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I have website providing restaurant menus for hundreds of restaurants, currently I am providing subdomains for each restaurant such as restaurant1.my-website.com

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but many customers request to use their own domains to show their menu, for that I would like to point (mirroring) their domains to my subdomains in my website such as

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I was thinking to use CNAMEs in my hosting, but it will be a big list of CNAMEs and not sure if hosting service can handle that number of CNAMEs

is there any way to point their domains to my subdomains in the website ?

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Your customers could alias their domains to your subdomains without your intervention. (From a DNS standpoint, there's nothing you need to do.)

If you're serving over HTTPS, your customers will have issues connecting. Your certificate(s), won't cover their domains and hostname verification will fail. Ultimately, your server certificate(s) will need to cover their domains.

From a security standpoint, a certificate per subdomain is your best option, but it will increase your operational burden and cost, as you will need a public certificate per subdomain.

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