Spiced up: Further market acceptance of Mexican food will underpin industry expansion

Over the five years to 2016, industry operators have benefited from an increased acceptance of Mexican cuisine in the mainstream American pallet. Additionally, an increasing immigrant population coupled with domestic adaptations of Mexican food, such as Tex-Mex cuisine, have also aided the rise of the Mexican Restaurants industry over the past five years. As a result of these major trends, industry revenue is expected to continue growing during the five years to 2021...read more.

Industry Statistics & Market Size
Revenue
$38bn
Annual Growth 11-16
3.0%
Forecast Growth 16-21
Profit
Employment
878,989
Businesses
43,359
What Our Customers Say

Industry Threats & Opportunities

  • Americans’ increasing taste for Mexican food will drive sales and store expansion
  • Restaurants have incorporated Mexican food into their menus in response to high demand
  • Mexican restaurants will benefit from greater foot traffic and higher average checks
  • Industry Report - Industry Investment Chapter

    The Mexican Restaurants industry has a low level of capital intensity. For every $0.07 cents allocated toward using and replacing buildings and equipment, $1.00 is spent on wages. As such, labor intensity is high. The industry is heavily dependent on direct labor input across all operations. Nonetheless, a low average wage demonstrates the low-skilled nature of many employees' positions. Most industry employees are part-time servers, cashiers, cooks or dishwashers. This also decreases overhead costs for employee health insurance and other benefits. Meanwhile, investments in cooking equipment are limited because most Mexican-style food can be prepared in a basic kitchen...purchase to read more.

    Additional Insights for the Mexican Restaurants Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Mexican Restaurants Industry are

  • Effective cost controls
  • Ability to franchise operations
  • Having a clear market position
  • IBISWorld analysts also discuss how external factors such as Consumer spending and Agricultural price index in the Mexican Restaurants industry impact industry performance..

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    What is the Mexican Restaurants Industry?

    This industry is composed of restaurants that primarily serve Mexican-style (including Tex-Mex) food to patrons. It encompasses single-location, chain and franchised enterprises, as well as full-service and fast-food operators. These restaurants also sell alcoholic and other beverages. However, street and food-truck vendors are excluded from the industry.

    Industry Products
  • On-premises limited-service restaurants
  • Drive-thru limited-service restaurants
  • Full-service restaurants
  • Off-premises (take out) limited-service restaurants
  • Cafeterias and buffets
  • Industry Activities
  • Chain full-service restaurant operation (directly owned and operated by owners)
  • Franchised full-service restaurant operation (under franchise agreements with franchisers)
  • Full-service restaurant operation (waiter or waitress service at tables)
  • Operating drive-thru and take-out facilities
  • Operating quick-service restaurants
  • Operating fast-food services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer spending
  • Agricultural price index
  • Consumer Confidence Index
  • Number of immigrants
  • External competition

  • Current Performance
    Volatile input costsPopularity surgeGreater automation reduces wage costs
  • Chart: Revenue Growth

  • Industry Outlook
    Industry fiestaChanges in operating conditions
  • Table: Mexican Restaurants Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Mexican Restaurants Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Beef & Pork Wholesaling
  • Dairy Wholesaling
  • Egg & Poultry Wholesaling
  • Fish & Seafood Wholesaling
  • Frozen Food Wholesaling
  • Fruit & Vegetable Wholesaling

  • Products & Services
  • Full-service restaurants
  • Drive-thru limited-service restaurants
  • On-premises limited-service restaurants
  • Off-premises (take out) limited-service restaurants
  • Cafeterias and buffets
  • Chart: Mexican Restaurants Industry Products and Services Segmentation

  • Demand Determinants
  • Demographic trends
  • Health consciousness
  • Convenience

  • Major Markets
  • Highest quintile of incomes
  • Fourth quintile of incomes
  • Third quintile of incomes
  • Second quintile of incomes
  • Lowest quintile of incomes
  • Chart: Major Market Segmentation for the Mexican Restaurants Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Rent & utilities
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Mexican Restaurants

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Mexican Restaurants Industry

  • Industry Globalization
    Taco Bell Corp.Chipotle Mexican Grill
  • Table: Taco Bell Corp. - financial performance
  • Table: Chipotle Mexican Grill - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Mexican Restaurants Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Mexican Restaurants Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Consumer Spending (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Average Check
  • The average amount of money spent per check at an industry establishment.
  • Chain Restaurants
  • Restaurants owned and directly operated by a single company.
  • Food Service
  • Industry includes restaurants, catering and fast-food establishments, bars and taverns and other establishments that provide food for guests.
  • Franchised Restaurants
  • Restaurant concepts sold to individual operators, with group ordering, marketing, training, financial and management support.
  • System-Wide Sales
  • Sales from both company-owned or managed and franchised or licensed outlets. System-wide sales excludes royalties and franchising revenue fees.
  • Why buy this report?

    IBISWorld’s industry research report on Mexican Restaurants contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Mexican Restaurants:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Mexican Restaurants market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Mexican Restaurants, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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