Is Gen Z Destroying the Restaurant Industry? #restaurant #genzmoney #genz #economy #foodshorts

Are Jenzers destroying restaurants? Over the last few years, there have been a number of high-profile bankruptcies and closures in the industry like TGI Fridays, Denny's, and Red Lobster. Some have blamed young people for not valuing the social aspect of traditional sitdown restaurants, preferring a grab-and- go and delivery options instead. But then in late 2025, even the CEO of Chipotle complained that Gen Z's dining habits were starting to impact casual outlets, too. There are bigger economic forces at play. The job market is especially tough for young people right now. Housing is getting steadily less affordable and student debt, which had been on pause for several years, recently kicked back in, contributing to one of the steepest generational declines in credit scores ever. It's no wonder that many young people are being cautious with their disposable income. Jenzers still go out to eat, but their habits are different from older generations. They're more likely to split dishes or order off the kids menu to save money and minimize calories. They also drink less alcohol, which has traditionally been a big profit margin for restaurants, and they're more likely to patronize restaurants that they hear about from peers or on social media rather than through traditional advertising. This may put a strain on legacy chains like Applebee's and Boston Market, but it hardly means the industry is dying. Restaurants will just have to evolve and adjust to their new customers preferences.