North Tallinn and fast-food firm clash over Stroomi Beach

A dispute has emerged between the North Tallinn district administration and fast-food firm LIT over operations at Stroomi Beach. The company believed its existing contract could be extended, but the district administration insists that law requires a new public tender. One tendering slot received no bids, yet the district cannot directly award the vacant spot to anyone.

A dispute has arisen between the North Tallinn district administration and small firm LIT over the right to operate at Stroomi Beach, where bureaucratic requirements and verbal agreements have led the parties to different conclusions.

The dispute dates back to spring, when the district administration announced a tender to find two fast-food outlets at Stroomi Beach. The reason was that a court dispute is ongoing over the tenant of the new beach building. At the same time, LIT already had an active contract since late March, which allowed them to operate at the beach until 30 June 2026.

Company hoped for contract extension

LIT owner Anton Okrut said that although he saw the contract's expiry date of 30 June, verbal negotiations with the district administration gave him the impression that an extension might still be possible. "I saw from the contract that it runs until 30 June, so my question was why the contract should end in the middle of the season, and the answer was that we'd look into extending it. We didn't receive information that we needed to apply in the tender again. For me, it would have been illogical, since we already had an active contract," Okrut explained.

The district administration does not deny that the contract contained a provision allowing for extension. However, it stresses that this very provision was what formed the basis of LIT's contract this year, and the law does not permit the administration to sign a new contract directly with the same company.

Law does not allow direct contract

Kristi Rüütel, deputy head of the North Tallinn district, explained that under current law, a contract can be concluded by direct award only once. "This contract was made by direct award, and under the law we can make a contract by direct award only once. The next time, it must be through a public tender," Rüütel said.

The situation is complicated by the fact that no bids were received for one of the two fast-food outlets announced in the tender. LIT believes that in such circumstances, the city should have offered them at least a temporary solution. However, the district administration maintains that it cannot award a vacant spot directly to any company. "We cannot simply offer this spot to some company. It can only be awarded through a tender. But we will be holding new tenders in the district soon, and LIT is welcome to apply there too," said Rüütel.

Locals want more choice

Beach visitors have largely given the dispute a negative assessment, believing that the beach could offer more diverse food establishments. One local resident, Margo, noted that the situation resembles monopolization and diversity could be greater. Kerli said she enjoys eating and drinking while strolling on the beach. Marge, visiting Stroomi Beach for the first time this summer, praised the presence of Burger Kitchen and ice cream options.