The Taste of Edinburgh has also been hit by claims that leading chefs declined to take part when it was moved from the Meadows last year.
Organisers said they suffered higher costs for using Inverleith Park after losing a public subsidy for the event.
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Hide AdThe three-day festival has also lost the backing and sponsorship of Channel Four. Organisers have blamed the location - insisted on by the city council to curb the impact of major events on the Meadows - for a slump in interest.
Visitor numbers are believed to have dropped because ticket prices had risen to a minimum of 15 just to access the event before the costs of buying food and drink were added.