*Leading restaurant chains are signaling troubling economic trends as they report weakening consumer spending, particularly among lower-income Americans. ABC News reports that the concerns come as household debt reaches record levels.
Chipotle Mexican Grill recently issued a stark warning, reversing its growth forecast for 2025 and now anticipating a decline in same-store sales. CEO Scott Boatwright pointed to “persistent macroeconomic pressures,” noting the “gap has widened” between low-income and affluent customers.
Customers earning below $100,000 annually represent 40% of Chipotle’s sales. This group is dining out less due to “concerns about the economy and inflation,” Boatwright said.
“While we continue to see persistent macroeconomic pressures, our extraordinary value proposition and brand strength remain strong,” said Boatwright. “Our best-in-class teams are focused on doubling down on restaurant execution, sharpening our marketing message, accelerating menu innovation and creating more engaging digital experiences to ensure we emerge stronger and get back to driving positive transaction growth.”
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The Sweetgreen food chain reported a nearly 10% decline in same-store sales for the quarter ending in September. Chief financial officer Jamie McConnell said the company is “seeing a step down” in consumer performance, particularly among younger demographics.
“The [age] 25 to 35 consumer is the most under pressure, and they make up about 30% of our consumer base,” McConnell said, noting sales among low-income and young customers dropped in the recent quarter.
“Amid a challenging macro backdrop, our priorities remain clear: delivering operational excellence, accelerating menu innovation, and driving disciplined growth. We are focused on the process of building a strong foundation, and I am extremely confident that our leadership team and focused strategy will lead Sweetgreen back to sustained, profitable growth,” said Jonathan Neman, Co-Founder and Chief Executive Officer of Sweetgreen.
McDonald’s CEO Christopher Kempczinski said traffic from low-income customers dropped “nearly double digits,” a trend mirrored by Wingstop, which reported falling same-store sales in predominantly low-income areas. CEO Michael Skipworth warned the downturn had expanded to “more geographies as well as to the middle-income consumer in some areas.”
“We believe this is only temporary,” Skipworth said, adding: “None of us can predict the duration.”
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