A popular family hot dog business facing a move because it acts as a “potential flashpoint” for trouble, was left shocked after Sutton Council granted a late licence to a nearby takeaway.

Lunch on the Run has been a familiar sight in Sutton High Street for the past 15 years, with owner Marie Benson’s family trading in the town for the past 30.

She was told the shop would be demolished in March, as the council made way for a £3m town centre makeover.

The council’s offer to reposition the shop at the bottom of the High Street has caused controversy, as Mrs Benson claims she would lose her valuable nighttime trade, and have to close.

Last week councillor John Drage was quoted in this newspaper as saying the old location “acts as a magnet for people coming out of pubs and clubs and is a potential flashpoint”.

But the council’s stance is in contrast to its decision to grant a 4am licence to Finnegan’s Fish and Chips, near the top of the high street.

Mrs Benson, 52, who has worked in the shop since she was a schoolgirl, said: “I’m disgusted.

“There has never been any trouble here, and now the council says it could be a flashpoint, while granting a licence to the fish and chip shop?

“It’s really unfair. I can’t understand it.”

A petition, which includes the signature of Sutton street pastor Mark Tomlinson, has attracted more than 2,000 people, and a Facebook page has now been created to build support.

Mrs Benson, who is now working from a mobile unit outside Wilkinsons, said: “I’m overwhelmed by the amount of support, it’s incredible really, but it’s bitter-sweet.

“If the council forces me down the bottom, that will be the end of our family business. I’m devastated at the thought of it.”

Councillor Jayne McCoy, executive member for planning, economic development and housing, said: “Town centre safety is one of our highest priorities, which is why the licence was granted to Finnigan’s Fish and Chips under the strict condition that it employs two doormen.

“It is unfortunate Mrs Benson will have to move her business, but this is simply a case of practicality – there are no other suitable locations for a permanent kiosk.

“We are working with the police and Mrs Benson to find the best alternative location.”