Consumers’ digital engagement can bring various benefits to both brands and consumers. Besides, few studies investigated the outcomes of engagement with restaurant brands on Instagram. Therefore, this study aims to examine the effect of consumer engagement (CE) with restaurant brands on consumer-related factors (namely, consumer’s brand knowledge, perceived enjoyment and consumer social interaction) and brand-related factors (namely, e-WOM and brand reputation), as well as the mediating role of consumer-related factors. The sample consisted of 394 Instagram followers of restaurant/coffee shop brands, and covariance-based structural equation modeling and bootstrapping were used to assess the hypothesized relationships. The results show that CE with restaurant brands on Instagram enhances brand-related outcomes as well as consumer-related outcomes. Moreover, consumer-related factors partially mediate these relationships. The findings of this study provide insights for restaurant managers and digital marketers to stimulate consumer-brand engagement. To the best of the authors’ knowledge, this study is among the first that examines the effect of CE with restaurant brands on consumer- and brand-related outcomes on Instagram. The context of the study is Iran, which adds to the literature on CE that mainly focuses on developed countries.