Never seen any food stalls outside a restaurant unless it's a very very busy street.
Suk Soi 8 - In front of 7-11 but also across from a restaurant Suk Soi 5 - In front of several restaurants Suk Soi 7 - In front of several restaurants Suk Soi 11 - In front of several restaurants
I could name tons of more obscure places that I remember eating at but the above are pretty well known to most tourists and expats.
They are not friends of the local business owners. They pay the police for the space. That's why every time they have one of these street vendor crackdowns mandated by the big boys at the top of the food chain the shops usually pop back up in a week or two once the heat is off. Police can't stand not getting paid their rightful bribes.
Does anyone really think that all of those store owners right on lower Sukhumvit (between Soi 5 and Asoke) want people selling dildos in front of their shops? Viagra pills, bootleg DVDs, etc?
Literally, I have photos of cops sitting there having lunch with these street merchants (Soi 15'ish area) with dildos and fake viagra sitting on the same table they're eating off of. Guess who that street vendor is friends with? Who's the store owner going to complain to? Nobody if they value their health.
Alas those photos will never see the light of day for much the same reason.
The people who really struggle are the people who run the stalls :/
Anyway, I probably shouldn't generalise all asian food stall markets. Thailand is quite a poor and corrupt country AFAIK. I have no idea how someone gets a space for their cart in Bangkok. I'll give you the benefit of the doubt that you know more about how it works there than I do.
However, I'd be surprised if getting a profitable spot for one's cart doesn't involve a lot of "connections" and occasional show of force. After all, there are many more people who are willing to use these spots. If government isn't protecting the "owners" via property rights, someone else is doing the job. (It could be the merchants themselves. Whether that's desirable is left for the readers to decide.)
I'm not naive enough to assume this trumps economic struggle, but I will say I was surprised that a lot of things you see elsewhere in tourist areas aren't prevalent in Thailand. E.g. bag snatching, mugging, etc.
Though not as far as Japan's "Excuse me sir, you left your wallet at the restaurant 30 minutes ago. Apologies that it took me this long to catch up with you on the subway and return it."
When visiting Thailand, even if some Thai person mistreats you (e.g. perhaps a tuktuk driver overcharges you), always try to act friendly (don't act angry in public). Try to resolve problems while keeping a smile. If you can't resolve problems this way, just go with the flow. This is a good way to avoid problems.
And then on Day 2 you find five food stalls blocking your store...
Edit: Also do you think people selling food in a busiest street are not being regulated? It's a prized spot, and these guys are professionals. Chances are that it's being regulated. Just not by the police.
And the "tax" they pay for the privilege of operating there isn't being used to, say, build a better road.