More Mainstream and More Sophisticated 

Among non-Mexican chains, over the last 5 years, most segments have increased the number of Mexican items.   The Casual Dining segment has gone from an average of 7.0 items in (1997) to 7.3 items (2002), steak dinnerhouses from 4.5 to 6.2, Italian from 2.0 to 3.5.  Pizza chains have gotten into the act, going from 1.9 items to 2.8 Mexican items, and sandwich shops now have 2.3 Mexican items versus a previous 1.4. About the only exception is family dining, where the number of Mexican items per chain has actually decreased from 4.4 to 3.3.  Family Dining chains (75%), Casual Dining Chains (60%) and Steak/ BBQ chains (60%) are more likely than other segments to menu at least one Mexican item.        

                                                    

Growth in Non-Mexican Segments

Leading Items With Tortillas

Base: menu items with tortillas in non Mexican chains

The continuing popularity and growth of Mexican items is evident when we drill down into our MenuBook™ database of over 35,000 menu items from over 400 restaurant chains.  Among non-Mexican chains, the usual items lead the way with the greatest menu shares going to items such as burritos, nachos, fajitas and tacos. (see chart, left).   When we drill down a little deeper, we see that the fastest growing menu items are fajitas (+39%), enchiladas (+67%), and quesadillas (+26%).  Also the use of tortillas as a side item (+55%) or in a wrap (+92%) shows solid growth.  Some items, however, like salads (taco bowl or strips) have actually declined (-6%). Naturally, growth patterns are different by market segment and protein type.

Mexican Independents Lead the Way

With everyone putting more Mexican on the menu, where does one go to make their Mexican offerings continue to be different and interesting? One place Mexican chains are looking is Mexican independents, where recipes are calling for more authentic ingredients which are also becoming more available. We see an increase in the use of peppers beyond jalapeno, like serrano, habanero, chipotle, ancho chili, pasilla, anaheim, guero and others. Also on the rise is greater usage of vegetables and fruits like plantain, jicama, mango, tomatillos, more exotic mushrooms and black beans. Source: Menus from 20 Independent Mexican Restaurants, all regions of US. 

Market Size and Growth

Mexican cuisine presents tremendous opportunity to romance the menu and thereby demonstrate uniqueness and creativity. 

El Torito’s Pollo en Achiote-------roasted half chicken in a citrus/chili marinade with a relish of yellow pepper, habanero, red onion, tomato, orange juice, vinegar and spices.

Friday's Grilled Chicken Fajitas-------with guacamole, pico de gallo, colby cheese, flour tortillas, bell peppers, onions and black bean soup

In non Mexican chains, Flavor preferences for Tortillas (where specified on the menu), favor Corn over Flour by a ratio of three to one. Tortilla growth is being fueled by increases in tortilla use as a side item accompanying center of the plate items.  Growth is also coming from non Mexican items such as spring rolls, wrap sandwiches and appetizer dips (spinach artichoke dip). 

According to Tortilla Industry Association, a manufacturer trade association based in Texas , Americans (at home and away from home) consume upwards of 120 billion tortillas equal to an estimated $5.0 billion in sales.  An estimated (by TIA) 50% to 60% is consumed in foodservice. 

Close to 30% of foodservice operators purchase bulk packed tortilla/ nacho chips (to the tune of almost 100 million pounds per year), with an unknown percentage of operators cooking their own chips.

 

Leading Sauces: Salsa and Cheese Sauce

Thirty (30%) of foodservice operators in all commercial and non-commercial market segments purchase fully prepared salsa accounting for a total foodservice market size close to 50 million gallons.  The nacho cheese sauce market approaches 20 million gallons, with about one in five operators purchasing the category.

Mexican independent and Mexican chain restaurants are also more likely to use more authentic Mexican sauces beyond salsa and nacho.  For example Tomatillo, Chipotle Sauces, Mole, Salsa Verde, Pico de Gallo, Tomalito Corn Sauce, Ranchera Sauce, Spanish Sauce, Chili Meat Sauce, Guajillo Sauce, Picadillo Sauce, Ancho Chili Sauce, Pumpkin Seed Sauce and others.

Thirty (30%) of foodservice operators in all commercial and non-commercial market segments purchase fully prepared salsa accounting for a total foodservice market size close to 50 million gallons.  The nacho cheese sauce market approaches 20 million gallons, with about one in five operators purchasing the category.  

Source: Brand Equity Share Trends™, the BEST™ Report 

Proteins on the Menu

Out of 176 non-Mexican chain menus analyzed, chicken is the leading protein with a 47% share of total protein compared to Beef (39%), Seafood (7%), Pork (5%) and Turkey (2%).  By contrast, an analysis of menus from 41 Mexican chains/ independents shows Beef (42% share) ahead of Chicken (40%).  Seafood in Mexican segments, with an 11% share of total protein, is more popular than non Mexican chains (7% share).  Pork use in Mexican restaurants (7% share of menu items) is slightly ahead of Pork use in non Mexican chains (5%).  While the use of Turkey in Mexican restaurants is negligible (<1%), in non Mexican chains it is a respectable 2%

Cheese Topping

Far and away, cheddar and jack cheese are the most frequently used cheeses in Mexican restaurants accounting for 41% each of total menu mentions.  This pattern is mirrored in non Mexican restaurant chains menuing Mexican.  In this group, cheddar and jack are accompanied on the menu by cheeses identified with other ethnic including mozzarella, parmesan. 

 Menu Price Trends

--QSR: "very little price movement over time"

--Midscale: "prices up  3% to 5% per year"

--Casual: "$2 to $3 spread with midscale---staying competitive"