The Mexican Restaurant Industry grew by 2.5 percent in 2008. Despite the economic slowdown, the industry experienced decent growth and represents 2.2 percent of the national GDP and 24% of the tourism GDP, according to estimates provided by the National Chamber of the Restaurant Industry (CANIRAC). The restaurant industry in Mexico consists of approximately 35,000 restaurants in Mexico City and 250,000 nationwide, of which 96% are micro and small enterprises; and the remaining four percent consist of large restaurants. The industry generates more than 850,000 jobs throughout Mexico.

The Mexican restaurant industry is constantly evolving and therefore there is a constant demand for new technology. The industry reported annual sales of roughly USD $16 billion, although this figure probably understates actual sales. The lack of technology (especially in cold chain equipment) in Mexico and the increasing sophistication of the Mexican consumer generate business opportunities for U.S. restaurant equipment exporters. Competition for this market does exist from Chinese, Italian, and Spanish manufacturers.

In 2008, the total market for this sector surpassed USD $1.7 billion. Imports from the United States during 2008 decreased 0.8% compared to 2007.

In Mexico, a limited number of ovens and refrigerators are manufactured. However, most specialized manufacturing equipment is imported from the United States and other countries. Local production mainly consists of meat grinders, slicers, refrigerators, freezers, coffee makers, ovens, kitchen furniture and utensils, and generally lack the quality and technological level of U.S.-made equipment. These Mexican manufacturers are mainly small to medium-sized companies that employ less than 50 people. More complex, large scale, and specific machinery is not produced locally, therefore providing a market for U.S. exporters.

The industry is spread across the northeastern to the central part of the country; almost 45 percent of the industry is concentrated in Monterrey, Guadalajara and Mexico City.

The economic outlook for 2009 is conservative with less growth than experienced in the last few years.  It is expected that the hotel and restaurant industry will reduce its growth path during the first months of 2009, but will recover its dynamism during the last 3rd and 4th quarters.

The Mexican Restaurant Industry grew 2% in 2007, despite temporary closures of some businesses due to natural disasters such as hurricane "Dean" in the southern part of the country and the floods in the state of Tabasco.

The Mexican restaurant industry is constantly evolving and in need of new technology. The industry reported annual sales of about USD$16 billion, although this figure probably understates actual sales. The lack of technology in Mexico and the increasing sophistication of the Mexican consumer generate business opportunities for U.S. exporters of equipment for the restaurant industry.

In 2006, the total market for this segment surpassed USD 1.7 billion. The imports from the United States during 2007 increased almost two percent compared to 2006.

The industry is spread out from the northeastern to the central part of the country and almost 45 percent of the industry is concentrated in Monterrey, Guadalajara and Mexico City. Even though there is some local production, it generally lacks the quality and level of technology of U.S.-made equipment.

Best Products/Services

• Food warmers
• Food – temperature measurers
• Stainless steel utensils
• Catering equipment
• Tabletop centerpieces
• Smoke extraction and air purifiers systems

The Market Opportunity - Under NAFTA, most equipment for hotels and restaurants manufactured in the United States can be imported duty-free into Mexico. U.S. companies offering products for the hotel and restaurant equipment sector should develop efforts to introduce new products into the Mexican market. Interested companies should be aware that certain segments of the market are price sensitive.