Even fast-casual dining may be too much of a financial burden for younger generations.
Chipotle CEO Scott Boatwright said young diners between the ages of 25 and 35 are cutting back on dining at the Mexican-inspired fast-casual chain. But these millennial and Gen Z customers are not snubbing Chipotle for other fast food spots; they’ve stopped dining out as frequently altogether.
“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.”
My situation is better than most. I’m single so no spouse and have no children, and I grew up poor, so I already possess a lot of experience and knowledge one would need to navigate the current economic situation well.
And I’m not spending. The vast majority of the money I make goes into my investments, savings, and my mortgage. I cook 95% of what I eat. When I go into the office physically, I have my self-prepped meals and snacks I bought myself, because if you buy them at the office there’s a 200-300% upcharge. If I order a $15 shirt online and don’t like the fit, I package it up, walk it to the UPS store, and return it. If I bust a seam or tear something, I mend it myself by hand. When I had a car I did the minor repairs myself. I DO perform minor home repairs myself.
I can only imagine how difficult it is now for every working adult with kids, especially with child care costing the same as another annual income.
The people who do spend, however, can’t anymore, and the scary thing is, that doesn’t impact the wealth of truly wealthy in a meaningful way. Those people are planning for the crash, because for them, it’s just another buying opportunity.
see Naomi Klein’s The Shock Doctrine for extensive explanation of this.
https://en.wikipedia.org/wiki/The_Shock_Doctrine