There’s a Wayne Gretzky quote that always seems particularly relevant whenever we take a look at consumer trends among our youngest consumers: “Skate to where the puck is going to be, not where it has been.” In other words, how should restaurants be preparing for the influx of business from Gen Z and Gen Alpha consumers as they swiftly gain discretionary spending power? (And most signs point to a tremendous amount of spending power…)
That’s why it’s important to pay attention to Piper Sandler’s semi-annual “Taking Stock with Teens” survey, the latest of which was released Tuesday. It shows, once again, Chick-fil-A is the favorite restaurant brand among over 9,000 U.S. teenagers with an average age of 15.7, with 16% of the demographic’s vote.
At No. 2 is Starbucks, with 13%, then McDonald’s at 9%, Chipotle at 8%, and Raising Cane’s at 3%.
The order has shifted a bit from years prior with the exception of Chick-fil-A and Starbucks, which have remained in the top two spots, respectively. McDonald’s has gained a significant amount of traction this year – 6% in the spring to 9% now – likely driven by the company’s intensified focus on marketing toward younger consumers through its Famous Orders, by leveraging the Grimace Shake Challenge on TikTok, and with collaborations with brands like Cactus Plant Flea Market.
McDonald’s has also shifted much of its attention to its digital business, and digital sales now represent nearly 40% of systemwide sales in the U.S. market. This complements teens’ inclinations, as mobile devices remain the No. 1 method for preferred customer service interactions, according to the survey. Nearly 90% of teens own an iPhone, by the way.
Raising Cane’s is also a highlight from the fall survey, making its debut at No. 5 with 3%, replacing Olive Garden, which has jockeyed at No. 5 with Dunkin’ and Taco Bell since 2020. Raising Cane’s appearance could be driven in part by its recent partnership with musician Post Malone, who has received multiple awards, including American Music Awards, Billboard Music Awards and an MTV Video Music Award.
Also of note from the fall survey, teenagers report that they’ve reined in their spending, which is down 1% year-over-year to $2,316. Piper Sandler states that this is the first spending decrease reported from the cohort since pre-Covid. Not coincidentally, inflation is now the No. 2 social concern, behind the environment.
“Our survey points to initial signs of a slowdown in teen spending. Inflation reached its highest mindshare in terms of political and social issues, right behind the environment,” Edward Yruma, senior research analyst, said in a statement.
Another data point that could have industry implications? The number of teens that consume or are willing to try plant-based meat has hit an all-time low with 35% in fall 2023 vs. 49% in spring 2021.
Here’s a look at brand rankings from previous surveys dating back to 2020:
Spring 2023
- Chick-fil-A, 13%
- Starbucks, 12%
- Chipotle, 7%
- McDonald’s, 6%
- Olive Garden, 3%
Fall 2022
- Chick-fil-A, 15%
- Starbucks, 12%
- Chipotle, 7%
- McDonald’s, 6%
- Olive Garden, 3%
Spring 2022
- Chick-fil-A, 15%
- Starbucks, 11%
- Chipotle, 8%
- McDonald’s, 6%
- Olive Garden, 3%
Fall 2021
- Chick-fil-A, 16%
- Starbucks, 10%
- Chipotle, 5%
- McDonald’s, 5%
- Olive Garden, 4%
Spring 2021
- Chick-fil-A, 15%
- Starbucks, 11%
- Chipotle, 7%
- McDonald’s, 4%
- Dunkin’, 3%
Fall 2020
- Chick-fil-A, 16%
- Starbucks, 9%
- McDonald’s, 5%
- Chipotle, 5%
- Olive Garden, 4%
Spring 2020
- Chick-fil-A, 16%
- Starbucks, 9%
- McDonald’s, 6%
- Chipotle, 5%
- Taco Bell, 4%
Contact Alicia Kelso at [email protected]