Huge restaurant industry brand files Chapter 11 as lawsuits mount

For several years, our city has hosted a monthly food truck and music event that brings in hundreds of locals to eat and listen to music. Over the past few years, maybe half of the trucks have turned over.

That kind of turnover is what happens when the cost and complexity of getting a food truck on the road increase, turning delays, lost deposits, and financing strain into 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 of food truck owners are under the age of 50.

No single food truck company has 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 used food truck in 2025 was $46,800.

Today, there are 48,400 food trucks across the U.S.

Over 60% of millennials have eaten at a food truck in the last year.Source: Food Truck Profit

As equipment costs rise and financing tightens, the gap between popular demand and sustainable food truck economics is likely to widen.

For small operators, even modest delays or cost overruns can quickly erase thin margins and determine whether a truck ever makes it onto 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 entering 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 what meets the eye,” Tamayo told JMS Reports. “The obstacles you have from finding a good power source to your engine breaking down to your tires popping. It’s been the biggest challenge in life, but it’s been very rewarding.”

Now, a new obstacle to entering 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 as it was 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 enterprise 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 Bankruptcy:

“The bankruptcy filing follows a liquidity crisis 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, led to a substantial reduction in workforce and legal disputes regarding loan defaults and facility foreclosures,” RK Consultants added.

Cruising Kitchens intends to pursue a court-supervised sale of certain real estate assets while attempting to reorganize its core manufacturing operations.

Cruising Kitchens, LLC filed a Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Western District of Texas on January 2, 2026, under case number 26-50001-mmp, indicating formal insolvency proceedings and restructuring efforts, according to Bankruptcy Observer.

Multiple federal lawsuits involving Cruising Kitchens were filed in 2025, showing creditor and contract disputes as the company faced financial strain; for example, Goodr, Inc. v. Cruising Kitchens, LLC (filed Feb. 7, 2025) in the U.S. District Court for the Western District of Texas with various filings and procedural orders entered through September 2025, reported Justia Dockets & Filings.

Another federal contract case, Metro Family Practice, Inc. d/b/a Metro Community Health Centers v. Cruising Kitchens, LLC (filed Mar. 12, 2025), was progressing through discovery and motions in 2025, reflecting ongoing legal liabilities tied to business operations, added Justia Dockets & Filings.

Even before the bankruptcy filing, Cruising Kitchens was in financial conflict with lenders and facing lawsuits over unpaid deposits and delivery disputes, including lawsuits from customers and lenders alleging failure to deliver trucks or repay funds — all signs of deep financial stress leading into 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 for unsecured creditors,” Bondoro reported.

Cruising Kitchens works with individuals entering the food truck space, but its core business has been big-name clients, including Walmart, H-E-B, Whataburger, Raising Cane’s, the 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 isn’t the only company after [parent company Davies Enterprises LLC]. Several other customers have sued, alleging they have not received food trucks they ordered. Lenders have sued, too, claiming they have not been repaid,” according to the San Antonio Express News.

The newspaper also reported that the company faced multiple other problems.

Former employees describe problems cashing their paychecks, sometimes needing to purchase their own supplies.

Deep staff cuts left housekeepers to man 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 Bulverde food truck park at 14732 Bulverde Road.

Related: Chipotle rival Mexican chain closed all its restaurants

This story was originally published by TheStreet on Jan 3, 2026, where it first appeared in the Restaurants section. Add TheStreet as a Preferred Source by clicking here.