For several years, our town has hosted food trucks and a monthly music event that brings hundreds of locals to eat and listen to music. Over the last few years, maybe half the trucks have been overturned.
That kind of turnover is what happens when the cost and complexity of getting a food truck on the road increases, delays, lost deposits, and funding strain add up to existential risks for small operators.
Some may have left for better opportunities, but others almost certainly went out of business. That’s because while the food truck industry has been growing, it’s also incredibly competitive, according to Food Truck Profit.
Half the food truck owners are under 50 years.
Not a single food truck company has more than 3% of the market.
The average cost of buying 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 is 48,400 food trucks across the United States
Above 60% of millennials I have eaten at a food truck in the last 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 gets on the road.
Industry research and operator surveys show that while food trucks are popular, the business model leaves no room for error.
Food trucks, however, will actually decrease 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 done, and there’s a lot more to it than meets the eye,” Tamayo told JMS Reports. “The obstacles you have from finding a good power source to breaking your engine to blowing your tires. It was the biggest challenge in 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 some time since being served with multiple 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 the fabrication of high-end mobile kitchens, specialized shipping container units, and custom vehicle builds for enterprises 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 production 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 Failure:
“The bankruptcy filing follows a liquidity crisis triggered by the collapse of a massive manufacturing partnership intended to produce hundreds of trailers each year. This disruption, together with significant debt service on real estate holdings, has led to a substantial reduction in the workforce and legal disputes regarding loan defaults and foreclosure of the facility”, added RK Consultants.
Cruising Kitchens intends to conduct a court-supervised sale of certain real estate assets while attempting 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 the United States 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.
In 2025 several federal lawsuits involving Cruising Kitchens were filedshowing disputes between creditors and contracts as the company faced financial strain; for example, Goodr, Inc. v. Cruising Kitchens, LLC (presented February 7, 2025) in the United States District Court for the Western District of Texas with several 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 (presented March 12, 2025), was moving forward through discovery and motions in 2025, reflecting ongoing legal liabilities related to business operations, Justia Dockets & Filings added.
Even before the bankruptcy filing, Cruising Kitchens was in financial conflict with lenders and faces lawsuits over unpaid deposits and delivery disputesincluding lawsuits from customers and lenders alleging non-delivery of trucks or repayment of funds – all signs of deep financial stress leading to the period of bankruptcy, 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,” reported Bondoro.
Cruising Kitchens works with individuals entering 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.
The company, however, overextended itself by ordering too much inventory when it made a deal with Reef Industries to supply hundreds of food trailers. That deal imploded with only a few trucks delivered, and Reef is suing Cruising Kitchens.
“Reef is not the only company behind [parent company Davies Enterprises LLC]. Several other customers sued, alleging they did not receive food trucks they ordered. The lenders were also searched, claiming they were not repaid,” according to the San Antonio Express News.
The newspaper also reported that the company faced several other problems.
Former employees describe problems cashing their wages, sometimes needing to buy their own supplies.
A major downsizing left housekeepers to staff the front desk at the company’s headquarters on Mannix Drive near San Antonio International Airport.
Cruising Kitchens and Davies Enterprises are also involved in a financial dispute with a lender seeking to foreclose on two of its other properties: the East Side store at 314 Nolan St. and the former Boardwalk on Bulverde food truck park at 14732 Bulverde Road.
Related: Chipotle’s rival Mexican chain 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 Preferred Source by clicking here.
