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.”
It’s not just fast food, it’s everything and almost everyone. I work sales for a luxury brand in a very affluent area. Our year over year sales numbers have plummeted, even when our client base is very well off. People are hanging on to their old product longer or just flat out buying cheaper versions. The only ones who aren’t feeling a real pinch are the metal credit card holders who make over 500k.