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Gen Z and millennials are cutting fast-casual dining due to inflation, hurting Chipotle, Sweetgreen, and CAVA sales.
Fast-casual chains Chipotle, Sweetgreen, and CAVA are seeing declining customer traffic and sales, especially among Gen Z and millennials, as inflation and economic pressures reduce dining out.
Chipotle reported a 0.8% drop in traffic and missed earnings, with its stock down nearly 49% year-to-date.
Younger consumers are cutting back due to high living costs, student debt, and unemployment, shifting to home cooking.
Sweetgreen and CAVA also posted weaker results, with Sweetgreen noting a 15% spending drop from the key demographic.
While fast food chains offer cheaper alternatives, the fast-casual sector is struggling to retain customers despite efforts like menu changes and rewards programs.
La generación Z y los millennials están recortando la comida rápida y casual debido a la inflación, perjudicando las ventas de Chipotle, Sweetgreen y CAVA.