Husband and wife Adam and Jen Beckett have had their Scoopalicious ice-cream trike in Cae Glas Park in Oswestry for the past nine years.
But the re-tendering of the contract has seen Oswestry Town Council name the new licence holder as K&C Yarwood.
The news has been met with frustration by the Scoopalicious customers, some of whom launched a petition for the council to change its mind.
The petition, change.org/p/grant-scoopalicious-the-right-to-serve-at-cae-glas-park, calling for the council to continue to support the local business, has been signed by more than 1,100 people.
Jen said: "We have absolutely loved being in the park for the last nine years and we would like to thank all our wonderful loyal customers and the fantastic park keepers for all their support. It feels like a very sad day."
Adam, said his wife had set up the Scoopalicious business as something she could achieve while coping with multiple sclerosis.
As well as the Cae Glas Park contract the business also attends weddings and other events, from school fetes to commercial ventures.
"We are looking to build on those events and welcome interest from new customers," said Adam.
"We have had a very good relationship with the town council and we appreciated that a tender process has to happen."
However, he said that when the tender was originally advertised it was for a fixed fee of £2,000 a year.
"We understand that the successful tender went to someone who gave a one-off, £12,000 sponsorship. We did not have the knowledge that this could happen and so we feel it has not been a level playing field.
"We also feel that the decision made less than two weeks before the commencement of the new season was very short notice.
"This whole process has been extremely stressful for Jen, and the support of our customers, which has been astronomical, has made all the difference.
"Our business is not just about money, it is about making customers happy and we always keep prices as low as we possibly can."
Oswestry Town Council said that from April 2023, two new businesses will be operating from Cae Glas Park following the award of licences to trade to K&C Yarwood Ltd and The Coffee Hatch. The decision was made at the town council meeting on March 22, the council accepting a recommendation from the Cae Glas Management Group following the advertisement of the licences.
Eight businesses submitted proposals for consideration for the pair of three-year licences.
Town clerk Arren Roberts said: “We are aware of the public interest in the award of the licences and would like to thank Scoopilicious and Llynclys Farm for the service that they have given to visitors over many years. Public bodies have a duty to protect the public purse and all income collected in Oswestry is used for the benefit of Oswestry residents. These new businesses provide an exciting offer, and we look forward to working with them over the next few years.”
A spokesperson from K&C Yarwood Ltd said: “We are very excited that we have been invited to be the new ice cream provider in Cae Glas Park, Oswestry. We look forward to working with the council and local community over the summer, keeping everyone refreshed with dairy ice cream, ice lollies and vegan ice cream. We take pride in being part of our local green parks and investing in our green spaces to enhance everyone’s enjoyment.”
A spokesperson from The Coffee Hatch said: “We are absolutely delighted to have the opportunity to place our mobile coffee hatch in the park. We can't wait to serve our amazing coffee, cakes, smoothies, and other delights to all the wonderful people that visit us from Oswestry and beyond.”