""This group is facing several headwinds, including unemployment, increased student loan repayment, and slower real wage growth," Boatwright told investors at the company's earnings presentation on Wednesday. "We're not losing them to the competition. We're losing them to grocery and food at home." Boatwright noted Chipotle customers making less than $100,000-about 40% of Chipotle's consumer base-are also pulling back. "They feel the pinch; we feel the pullback from them as well," he concluded."
"Other fast food chains have noted the emergence of a two-tier economy -of high-income earners shelling out for meals, while low-income earners tighten their belts. This includes McDonald's, which has been largely propped up by customers willing to spend more money at the chain. "There's a lot of commentary around, 'What's the state of the economy, how's it doing right now?'" McDonald's CEO Chris Kempczinski told CNBC last month. "And what we see is, it's really kind of a two-tier economy. If you're upper-income, earning over $100,000, things are good ... What we see with middle- and lower-income consumers, it's actually a different story.""
""Chipotle CEO Scott Boatwright said young diners between the ages of 25 and 35 are cutting back on dining at the Mexican-inspired fast-casual chain. But these millennial and Gen Z customers are not snubbing Chipotle for other fast food spots; they've stopped dining out as frequently altogether. Chipotle cut its same-store sales forecast for its third consecutive quarter as quarterly revenue missed expectations and traffic declined by 0.8%, also its third straight dip.""
Young diners aged 25–35 are cutting back on dining out and shifting spending toward groceries and food at home. Financial pressures include unemployment, increased student loan repayment, and slower real wage growth. Customers earning less than $100,000—about 40% of Chipotle's base—are pulling back, reducing traffic and prompting three consecutive quarters of lowered same-store sales forecasts and missed revenue expectations. A two-tier economy has emerged where higher-income consumers continue spending while middle- and lower-income consumers tighten budgets. Fast food chains are responding with Gen Z–focused menu innovations to attract younger customers amid declining frequency of dining out.
Read at Fortune
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