According to the group, longstanding caps have made it nearly impossible for them to get a permit.
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More than 9,000 people are on a waiting list for a mobile food permit and more than 10,000 are on a general vendors list.
This all comes as the city has recently started cracking down on illegal vendors in various neighborhoods.
Over the weekend, the NYPD posted a photo showing dozens of bags of confiscated items from unlicensed vendors on Roosevelt Avenue in Queens.
Councilman Francisco Moya in Jackson Heights says he understands the need for the vendors to make a living, but they shouldn't do it at the expense of other businesses in the area.
"A lot of it has been -- we clean up Corona Plaza and they went out to the side street. So, they need a place that is also out of the way," Moya said.
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Following the rally the group marched to the city's Consumer and Worker Protection offices in Lower Manhattan.
ALSO READ | NYPD cracks down on illegal street vendor hotspot in Jackson Heights
Police crack down on illegal street vendor hotspot in Queens
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