Mexican Restaurants in the US – Market Size, Industry Analysis, Trends and Forecasts (2023-2028)
This information was published on IBIS World November 2023. It has been edited to fit this format.
The Mexican Restaurants industry has thrived over the past five years in response to several favorable trends that have increased the consumer base for Mexican cuisine. Mexican-style food has entered the mainstream American diet, primarily due to a growing Hispanic immigrant population that has increased demand and supply. Additionally, domestic adaptations of Mexican cuisines, such as Tex-Mex, have grown in popularity… Despite strong annualized growth, industry revenue fell double digits in 2020 amid dining room closures during the COVID-19 pandemic. However, industry revenue has boomed as businesses were permitted to reopen and consumers flocked to dine out. Overall, industry revenue grew an annualized 4.7% to $89.8 billion over the past five years, including growth of 1.9% in 2023 alone.
As household income has grown, consumers have been more willing to spend on restaurant purchases. Despite the uptick in spending, consumers have remained budget-conscious, preferring less expensive food… The craze for fast-casual dining has led several new restaurants to enter the industry. Despite heightening competition, profit has expanded. However, restaurants have continued to benefit from declining input costs, forcing them to compete based on menu innovation.
The industry’s expansion will be underpinned by further market acceptance of Mexican-style food over the next five years. In addition, rising consumer spending will continue to support revenue growth, as will rising employment by reducing free time for consumers to cook their meals and arming them with more disposable income to spend at restaurants. Mexican restaurants will likely continue to adapt to changing consumer preferences for high-quality food by developing menu items that appeal to healthy pallets. Consequently, Mexican Restaurants’ revenue will increase an annualized 1.8% to reach $98.4 billion over the next five years.
Mexican Restaurants Industry – Trends and Insights
Mexican-style food has become a mainstream constituent of the American diet.
According to the Tortilla Industry Association, tortillas are now the second-most popular bread type in the United States after white bread, indicating the extent of Mexican foods’ foray into the mainstream.
External competition in the industry is rising.
The surge in popularity has also led businesses outside of the industry to include Mexican-style foods on their menus to capitalize on this growing market.
Mexican Restaurants Industry – Outlook (2023-2028)
Market size is projected to increase over the next five years.
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