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Inflation Forces Young Diners to Cut Restaurant Spending

Kavout

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This episode reports on the fast-casual dining industry's struggle due to younger consumers drastically cutting back on spending, particularly Gen Z and Millennials. Major chains like Chipotle and Cava are experiencing reduced customer traffic and missed sales targets, as economic pressures like inflation, student debt, and a difficult job market force this demographic to prioritize cooking at home. Several articles feature quotes from restaurant executives, such as Chipotle's CEO Scott Boatwright, acknowledging that the perception of the fast-casual sector as unaffordable is impacting sales and stock performance. Data from Black Box Intelligence confirms a reversal in traffic growth in younger zip codes during 2025, indicating that financial hardships are pushing younger generations to live more "paycheck to paycheck." This shift highlights a broader economic challenge where rising costs have diminished the perceived value of eating out, compelling companies to focus on loyalty programs and targeted offerings.

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