Increasing numbers of people heading to Poulton on a night out and a lack of space for taxis are being blamed for overcrowding in the town.
Drivers say there are not enough taxi ranks to cope with demand at peak times and councillors have admitted there is little they can do to ease the problem.
It was also suggested the risk of violence if drunk people are left waiting in the streets makes overcrowding the lesser of two evils.
Speaking at a Wyre Council meeting on Thursday, Coun Barry Birch said: “Anybody who goes into Poulton will be aghast with the number of taxis in the area.”
But one taxi boss said drivers either risked upsetting residents by crowding the streets or leaving revellers out in the cold once the pubs and clubs closed their doors.
Peter Hornby, managing director of Cleveleys-based Ace Radio Cabs, said: “Everybody wants to be in Poulton – it’s the place to be – and the new Wetherspoons is only going to attract more people.
“You can pile them in over three or four hours but then everywhere closes at about the same time.”
But he said he said he sympathised with the council as there is nowhere to put extra taxi ranks.
Chairman of Wyre’s licensing committee Coun Michael Vincent said the cost of enforcement makes the situation difficult to tackle.
He added: “While over-ranking is a problem, getting people out and stopping issues is a consideration for the council.”