For several years, our town has hosted a monthly music and food truck event that brings hundreds of locals to eat and listen to music. In recent years, perhaps half the trucks have overturned.
This kind of turnover is what happens when the cost and complexity of getting a food truck on the road increases, turning delays, lost deposits and financial strain into existential risks for small operators.
Some left for better opportunities, but others almost certainly quit. That’s because while the food truck industry has grown, it’s also incredibly competitive, according to Food Truck Profit.
Half of truck owners are under 50 years.
There is no single food delivery company has over 3% of the market.
The average purchase cost of a new food truck in 2025 was $108,500.
The average acquisition cost of a used food truck in 2025 was $46,800.
Today, there is 48,400 food trucks across the US
Fish 60% of millennials have eaten at a food truck in the past year. Source: Food Truck Profit
As equipment costs rise and funding tightens, the gap between popular demand and the sustainable economics of food trucks is likely to widen.
For small operators, even modest delays or cost overruns can quickly wipe out slim margins and determine whether a truck ever makes it to the street.
Industry research and operator surveys show that while food trucks are popular, the business model leaves little room for error.
Food trucks, however, actually contracted by 0.2% in 2025, according to data from IBIS World.
Eddie Tamayo, who owns the Craft Taco food truck, made it clear that getting into the food truck business is not easy.
“Owning a food truck is probably the hardest thing I’ve ever done, and there’s a lot more to it than meets the eye,” Tamayo told JMS Reports. “The hurdles you face in finding a good power source to fail your engine and break your tires. It was the biggest challenge of my life, but it was very rewarding.”
Now, a new barrier to entry in the food truck space has arisen as Cruising Kitchens, one of the leading builders of custom food trucks, has filed for Chapter 11 bankruptcy.
Cruising Kitchens has been struggling for a while now as it has been hit with several lawsuits in 2025. Now, however, the maker of food trucks and other custom kitchens has filed for Chapter 11 bankruptcy protection.
“Cruising Kitchens, LLC, a San Antonio, TX-based custom food truck and mobile business manufacturer, filed for Chapter 11 protection on January 2, 2026, in the Western District of Texas. The company specializes in manufacturing state-of-the-art mobile kitchens, specialized shipping container units, and custom vehicle builds for businesses and independent clients,” according to RK Consultants.
A listing on PacerMonitor confirmed the Chapter 11 bankruptcy filing.
The Company operates substantial manufacturing facilities in San Antonio, including a significant manufacturing presence on Mannix Drive and Nolan Street.
Cruising Kitchens expanded operations to accommodate large-scale fleet production during the pandemic-era ghost kitchen boom.
More bankruptcy:
“The bankruptcy filing follows a liquidity crunch triggered by the collapse of a massive manufacturing partnership intended to produce hundreds of trailers annually. This disruption, coupled with significant debt service on real estate holdings, has led to a substantial reduction in the workforce and litigation related to loan defaults and foreclosures,” RK Consultants added.
Cruising Kitchens plans to pursue a court-supervised sale of certain real estate assets as it seeks to reorganize its core manufacturing operations.
The food truck business has become incredibly competitive.Shutterstock” loading=”lazy” height=”540″ width=”960″ class=”yf-lglytj loader”/>
The food truck business has become incredibly competitive.Shutterstock
Cruising Kitchens, LLC has filed for Chapter 11 bankruptcy in US Bankruptcy Court for the Western District of Texas on January 2, 2026under the case number 26-50001-mmpindicating formal insolvency proceedings and restructuring efforts, according to Bankruptcy Observer.
Several federal lawsuits involving Cruising Kitchens were filed in 2025showing creditor and contract disputes as the company faced financial strain; for example, Goodr, Inc. v. Cruising Kitchens, LLC (submitted February 7, 2025) in US District Court for the Western District of Texas with various filings and procedural orders entered through September 2025, Justia Dockets & Filings reported.
Another federal contract case, Metro Family Practice, Inc. d/b/a Metro Community Health Centers v. Cruising Kitchens, LLC (submitted March 12, 2025), progressed through discovery and motions in 2025, reflecting ongoing legal obligations related to business operations, Justice Dockets & Filings added.
Just before filing for bankruptcy, Cruising Kitchens was in financial conflict with creditors and facing lawsuits over unpaid deposits and delivery disputesincluding lawsuits from customers and creditors who claim they haven’t delivered trucks or repaid funds — all signs of deep financial stress leading up to the bankruptcy period, according to the San Antonio Express-News.
“The company reports $3.4 million in assets and $18.2 million in liabilities. The filing indicates that no funds will be available to unsecured creditors,” Bondoro reported.
Cruising Kitchens works with entrants into the food truck space, but its core business has been big-name clients including Walmart, HEB, Whataburger, Raising Cane’s, Houston Food Bank and Eat. Learn. Play, Steph and Ayesha Curry’s charitable foundation.
However, the company overextended itself by ordering too much inventory when it struck a deal with Reef Industries to supply hundreds of food trailers. That deal fell through with just a few trucks delivered, and Reef is suing Cruising Kitchens.
“Reef is not the only company after [parent company Davies Enterprises LLC]. Several other customers sued, claiming they didn’t receive the food trucks they ordered. Lenders also sued, claiming they were not repaid,” according to the San Antonio Express News.
The newspaper also reported that the company faced many other problems.
Former employees describe problems collecting wages, sometimes having to buy their own supplies.
Deep staff cuts have left housekeepers manning the front desk at the company’s headquarters on Mannix Drive near San Antonio International Airport.
Cruising Kitchens and Davies Enterprises are also embroiled in a financial dispute with a lender seeking to foreclose on two of its other properties: the East Side warehouse at 314 Nolan St. and the former Boardwalk on the Bulverde Food Truck Park at 14732 Bulverde Road.
Related: Rival Mexican chain Chipotle has closed all its restaurants
This story was originally published by TheStreet on January 3, 2026, where it first appeared in the Restaurants section. Add TheStreet as a favorite source by clicking here.
