Mexican Restaurants in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS OD4305Revenue
$96.4bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
963k
Businesses
49,940
Wages
$XX.Xbn
Mexican Restaurants in the US industry analysis
The Mexican restaurant sector has seen robust growth over the past five years, spurred by several promising trends. These include the mainstream adoption of Mexican food in the American diet, primarily a result of a rising Hispanic immigrant population that has bolstered demand and supply. In addition, adaptations of Mexican cuisine, such as Tex-Mex, have surged in popularity, largely thanks to major chains such as Taco Bell.
Trends and Insights
- Immigration growth fuels Mexican restaurants' popularity. The increasing immigrant population has led to the expansion and establishment of these eateries in unlikely places. Their affordability, compared to other ethnic food, makes them a prime choice for consumers.
- Individuals from every income level go out to eat to some degree. However, income levels go in hand with the extent to which consumers dine out.
- Concentration is higher in or near areas with higher household income. Specifically, income levels are the prime determinant of the propensity to dine out at Mexican restaurants.
- Franchise agreements can lower operational costs and minimize some risks, especially for inexperienced persons entering the industry. Therefore, major chains have expanded their franchisee-owned locations, capturing more customer demand.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 4.7 % over the past five years, to reach an estimated $96.4bn in 2024.
Trends and Insights
Hispanic population growth propels Mexican cuisine into mainstream America
- The United States is currently witnessing a surge in the popularity of Mexican-style food, placing it firmly in the mainstream of the American diet. As reported by the Tortilla Industry Association, tortillas have achieved second in popularity among bread types in the United States, only surpassed by white bread.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Rising food costs put pressure on profitability
- Mexican restaurants face components of financial stress due to the unpredictable nature of food prices. This uncertainty is intensified by factors such as sustained drought or interruptions in the supply chain, causing inflated costs.
Biggest companies in the Mexican Restaurants in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Chipotle Mexican Grill, inc. | 8,210.3 | 999.4 | 12.2 |
To view the market share and analysis for all 1 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Family style, Casual dining and Upscale dining. Family style is the largest segment of the Mexican Restaurants in the US.
Trends and Insights
Rising disposable income fuels demand for upscale dining
- The majority of the industry's establishments are full-service restaurants, offering table service where food and beverages are served by a trained waitstaff to seated customers. These restaurants come in various styles, with some specializing in Mexican cuisine.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Chain Restaurants in the US
- Single Location Full-Service Restaurants in the US
- Caterers in the US
- Street Vendors in the US
- Bars & Nightclubs in the US
- Coffee & Snack Shops in the US
- Fast Food Restaurants in the US
Complementors
- There are no industries to display.
International industries
- Global Fast Food Restaurants
- Full-Service Restaurants in Canada
- Fast Food Restaurants in Canada
- Fast Food and Takeaway Food Services in Australia
- Restaurants in Australia
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
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 facilitiesOperating quick-service restaurantsOperating fast-food servicesCompanies
Chipotle Mexican Grill, inc.Purchase this report to view all 1 major companies in this industry.
Related Terms
CHAIN RESTAURANTSFRANCHISED RESTAURANTSAVERAGE CHECKFOOD SERVICESYSTEM-WIDE SALESIndustry Code
NAICS 72251 - Mexican Restaurants in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Immigration growth fuels Mexican restaurants' popularity. The increasing immigrant population has led to the expansion and establishment of these eateries in unlikely places....
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Individuals from every income level go out to eat to some degree. However, income levels go in hand with the extent to which consumers dine out.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Concentration is higher in or near areas with higher household income. Specifically, income levels are the prime determinant of the propensity to dine out at Mexican restaura...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Franchise agreements can lower operational costs and minimize some risks, especially for inexperienced persons entering the industry. Therefore, major chains have expanded th...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Low barriers to entry allow new restaurants to enter the market with ease. Further, due to the industry's highly fragmented nature, only one company accounts for more than 5....
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Chipotle Mexican Grill, inc.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Chipotle Mexican Grill, inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
A provision of the US Affordable Care Act requires that restaurant chains with over 20 locations post the food's calorie content. New research finds that menu items introduce...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Due to the high number of franchised businesses, franchise royalties and other fees can account for a significant proportion of industry revenue. This cost will rise further ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Mexican Restaurants in the US industry in United States in 2024?
The market size of the Mexican Restaurants in the US industry in United States is $96.4bn in 2024.
How many businesses are there in the Mexican Restaurants in the US industry in 2024?
There are 49,940 businesses in the Mexican Restaurants in the US industry in United States, which has grown at a CAGR of 2.2 % between 2019 and 2024.
Has the Mexican Restaurants in the US industry in United States grown or declined over the past 5 years?
The market size of the Mexican Restaurants in the US industry in United States has been growing at a CAGR of 4.7 % between 2019 and 2024.
What is the forecast growth of the Mexican Restaurants in the US industry in United States over the next 5 years?
Over the next five years, the Mexican Restaurants in the US industry in United States is expected to grow.
What are the biggest companies in the Mexican Restaurants in the US market in United States?
The biggest company operating in the Mexican Restaurants market in United States is Chipotle Mexican Grill, inc.
What does the Mexican Restaurants in the US in United States include?
Chain full-service restaurant operation (directly owned and operated by owners) and Franchised full-service restaurant operation (under franchise agreements with franchisers) are part of the Mexican Restaurants in the US industry.
Which companies have the highest market share in the Mexican Restaurants in the US in United States?
The company holding the most market share in United States is Chipotle Mexican Grill, inc..
How competitive is the Mexican Restaurants in the US industry in United States?
The level of competition is moderate and increasing in the Mexican Restaurants in the US industry in United States.
