Gen Z Driving Growth in Restaurant Traffic
Restaurant traffic increased by 1.1% year over year in July, with a notable rise in spending among lower-income consumers, particularly Gen Z, according to an analysis from the Bank of America Institute. This growth is attributed to easing menu inflation and wage increases that have boosted younger consumers' purchasing power. Despite macroeconomic uncertainties like rising fuel prices due to the Iran War, restaurant sales are showing resilience. Chains such as Cava reported strong traffic in lower-income areas by keeping pricing below general inflation rates. Independent restaurants also outperformed chains in terms of sales growth, and bars saw significant gains likely influenced by the 2026 FIFA World Cup. Gen Z's spending at all restaurant types rose by nearly double that of Millennials, with bar visits increasing between 9% to 12%. The report highlights a shift from grocery to dining out as consumers reallocate their food budgets.
Topics: Gen Z menu inflation restaurant traffic same-store sales spending power