Council members tabled a final vote Wednesday, saying they plan to discuss the issue at a workshop next month before making a decision.
As currently written, the proposed ordinance would limit the number of vendors to one at a time and require that company to locate in a designated spot adjacent to a new parking area that has access to electricity and water.
A yearlong permit to operate would be given on a first come-first served basis with the option to renew without opening the spot back up to other vendors, town officials have said.
The issue first arose last year when an individual asked about opening a hot dog stand at the Sands Beach.
As proposed, vendors would have to get a business license from the town before opening. Those approved could operate between 6 a.m. and 11 p.m. and would not be allowed to leave their cart overnight at The Sands or on streets or sidewalks.
At least three council members have said they're not comfortable with the proposal.
Some say the area first needs a permanent restroom facility for convenience and sanitation purposes.
Councilman Vernon DeLoach said last week he'd rather see the town build a permanent vending venue with public restrooms that a business could rent rather than allowing individuals to bring in their own carts.