Even fast-casual dining may be too much of a financial burden for younger generations.
“This group is facing several headwinds, including unemployment, increased student loan repayment, and slower real wage growth,” Boatwright told investors at the company’s earnings presentation on Wednesday. “We’re not losing them to the competition. We’re losing them to grocery and food at home.”
Boatwright noted Chipotle customers making less than $100,000—about 40% of Chipotle’s consumer base—are also pulling back.
“They feel the pinch, we feel the pullback from them as well,” he concluded.
“Through our research, we found that over 90% of Gen Z consumers say they would visit a restaurant just for a new sauce,” Boatwright said on Wednesday.
Chipotle did not immediately respond to Fortune’s request for comment.
“We’re already seeing that young people are having a hard time getting a foothold on the homeownership ladder,” George Eckerd, wealth and markets research director for JPMorganChase Institute, told Fortune. “They’re delaying home purchases because they need to climb further up their career ladder to be able to afford it all, and that career ladder is getting flatter.”
