Police raised safety concerns over four fast food vans that trade around Hampden on match days.
Glasgow City Council's Licensing and Regulatory Committee heard police fear the traders, who park their towing vehicles away from the kiosks, will not be able to remove the static units quickly in the event of an emergency.
But despite a lengthy complaint from the police about the outlets, described by police as "stances", councillors opted to take no action.
The report to the committee from Strathclyde Police said: "One of the main issues to consider is the safe entry and egress of supporters to and from the stadium, particularly in the event of an emergency evacuation.
"Due to the unique location of Hampden and the proximity of residential properties to the North Stand, the contingency plan for the stadium in the event of an evacuation requires an unobstructed concourse including the width of Prospecthill Drive and Hangingshaw Place.
"This ensures that conflict and cross flow of spectators is minimised and avoids unnecessary delay of spectators during an evacuation of the stadium. The stances referred to are all for areas within this restricted zone.
"The placement of this stance reduces the available width of Prospecthill Drive and will increase the time taken for spectators to evacuate the stadium."
The complaint goes on to argue that the positions of the vendors contravenes guidance from the Department for Culture Media and Sport's Guide to Safety at Sports Grounds.
It concludes that following advice from Brian Muir, safety and operations manager at Hampden PLC, and in view of the circumstances, the four licenses to trade should not be granted as "they compromise spectator safety and the safe operation of Hampden Park."
Susan Aitken, an SNP councillor who serves the Langside ward that includes Hampden said: "It seems a little heavy-handed to seek to remove these traders completely.
"If the police think there's a health and safety issue, then fair enough, I'm not suggesting they should be ignored.
"But there should be an alternative way forward to find a safe location for these businesses to continue."
A spokesman for Glasgow City Council said: "The committee heard the police complaint, but was not satisfied a case had been made to suspend the licences."