Mexico’s Restaurant Growth Stalls Amid Insecurity, Weak Demand

Mexico’s restaurant industry is grappling with stalled growth in 2024 due to rising insecurity, economic uncertainty, and weak consumer demand, according to the National Chamber of the Restaurant Industry (CANIRAC).

Ignacio Alarcón Rodríguez, President, CANIRAC, warned that the sector is unlikely to achieve even 1% growth this year if current conditions persist. This is a stark decline compared to the 4.5% expansion recorded in 2023, which had initially fueled optimistic projections of over 5% growth for 2024.

“Security is the number one issue, followed by uncertainty. People are hesitant to spend because they are unsure whether they will keep their jobs in the coming months,” Alarcón told El Financiero. “Uncertainty leads to lower spending and reduced consumer activity.”

In response, restaurants have increased security investments by up to 8%, with 99% of establishments now equipped with surveillance cameras, alarm systems, and, in some states, emergency buttons linked to local C5 or C4 command centers. Additionally, some businesses have hired private security guards and implemented enhanced safety protocols.

Local CANIRAC chapters have raised concerns across several states. In Morelos, the chamber requested increased police presence during the Easter holiday to protect tourists in high-crime areas. In Puebla, CANIRAC urged the state government to improve safety coordination in food corridors, citing inadequate municipal responses to robberies. In Culiacan, up to 8% of food businesses have closed due to security issues, while 90% of those still operating now close by 8 p.m., according to Alarcón.

CANIRAC is calling for stronger government action to address safety and economic challenges, emphasizing that decisive measures are essential for the sector’s recovery and growth.