For many years, our town has hosted a monthly food truck and music event that brings hundreds of locals to eat and listen to music. In the last few years, half of the trucks have overturned.
As the cost and complexity of getting a food truck on the road increases, delays, lost deposits, and existing risks for small operators increase financing stress.
Some may have left for better opportunities, but others almost certainly went out of business. That’s because while the food truck industry is growing, it’s also incredibly competitive, according to food truck profits.
Half are food truck owners Under 50 years.
There is no single food truck company More than 3% of the market.
The average purchase cost of a new food truck in 2025 was $108,500.
The average purchase cost of a A used food truck in 2025 was $46,800.
Today, there are 48,400 food trucks across the US
above 60% of millennials Last year the food truck was eaten. Source: Food Truck Benefit
As equipment costs rise and financing tightens, the gap between popular demand and sustainable food truck economics is likely to widen.
For smaller operators, even minor delays or cost overruns can quickly wipe out thin margins and determine whether a truck makes it on the road.
Industry research and operator surveys show that while food trucks are popular, the business model leaves little room for error.
Food trucks, however, actually shrank by 0.2% in 2025, according to data from IBIS World.
Eddie Tamayo, owner of Kraft Taco Food Truck, explained that breaking into the food truck business is not easy.
“Owning a food truck is probably the hardest thing I’ve ever done, and there’s more to it than meets the eye,” Tamayo told JMS Report. “You’ve got obstacles from finding a good power source in your engine to popping your tires. It’s one of the biggest challenges in life, but it’s been very rewarding.”
Now, a new barrier to entry into the food truck space has arisen as Cruising Kitchens, one of the leading manufacturers of custom food trucks, has filed for Chapter 11 bankruptcy.
Cruising Kitchens has been struggling for a while as it filed 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 custom food truck and mobile business manufacturer based in San Antonio, TX, filed for Chapter 11 protection in the Western District of Texas on January 2, 2026. The company specializes in building high-end mobile kitchens, specialized shipping container units, and custom vehicles for RK customers.
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 its operations to accommodate large-scale fleet production during the pandemic-era ghost kitchen boom.
More bankruptcies:
“The bankruptcy filing follows a liquidity crisis that began with the collapse of a large manufacturing partnership intended to produce hundreds of trailers annually. This disruption, combined with significant debt servicing on real estate holdings, led to substantial workforce reductions and added loan defaults and legal disputes for faculty.”
Cruising Kitchens intends to pursue a court-supervised sale of some real estate assets as it attempts 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 filed for Chapter 11 bankruptcy in US Bankruptcy Court for the Western District of Texas in January 2, 2026Under case no 26-50001-mmpAccording to the bankruptcy watchdog, signaling formal bankruptcy proceedings and restructuring efforts.
Several federal lawsuits were filed in 2025 related to cruising kitchensshowing creditor and contractual disputes as the company faces financial stress; for example, Goodr, Inc. v. Cruising Kitchens, LLC (file February 7, 2025) in U.S. District Court for the Western District of Texas Justia Dockets & Filings reported, with various filings and procedural orders entered through September 2025.
Another federal contract case, Metro Family Practice, Inc. d/b/a Metro Community Health Centers v. Cruising Kitchens, LLC (file March 12, 2025Progress was being made through inventions and motions in 2025, reflecting ongoing legal obligations associated with business operations, Justia Dockets & Filings added.
Even before the bankruptcy filing, there was Cruising Kitchens In financial conflicts with creditors and facing litigation over unpaid deposits and delivery disputesAccording to the San Antonio Express-News, all signs of deepening financial stress during the bankruptcy period — including lawsuits from customers and creditors who allege the trucks failed to deliver or make refunds.
“The company reports $3.4 million in assets and $18.2 million in liabilities. The filing indicates that no funds will be available for unsecured creditors,” Bondoro reported.
Cruising Kitchens works with entrants into the food truck space, but its core business is big-name clients including Walmart, HEB, Whataburger, Raising Canes, The Houston Food Bank, and Eat. learn Play, Steph and Ayesha Curry’s Charitable Foundation.
However, the company overextended itself by ordering a lot of inventory when it contracted with Reef Industries to supply hundreds of food trailers. That deal fell apart with only a few trucks delivered, and Reef is suing Cruising Kitchens.
“Not the only company after Reef [parent company Davies Enterprises LLC]. Several other customers have filed lawsuits alleging they did not receive the food trucks they ordered. Creditors have also filed lawsuits, claiming they have not been paid,” according to the San Antonio Express News.
The newspaper also reported that the company faced many other problems.
Former employees describe problems cashing their paychecks, sometimes requiring them to buy their own supplies.
Deep staffing cuts left-home workers to work at the front desk at the company’s headquarters on Mannix Drive near San Antonio International Airport.
Cruising Kitchens and Davis 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 at Boulevard Food Truck Park at 14732 Boulevard Road.
Related: Chipotle Rival Mexican Chain Closes 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 preferred source by clicking here.
