Why are Gen Z avoiding fast-casual restaurants like Chipotle?

Gen Z is cutting back on fast-casual visits due to financial pressures like student loans and slow wage growth, as reported by company CEOs.

Which fashion brands are attracting Gen Z shoppers?

Brands like Coach and Kate Spade, under the Tapestry umbrella, are seeing increased interest and sales from Gen Z consumers.

Does Gen Z prefer luxury items or saving money?

While showing interest in designer brands, Gen Z overall prioritizes saving, with most waiting for sales and fewer willing to pay full price.

Home / Business and Economy / Gen Z's Spending Shock: Luxury Up, Fast Casual Down

Gen Z's Spending Shock: Luxury Up, Fast Casual Down

27 Nov, 2025

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Summary

Gen Z prioritizes sales, with 80% waiting for discounts.
Fast casual chains like Cava and Chipotle see fewer young visitors.
Designer brands like Coach see increased Gen Z interest.

Gen Z's Spending Shock: Luxury Up, Fast Casual Down

Gen Z presents a unique challenge for retailers, exhibiting a tendency towards "affordable affluence." This demographic is increasingly avoiding fast-casual restaurants, with Cava and Chipotle noting a decline in younger patrons. CEOs attribute this shift to economic factors like unemployment and student loan burdens.

Conversely, the allure of luxury fashion is growing among Gen Z. Tapestry, parent company of Coach and Kate Spade, reported significant sales growth, largely driven by new, younger customers. The brand highlights Gen Z's fashion engagement and surprising loyalty, debunking myths about their transient shopping habits.

Overall, Gen Z demonstrates a strong inclination towards saving. PwC reports that a significant majority wait for sales, with only a small fraction willing to pay full price. This cautious spending approach defines their current market behavior, making them a complex target for brands.