It's abundantly clear from pre-20th century history.
That was when information moved a lot slower and the average person knew a lot less.
Most people know little about how the Internet works, how TV's work, how cars work, etc. The manage just fine.
Lots of average people still get phished for credit cards on the Internet every day. All they lose is a few nights sleep. But if the same people make the same level of mistakes with food, their kids will die. And without a food safety regulator, that will happen a lot.
You seem to object people having the right to trade a small freedom, namely the right to sell food in any old way they choose, with a big freedom, namely the right to eat safely anywhere. Why? Its a good trade. Unless you explicitly want to sell unsafe food, you lose nothing.