For years, our city has hosted monthly food truck and music events that attract hundreds of locals to eat and listen to music. About half the trucks have flipped over in the past few years.
This turnover occurs when the cost and complexity of getting food trucks on the road increases, causing delays, lost deposits and tight financing to become existential risks for small operators.
Some may leave for better opportunities, but others will almost certainly go out of business. That’s because, while the food truck industry has been growing, competition is also fierce, according to Food Truck Profit.
Half of food truck owners Under 50 years old.
There is no single food truck company Has more than 3% market share.
The average purchase cost of a new food truck in 2025 is $108,500.
average purchase cost Used food trucks in 2025 are worth $46,800.
Today, there are 48,400 food trucks Across the United States
Exceed 60% of Millennials Ate at the food truck last year. Source: Food Truck Profits
As equipment costs rise and financing tightens, the gap between popular demand and a sustainable food truck economy is likely to widen.
For small operators, even minor delays or cost overruns can quickly wipe out razor-thin margins and determine whether a truck can get back on the road.
Industry research and operator surveys show that while food trucks are popular, their business models leave little room for error.
However, according to IBIS World, the number of food trucks will actually decrease by 0.2% by 2025.
Craft Taco food truck owner Eddie Tamayo makes it clear that getting into the food truck industry 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. “You’ll encounter all kinds of obstacles, from finding a good source of power to engine failure to blown tires. It’s the greatest challenge in life, but it’s also very rewarding.”
Now, a new barrier to entry into the food truck space has emerged as Cruise Kitchens, one of the leading custom food truck manufacturers, filed for Chapter 11 bankruptcy.
Cruise Kitchens has been in trouble for some time after being hit 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, Texas-based manufacturer of custom food trucks and mobile operations, filed for Chapter 11 protection in the Western District of Texas on January 2, 2026. The company specializes in manufacturing high-end mobile kitchens, purpose-built shipping container units, and custom vehicles for corporate and independent customers,” RK Consultants said.
Listings on PacerMonitor confirm Chapter 11 bankruptcy filings.
The company has extensive manufacturing facilities in San Antonio, including significant production sites on Mannix Avenue and Nolan Street.
Cruise Kitchens has expanded operations to accommodate large-scale fleet production during the pandemic-era ghost kitchen boom.
More bankruptcies:
RK Consultants added: “The collapse of a large manufacturing partnership aimed at producing hundreds of trailers per year triggered a liquidity crisis. This bankruptcy filing, combined with significant debt service on real estate holdings, resulted in a significant reduction in the workforce and legal disputes regarding loan defaults and facility foreclosures.”
Cruise Kitchens intends to sell certain real estate assets under court supervision while it attempts to restructure its core manufacturing operations.
Competition in the food truck business has become extremely fierce.Shutterstock
Cruise Kitchens, LLC files for Chapter 11 bankruptcy protection exist U.S. Bankruptcy Court for the Western District of Texas exist January 2, 2026according to the case number 26-50001-mmpIndicating formal bankruptcy proceedings and restructuring efforts, Bankruptcy Observer reported.
Multiple federal lawsuits involving Cruise Kitchens to be filed in 2025showing creditor and contract disputes when a company faces financial stress; for example, Goodr, Inc. v. Cruise Kitchens, LLC (submit February 7, 2025)exist U.S. District Court for the Western District of Texas As of September 2025, the company has filed various documents and procedural orders, Justia Dockets & Filings reported.
Another federal contract case, Metro Family Practice, Inc. d/b/a Metro Community Health Centers v. Cruise Kitchens, LLC (submit March 12, 2025Justia Dockets & Filings added that the case will progress through discovery and motions in 2025, reflecting the ongoing legal responsibilities associated with business operations.
Even before filing for bankruptcy, Cruising Kitchens Having financial conflicts with lenders and facing litigation over unpaid deposits and delivery disputesThat includes lawsuits filed by customers and lenders alleging failure to deliver trucks or repay funds — all signs of severe financial stress during the bankruptcy, the San Antonio Express-News reported.
Bondoro reported: “The company reported assets of $3.4 million and liabilities of $18.2 million. The filing indicates that unsecured creditors will not be able to access any funds.”
Cruise Kitchens works with individuals entering the food truck space, but its core business has been high-profile clients including Walmart, HEB, Whataburger, Raising Cane’s, Houston Food Bank and Eat. study. Play, the charitable foundation of Stephen and Ayesha Curry.
However, the company overextended by ordering too much inventory when it struck a deal with Reef Industries to supply hundreds of food trailers. The deal fell apart after only a few trucks were delivered, and Reef is suing Cruise Kitchens.
“Reef isn’t the only company following this [parent company Davies Enterprises LLC]. Several other customers filed lawsuits claiming they didn’t receive the food trucks they ordered. Lenders also filed lawsuits claiming they were not repaid, the San Antonio Express-News reported.
The newspaper also reported that the company faced multiple other problems.
Former employees described problems cashing their paychecks, sometimes requiring them to buy their own supplies.
After significant layoffs at the company’s headquarters on Mannix Avenue near San Antonio International Airport, a housekeeper is manning the front desk.
Cruise Kitchens and Davies Enterprises are also embroiled in a financial dispute with a lender seeking to foreclose on two of its other properties: the Eastside Warehouse at 314 Nolan St. and the former boardwalk at Bulverde Food Truck Park at 14732 Bulverde Road.
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This article was originally published by TheStreet on January 3, 2026, and first appeared in the Restaurant section. Click here to add TheStreet as your preferred source.
Competition in the food truck business has become extremely fierce.Shutterstock
