Younger consumers are dining out less at Chipotle and Cava while still buying Coach handbags

Chipotle and Cava have attributed softer sales to a pullback among younger patrons, who are increasingly choosing to pack lunches rather than eat out. By contrast, Coach’s parent company Tapestry reported that Gen Z customers are actively buying its handbags for work, helping to drive stronger-than-expected quarterly results and prompting the firm to raise its full-year outlook.

Tapestry said the quarter’s performance was supported by gains in new customer acquisition, with more than 2.2 million new customers added globally in the fiscal 2026 first quarter. The company reported that roughly 35% of those new customers came from Gen Z, a cohort commonly defined as those aged about 13 to 29, and noted high retention among the younger cohort. Tapestry posted adjusted earnings per share of $1.38 for the quarter compared with LSEG consensus of $1.26, and revenue of $1.70 billion versus the $1.64 billion expected. Net income for the three months ended Sept. 27 rose to $274.8 million, or $1.28 per share, from $186.6 million, or $0.79 per share, a year earlier, and revenue increased from $1.51 billion. The company lifted its full-year revenue target to about $7.3 billion, implying 4%–5% growth, and now expects adjusted diluted EPS of $5.45 to $5.60, up from prior guidance of $5.30 to $5.45. Despite the upgraded outlook and beat, Tapestry’s shares declined more than 9% on the day.

Tapestry Chief Executive Joanne Crevoiserat said the brand’s appeal to Gen Z reflects strong fashion engagement among younger shoppers and challenged the notion that these consumers are not loyal. In contrast, Cava’s chief financial officer, Tricia Tolivar, told CNBC that the fast-casual chain is seeing reduced demand among 25- to 34-year-old diners, attributing the pullback to higher unemployment in that group, the resumption of student loan repayments and broader tariff-related uncertainty. Chipotle CEO Scott Boatwright similarly reported that visits have fallen among younger customers, especially those aged 25 to 35.

Broader consumer surveys support a more cautious outlook for Gen Z spending this holiday season. PwC’s holiday survey found Gen Z plans to cut average holiday spending by 23% versus a year ago, while a Deloitte survey reported that Gen Z expects to spend 34% less this season; millennials surveyed said they plan to reduce spending by an average of 13%. These trends underscore a divergence in where younger consumers allocate their budgets — pulling back on frequent dining out while continuing to spend selectively on fashion.