Even fast-casual dining may be too much of a financial burden for younger generations.
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.
“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.”
You’re not wrong. That’s why whenever someone tells me that we’re not in a recession, I reflexively think: “What you mean is, rich people aren’t in a recession.”
Income inequality rising is a feature not a bug. Now let’s lower them interest rates to bouy asset prices while wages stagnate against inflation so we can maintain employment by making employees cheaper. We’re cooking with gas baby.
What is rich nowadays? Growing up, a $100,000+ salary was considered quite rich. No way that qualifies now.
I am, by many definitions, rich. By my mother’s generation and demographic I’d be considered almost unimaginably rich. In 2025 America though I am at best “comfortable”. I am rich enough to afford groceries, but I am not rich enough to not notice or feel the impact of a carry basket of groceries setting me back over $100. I am rich enough to afford health insurance but I am not rich enough to not sweat the premium bill and the deductible. I am rich and fortunate to enough to own a home, but I wonder how I will afford the ever increasing taxes and maintenance costs when I am no longer able to work. I worry that a single extended illness will wipe out most if not all of the wealth my wife and I have worked 30+ years for. So, I rarely eat out. I scaled down my spending. And I keep my focus soleky on caring for those I love.
When the system has degraded in such a way that only those with an 8+ (preferably 9) digit net worth can feel safe, then you can no longer expect the system to remain for much longer. To me, it feels like America was assassinated by Reagan and the Republicans and ever since, the people on the top have just been the maggots feasting on the rotting flesh. Its either going to be collapse or revolution.
My situation is better than most. I’m single so no spouse and have no children, and I grew up poor, so I already possess a lot of experience and knowledge one would need to navigate the current economic situation well.
And I’m not spending. The vast majority of the money I make goes into my investments, savings, and my mortgage. I cook 95% of what I eat. When I go into the office physically, I have my self-prepped meals and snacks I bought myself, because if you buy them at the office there’s a 200-300% upcharge. If I order a $15 shirt online and don’t like the fit, I package it up, walk it to the UPS store, and return it. If I bust a seam or tear something, I mend it myself by hand. When I had a car I did the minor repairs myself. I DO perform minor home repairs myself.
I can only imagine how difficult it is now for every working adult with kids, especially with child care costing the same as another annual income.
The people who do spend, however, can’t anymore, and the scary thing is, that doesn’t impact the wealth of truly wealthy in a meaningful way. Those people are planning for the crash, because for them, it’s just another buying opportunity.
see Naomi Klein’s The Shock Doctrine for extensive explanation of this.
https://en.wikipedia.org/wiki/The_Shock_Doctrine