Are We in a Fast-Casual Restaurant Recession?

WSJ What’s News

The Wall Street Journal

Daily News, News

4.1 • 4.2K Ratings

🗓️ 16 November 2025

⏱️ 12 minutes

🔗️ Recording | iTunes | RSS

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Summary

Gen Z and Millennials are tightening their purse strings, and the first businesses on the chopping block are fast-casual dining spots. The usual fan favorites like Chipotle, Sweetgreen and Cava are suddenly falling out of favor with young American consumers. WSJ reporters Heather Haddon and Matt Grossman discuss how these companies are responding, and what this shift says about the broader economy. Caitlin McCabe hosts. Further Reading Chipotle’s Big Bet on Younger Consumers Is Unraveling Are the Economy’s Salad Days Over? Chipotle Says Gloomy Consumers Are Buying Fewer Burritos Fast-Casual Chains Struggle as Diners Ditch Pricey Bowls for Cheaper Eats Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:07.2	We had a few people who were used to PCs and this was their first foray into Macs.
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0:23.6	HelloVet.
0:29.1	Hey, what's news listeners.
0:30.9	It's Sunday, November 16th.
0:33.1	I'm Caitlin McCabe for the Wall Street Journal, and this is What's New Sunday, the show where we
0:37.8	tackle the big questions about the biggest stories in the news by reaching out to our colleagues
0:43.1	across the newsroom to help explain what's happening in our world.
0:47.3	On the show this week, we're taking a look at the young American consumer and why they're
0:51.8	starting to break up with fast casual restaurants.
0:55.0	You could call it burrito belt tightening or a salad slump, but one thing is clear.
1:01.0	Chains like Chipotle, Sweet Green, and Kava are falling out of favor with Gen Z and millennials.
1:07.0	The younger cohort that's 25 to 35 nutrition, they don't have the scheme that they had last year in the way that they were visiting
1:14.6	where their frequency of visiting.
1:16.6	So the 25 to 35 consumer is the most under pressure and they make up about 30% of our
1:23.6	consumer base and they're down about 15%. We believe that this trend is not unique to Chipotle, it's occurring across all restaurants,
1:32.6	as well as many discretionary categories.
1:35.8	This shift is raising questions among analysts and investors about what's ahead for these companies.
1:42.2	But more broadly, it's also sparked concern about the economic
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