In an attempt to make the most of the situation, he had opened earlier and offered a brunch menu, but found the market did not attract new customers and deterred regulars.
Since the market started, sales had been "through the floor", he said.
"It stopped transient people like the motorbike club and road clubs coming here for lunch because they like to park out front and look at their expensive machines, and I've missed out on all that trade.
"But what really annoys me is that the council realised that they [the market] couldn't be on the road for legal reasons - and what has upset me is the vitriol on this Facebook site. They've condemned me as being the problem - the problem was never me, it was council."
During winter the market had moved to the Events Centre, but when it moved back on to the street outside the restaurant, Mr Kennedy said he decided to contact the council for a review.
"I let it go to see if it would affect my business. When I heard they were coming back I thought, enough is enough."
The market had not have a traffic management plan in place, which meant it could not continue on the street, Mr Kennedy said, and organisers had rejected alternative locations such as Carrington Park.
The real argument was between council and market organisers, he said, but Facebook posts pointed the finger at him.
"They are picking on me in this situation because they can't pick on the council because they've got their hand out to the council, so they are using me as the scapegoat."
The comments on Facebook were a "character assassination" which had deeply affected both him and his wife, Mr Kennedy said.
"What's hurt me is . . . I've been put up as the bad boy and I'm just trying to save my business."