Gen Z diners are changing the fast-food industry's approach | CBC News

"As fast food gets more expensive, young adults are pulling back on their spending, forcing restaurant chains to compete for their dollars through meal deals and promotions. It's really the price that has stopped me, and just the fact that it has become more of an inconvenience than it used to be, said Fatima Abdul Razzaq, a second-year electrical engineering student at Toronto Metropolitan University. You're spending $15 at least if you want to get a proper meal. And that's just not sustainable, said Marwan Al Kharrat, a second-year computer engineering student at TMU. It's too expensive. Can't afford it."

"Three-quarters of Canadians surveyed said they were dining out less frequently thanks to the rising cost of living, with that figure increasing to 81 per cent of people aged 18 to 34, according to an Angus Reid survey conducted on behalf of Restaurants Canada in June. That spells trouble for big chains trying to lock in the next generation of their core consumer base and some are already seeing an impact on sales."

"What we've noticed is a category slowdown for the 25-to-34-year-olds that are under the most financial pressure, said Stephanie Perdue, vice-president of brand marketing at Chipotle in Newport Beach, Calif., in an interview with CBC News. Chipotle, McDonald's expect lower sales Customers are served at a Chipotle in New York City. The company recently lowered its sales forecast for the third time this year. (Andrew Kelly/Reuters) During Chipotle's third-quarter earnings call last month, its chief executive, Scott Boatwright, suggested that at least in the U.S. the slowdown could be attributed to higher unemployment rates, slower wage growth and more debt."

Fast-food prices have risen, prompting many young adults to cut back on dining out and forcing restaurant chains to compete with meal deals and promotions. Students report that a proper meal now costs at least $15, which they call unsustainable and unaffordable. An Angus Reid survey for Restaurants Canada found three-quarters of Canadians dining out less, rising to 81% among 18-to-34-year-olds. Major chains face difficulty retaining the next generation of customers, and some are already seeing sales impacts. Chipotle reported a slowdown among 25-to-34-year-olds and lowered its sales forecast multiple times, citing economic pressures such as higher unemployment, slower wage growth and increased debt.

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