cost $1500, had been given to the council to assist its response to the food van.

“We know this is not a $1 million company,” Mr Harding said.

“We’re making a good living out of it, but it’s made us struggle and there’s an emotional side to it, with Shannon coming up and seeing less and less customers coming through and there’s a bloke operating illegally.”

Council chief executive Brendan McGrath said when the van first set up it did not have a permit to operate so the city could not take action against it.

“It was an awkward phase for everyone concerned and we’ve had regular contact from FerLunch on the issue and we’re pleased now there’s a permit in place and they are being compliant,” Mr McGrath said.

The van, which stops at morning tea and lunch Monday to Friday, has moved to the far entry point to the factory from the milk bar.

Ms Rogers is satisfied by that but estimated she has lost 10 to 15 customers who spent $10 to $15 each day.

Mr McGrath said three years ago Wangaratta was largely bereft of food vans and now there were eight to 10 regularly operating.

“They do provide a convenient service but we are aware of trying to balance that against the investment that people with businesses make in our towns,” Mr McGrath said.

He said a council review would examine whether the 300-metre limit may need to change, with 100 and 500 metres flagged.

Ms Rogers said she welcomed competition “as long as it’s fair and healthy” and this “has never been healthy”.

The Border Mail left phone messages with Wangaratta Mobile Catering that were not returned.