Core Insights - Gen Z is experiencing significant financial pressure, impacting their spending habits at fast-casual dining chains, particularly among the 25-to-35 age group [1][4] - Same-store sales growth for Cava has slowed to 1.9% year-over-year, down from 18.1% in the previous year, leading to a stock decline of over 7% [1] - Chipotle and Sweetgreen have also reported challenges, with Chipotle's stock down over 50% this year and Sweetgreen's same-store sales declining by 9.5% [4][5] Economic Context - Unemployment for Americans aged 20 to 24 rose to 9.2% in August, up from 7.9% a year ago, while the overall unemployment rate is 4.3% [2] - The return of student loan collections in April 2023 has added financial strain, particularly for the 25-to-34 age demographic, which holds the second-highest amount of student loan debt [2] - Total student loan debt increased by $47 billion, credit card debt by $67 billion, and mortgage debt by $478 billion over the past year [3] Industry Impact - Chipotle's CEO highlighted that the company is "over-indexed" to the financially challenged 25-to-35 age group, facing headwinds from unemployment and slower wage growth [4] - Sweetgreen's performance has been negatively affected by "softer sales trends" in key markets, with a significant drop in spending among younger consumers [5] - Rent inflation is at 3.5%, further straining the financial situation of younger consumers [3]