I've never seen a food truck with the engine on while serving. The waffles (with 1 dinges) are $6 and popular among tourists and locals alike, simply because they are really good (i.e., mop the floor with Bobby Flay good http://midtownlunch.com/2010/01/21/wafels-waffles-dinges-on-...).
As for using parking spots to serve food, what do you believe creates a greater consumer surplus? A single commuter parking their car for the day or a food truck servicing hundreds of consumers?
Also, why do you believe the city will cease to function if consumers have more options for lunch?