"He said that customers in the 25- to 35-year-old age group were "particularly challenged," a trend he said was not unique to Chipotle. This cohort, which includes older Gen Zers and younger millennials, makes up about 25% of the chain's total sales, per Boatwright. "This group is facing several headwinds, including unemployment, increased student loan repayment, and slower real wage growth," the executive said."
""We're not losing them to the competition. We're losing them to grocery and food at home," Boatwright said. He said they were not avoiding Chipotle entirely, just coming by less frequently. "They feel the pinch, we feel the pullback from them as well," he added. Chipotle on Wednesday released its third-quarter results, reporting a 7.5% revenue increase to $3.0 billion compared to the same period a year before."
Chipotle reported that younger and lower-earning customers are patronizing its restaurants less frequently. Customers earning under $100,000 represent about 40% of Chipotle’s sales and have pulled back spending. The 25- to 35-year-old cohort, comprising about 25% of sales, is particularly affected. That group faces unemployment, increased student loan repayments, and slower real wage growth. Company executives said those customers are shifting purchases to grocery and food at home rather than competitors. Chipotle posted third-quarter revenue of $3.0 billion, a 7.5% increase, while same-store sales remained flat. The chain has introduced loyalty programs and promotions to attract customers.
Read at Business Insider
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