Gen Z and millennials are skipping restaurants to save money

The sticker shock shows no signs of receding.

According to a new report, 64% of U.S. adults say they are “very concerned” about inflation and its impact on household finances Morning Consultation Survey 2,210 people. To save money, they’re swapping out eating out for more affordable home-cooking options.

It is mainly young people and high earners who have put down the fork. The survey found that millennials and high-income consumers consistently spend the most at restaurants. By eliminating fees, they will have more savings than the rest of the population.

Restaurants, which the survey dubs “free dining”, are often the first to emerge when cuts are made across the board.Although the cost of food consumed away from home has grown more slowly than other commodities, and the 25- to 35-year-old age group Most Eating Out in History.

Overpriced entrees are also disgusting Gen Z

Gen Z is also limiting their dining experience.June’s report from NPD Group Gen Z diners were found to go to restaurants less often than their peers of the same age: In the 12 months ending February 2022, they went to restaurants 66 times less than Gen Xers did in 2002.

The report attributes this to pandemic fears and overpriced menus, but it’s also possible that 18- to 24-year-olds may have less disposable income than Gen Xers had at their age. After Gen Z enters the workforce 40 years of flat real wage growthand with record inflation, even the basics are out of reach for many.

Another potential reason, according to the NPD report: Vendors such as apparel, beauty and tech are marketing to younger consumers more than ever before. “Many apparel brands have successfully leveraged Gen Z values, such as diversity and empowerment, and thus captured a larger share of their spending,” the report said.

But the increased spending has made Gen Z more price-conscious. Half of Gen Z NPDs surveyed said menu price is their number one priority when choosing a restaurant.

Given that dining out has always been a large and reliable social activity, especially in big cities where young professionals live, the lack of restaurant sponsorships for Gen Z is notable, and the industry can pay a high price if it doesn’t adapt.

As NPD’s food industry consultant David Portalatin writes: “Understanding menu items to emphasize, food attributes [Gen Z] The menu innovations that seek and attract them, as well as the advertising platforms they love, will help you win over this precious generation. “

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