WSJ What’s News Are We in a Fast-Casual Restaurant Recession?
37 snips
Nov 16, 2025 
Matt Grossman, an economics reporter at The Wall Street Journal, and Heather Haddon, a restaurants reporter, dive into the struggles of fast-casual dining as Gen Z and millennials cut back on spending. They discuss the decline in visits to popular chains like Chipotle and Sweetgreen, attributing it to economic pressures on younger consumers. The duo explores how these chains are adapting, from digital engagement strategies to international growth plans, highlighting the shifting landscape of consumer behavior and spending trends.
AI Snips
Chapters
Transcript
Episode notes
Younger Diners Driving Slowdown
- Chains report a marked drop in visits from 25- to 35-year-olds, cutting frequency and hurting sales.
- This younger cohort makes up a large share of fast-casual customers and their pullback significantly dents results.
Economic Strain On 25–35-Year-Olds
- Executives tie the slowdown to economic pressures like student debt, childcare and stagnant wages for younger consumers.
- Companies say these pressures cause customers to stay loyal but visit less frequently, shrinking same-store sales and profits.
Labor Market Weakness Reduces Spending
- Younger workers face a softer labor market with fewer entry-level openings and slower wage growth.
- That weak early-career experience reduces routine spending patterns like eating out at fast-casual spots.