"Gen Zers and millennials are cutting back on dining out, hurting America's biggest fast-casual chains. Chipotle, Cava, and Sweetgreen reported earnings in the last two weeks, and all three reported the same problem: Diners age 25 to 35 are visiting their stores less frequently as theypinch pennies. The chains offering what's colloquially called slop bowls became a hit in the US for diners seeking something fresher, more customizable, and healthier than fast food with quick service."
"Chipotle's CEO, Scott Boatwright, said on an October 29 earnings call that the 25 to 35 age group isfacing financial issues "including unemployment, increased student loan repayment, and slower real wage growth." He said they were patronizing Chipotle less. "We're not losing them to the competition. We're losing them to grocery and food at home," Boatwright said. "They feel the pinch, we feel the pullback from them as well," he added."
Diners aged 25 to 35 are visiting Chipotle, Cava, and Sweetgreen less frequently as younger consumers face unemployment, higher student-loan repayments, slower real wage growth, and rising living costs. Many younger customers are cutting dining out first and shifting spending toward groceries and food at home. Fast-casual chains face additional pressure from lower-priced fast-food competition. Investors reacted with notable stock declines for all three chains. Analysts contend that simply lowering menu prices is unlikely to fully reverse the decline in visits from this key demographic without addressing broader economic and behavioral shifts.
Read at Business Insider
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