Full-Service Restaurants in Mexico

PROSPECTS

Mexicans appreciate chance to indulge and the personal attention of full-service restaurants

Full-service restaurants experienced a strong performance in 2019 despite unsettling economic conditions. Many Mexicans appreciate the personal service provided by staff including the initial reception they receive to recommendations by their waiter, when dining with family or groups of friends.

Crowdfunding offers alternative source of finance for smaller chains and their expansion plans

A trend that was evident in cafés/bars, crowdfunding has also entered the full-service restaurant landscape, enabling smaller players to expand their presence. With further instability predicted for the local economy, a number of players are shifting towards alternative sources of finance to accomplish their expansion plans.

Unstable economy and reports of assaults in upmarket restaurants could restrict expansion plans to certain areas

While full-service restaurants is predicted to record a positive performance over the forecast period, growth rates across transactions, outlet numbers and current value sales are all set to noticeably slow compared to the review period. The unstable local economy in addition to the increasing number of unpleasant incidents, often shared through both the news and social media platforms, of robberies and assaults in upmarket restaurants can be discouraging to consumers looking to dine out in these establishments.

COMPETITIVE LANDSCAPE

Dominant independent operators continue to gain share as new brands continue to enter

Full-service restaurants remained a highly fragmented competitive landscape, where dominant independent operators continued to gain value share from chained players. This was supported by the increasing number of new names emerging including a new smart Asian full-service restaurant, Tokio Inc, which launched in Mexico City at the end of the review period to offer a combination of sushi and futuristic technology.

Fisher’s enters into strategic partnership with steakhouse Sonora Grill

Chained full-service player Grupo Fisher's entered into a strategic partnership with steakhouse Sonora Grill to create a new brand, which had yet to be named at the end of the review period. The outlet is based on the concept of combining produce from the land and the sea, more commonly referred to as “surf and turf”.

Increasing competition amongst delivery apps supports greater uptake of home delivery

While eat-in continued to dominate value sales within full-service restaurants in 2019, the trend to order home delivery through the channel continued to gain momentum with the latter recording the most impressive current value growth overall. Growing demand for home delivery is being mainly driven by online ordering due to the plethora of third party delivery apps that emerged in Mexico over the review period including Spain’s SinDelantal, China’s DiDi, Uber Eats from the US and the Colombian Rappi.

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