The Mexican franchise restaurant segment has seen remarkable growth, establishing itself as a vibrant and lucrative sector within the restaurant industry. According to a report by IBISWorld, the Mexican restaurant industry in the United States generated approximately $73 billion in revenue in 2023, with an annual growth rate of 3.5% over the past five years. This growth reflects the increasing fascination for bold flavors and diverse culinary experiences, with Mexican cuisine capturing the hearts of food enthusiasts globally.
Market Size and Appeal of Mexican Cuisine
- Expansive Market Reach: The allure of Mexican cuisine extends beyond borders, appealing to a wide array of demographics. As of 2023, Mexican restaurants accounted for nearly 9% of the total U.S. restaurant industry, showcasing their significant presence in the market.
- High Demand: Tacos, burritos, and other traditional dishes have become staples in many households. Data from the National Restaurant Association indicates that 78% of U.S. adults have eaten at a Mexican restaurant in the past year, highlighting the widespread popularity of the cuisine.
- Cultural Resonance: The rich cultural heritage associated with Mexican food contributes to its widespread popularity. The influence of Mexican culture in American dining habits continues to grow, driven by an increasing appreciation for authentic and traditional flavors.
Factors Contributing to the Popularity of Mexican Franchise Restaurants
Several factors have driven the rising popularity of Mexican franchise restaurants:
- Versatility: Mexican cuisine offers a variety of customizable options catering to different dietary preferences and tastes.
- Affordability: Many Mexican franchise restaurants offer value pricing, making them an attractive option for budget-conscious consumers.
- Quality and Freshness: A strong emphasis on fresh ingredients enhances the appeal of these establishments.
Investors looking for promising restaurant investment opportunities in 2024 should consider the thriving landscape of Mexican franchise restaurants. This article explores some of the best Mexican franchise restaurants to invest in, highlighting their unique offerings and financial potential.
Top Mexican Food Franchise Restaurants to Invest In
Ready to see which Mexican food franchises are the big enchiladas in the industry? Let’s unwrap these tasty opportunities!
1. Cilantro Taco Grill
Cilantro Taco Grill is revolutionizing the Mexican food industry, blending authentic flavors with a scalable model that’s rooted in the spirit of Mexican culture. Founded by Mexican immigrants, the brand has quickly become a standout in the market with 17 corporate locations in Chicago and over 100 in development across the U.S. As the future of Mexican food franchises, Cilantro Taco Grill brings real Mexican food to communities nationwide, offering an experience that Americans have been waiting for.
Why It’s Awesome:
• Prime territories are available
• Authentic flavors that’ll transport you straight to Mexico
• A growing brand that’s capturing hearts (and stomachs) everywhere
• A marketing partnership with Armando Christian Perez, AKA Pitbull
• Ranked #32 on the 2024 Fast Casual top 100 Movers and Shakers List
Cilantro Taco Grill Franchise Cost:
- Franchise Fee: $35,000
- Initial investment: $378,000 to $835,800
- Royalty fees: 6% of weekly gross sales
- Worldwide Creative Fund: 2% of weekly gross sales
- Get the FDD to see more
2. Del Taco
Del Taco is the second largest Mexican QSR concept in the United States. Having decades of experience in both franchising and restaurant experience, Del Taco is well known throughout the country. Del Taco is one of the original QSR brands serving freshly prepared foods including making their beans from scratch and offering fresh flavors (like Cilantro Taco Grill)
What Food They Serve:
Del Taco offers a diverse menu that includes:
- Tacos and Burritos: Del Taco is known for its delicious tacos and burritos, which come with a variety of fillings such as seasoned beef, grilled chicken, and fresh guacamole.
- Value Pricing: The “Buck & Under” menu features several items priced at $1 or less, making it an appealing choice for those on a budget.
- Unique Offerings: In addition to traditional Mexican dishes, Del Taco also serves American favorites like fries and burgers. This combination of cuisines attracts a wide range of customers.
Del Taco Franchise Cost:
- Franchise Fee: $35,000
- Initial investment: $1,312,200 to $3,085,000
- Royalty fees: 5% of Net Sales
- Advertising Fee: 4% of Net Sales
3. Chipotle
Chipotle has over 3,200 restaurants worldwide. Known for its commitment to making food from scratch, Chipotle has continued to grow year over year in the Mexican food restaurant segment.
Why It Rocks:
• Started in 1993 and now they’re everywhere
• Customizable options for picky eaters and food adventurers alike
• All about that “Food with Integrity” life
Chipotle Franchise Cost:
Franchising a Chipotle is the United States is not available, but they do partner with a franchising development group through the Middle East in Dubai and Kuwait.
4. Moe’s Southwest Grill: A Mexican Grill with a Southwest Twist
Moe’s Southwest Grill has been serving fast-casual Mexican food for 20+ years. There are 600+ locations worldwide and they continue to grow.
The Good Stuff:
• Founded in 2000
• Fun atmosphere
• Has been named a Franchise Times Top 400 Franchise
Moe’s Southwest Grill Franchise Cost:
- Franchise Fee: $30,500
- Initial investment: $745,325 to $1,819,050
- Minimum Liquid Capital Requirement: $300,000
5. Velvet Taco: Not Your Abuela’s Tacos
Velvet Taco is known for their wide variety of tacos – 20+ different kinds. The décor of a Velvet Taco Mexican restaurant franchise is vibrant urban-like which makes their restaurants fun destinations to try their wide array of tacos and Mexican food.
What Makes It Special:
• Gourmet tacos that’ll make your Instagram followers drool
• Creative flavors like Spicy Tikka Chicken (India meets Mexico, ¡olé!)
• Perfect for the foodie crowd
Velvet Taco Franchise Cost
- Like Chipotle, they don’t offer franchising in the United States, but they do have a partnership with Gulf Franchise Group for restaurants in the Middle East.
Why Cilantro Taco Grill Stands Out Among Mexican Franchise Restaurants
Out of all these mouth-watering options, Cilantro Taco Grill really brings the heat as one of the best Mexican food franchise restaurants to invest in. Here’s why:
- Keepin’ It Real: Authentic flavors that’ll make you feel like you’re dining in Mexico. Cilantro Taco Grill is a immigrant family-owned franchise with a rich heritage in Jalisco, Mexico.
- Prime Territories Are Still Available (But They’re Going Fast): Unlike some of these older brands, you have plenty of options available for where you want to place your Cilantro Taco Grill. Plus, the Fransmart development team supports franchisees as they look for their ideal real estate options. Reminder: To get your location before anyone else, you need to fill out an application.
- Bang for Your Buck: Competitive initial investment with tasty returns. Average sales per square foot are $1,083.58 according to the Item 19.
- Low Labor, Refined Systems: Cilantro’s team has built out a well-organized kitchen flow requiring only a few staff members to operate even during the busiest time of the day.
Wrapping It Up (Like a Burrito)
Investing in Mexican food franchise restaurants is like adding the perfect amount of hot sauce – it spices up your franchise investment portfolio and is one of the best franchise opportunities out there! Whether you’re leaning towards the fresh and authentic vibes of Cilantro Taco Grill or the quirky fusion flavors of Velvet Taco, there’s a Mexican food franchise out there with your name on it.
Remember, before you salsa your way into any investment:
- Check out the brand’s rep (is it as solid as a properly built taco?)
- Look at the support they offer (you don’t want to be left hanging like limp lettuce)
- Crunch those numbers (make sure they’re as satisfying as the crunch of a fresh tortilla chip)
Are you ready to join the fiesta and invest in one of the best Mexican food franchise restaurants? Your taste buds (and your franchise portfolio) will thank you.
