"We have agreed to offer a monthly rental rate that is now based on half of the full day rate," an Auckland Council spokeswoman told the Herald on Sunday.
Retail Food Group's business development manager, Ruby Gibson, applauded the council's move saying it's a "small win for the little guy".
Franchisees for its Coffee Guy operation were among small business operators who were upset at the size of the proposed fee hikes.
"The original changes were quite unfeasible for Coffee Guy franchisees, in particular, who are only in a space for a couple of hours a day," Gibson said.
"With us harassing them and the piece in the newspaper, they have come to realise there's a bit of a glitch and have brought in a half-day rate. It's fantastic."
The Herald on Sunday revealed on June 28 that Auckland Council was changing its charging structures to mobile food vendors to "ensure the outdoor dining, mobile trading and events contribute to the vibrancy of Auckland".
Simon Gooding, who runs a mobile coffee franchise, said under the proposed charges his annual fees would have risen from $1,200 to $4,620.
"I may only be there for a few hours but I'm still being asked to pay the same rental fee as a business that is there for the entire working day," he said at the time.
Gooding is one of many vendors who will now benefit from the modified half-day fees.