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Newsweek
5 days ago
- Business
- Newsweek
Could Gen Z Kill Off the American Hamburger?
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The hamburger could be on its way out as its spotlight seems to be being taken over by the rise of chicken sandwiches. Experts who spoke to Newsweek attribute this shift in consumer demand in part to Gen Z's growing interest in sustainability and health. Between 2019 and 2024, approximately 2,800 chicken restaurants opened in the United States, while about 1,200 burger joints shut down, according to The Sunday Times, citing Circana's 2025 trends report. During the same time frame, the consumption of fried chicken sandwiches in restaurants increased by 19 percent nationwide, while the consumption of hamburgers declined by 3 percent. Visits to chicken restaurants have also been outpacing consumer trips to other fast-food and fast-casual restaurants, increasing by 4.3 percent year-over-year in the third quarter of 2024, according to the trends research firm Chicken chains also outperformed other restaurants in 2024 in the hamburger category, according to Circana's 2025 Definitive U.S. Restaurant Ranking Report. To qualify for Circana's Top 50 ranking, a restaurant must have an annual consumer spending of more than $1.35 billion, and McDonald's and Chick-fil-A, both of which sell chicken sandwiches, were two of the restaurants leading the way, generating over $100 billion. Photo-illustration by Newsweek/Getty Commenting on the shifting preferences, McDonald's told Newsweek that "chicken remains a major priority for McDonald's." The fast-food chain also pointed Newsweek to CEO Chris Kempczinski's recent message that McDonald's was "excited about the significant opportunity we see within our chicken portfolio and see the potential to add another point of chicken market share by the end of 2026." Kempczinski spoke about the success of the McCrispy, one of the company's chicken sandwiches, which he said is "now in over 70 markets." McDonald's also recently launched the new McCrispy Strips, stating, "We've been listening to our fans on social and beyond, and they have made one thing clear: they want more chicken." The company told Newsweek that it is "exploring exciting chicken LTOs - like the popular Chicken Big Mac that hit U.S. restaurants for a limited time in 2024." Major chicken chains have also noticed this growing demand for chicken burgers, and Amy Alarcon, vice president of Culinary Innovations at Popeyes Louisiana Kitchen, told Newsweek: "Our chicken sandwiches continue to be a standout menu item for us, they've truly become a cornerstone of the Popeyes line up." She said that since Popeyes launched its chicken sandwich in 2019, they have seen "consistent demand and strong guest loyalty." Alarcon added that they've also expanded the category with "flavor innovations like our Pickle Glazed Chicken Sandwich, which brought a bold flavor twist and drove a lot of excitement." "The appetite for high-quality chicken sandwiches hasn't slowed down, it's only growing," Alarcon said. She added that she thought the growing demand for chicken sandwiches was because flavors can be more creative compared to traditional beef burgers. "The rise of global flavors and premium ingredients has opened up creative territory in the chicken space that's harder to achieve with traditional hamburgers," she said. Given consumers' increasing appetite for chicken sandwiches over burgers, Alarcon said this trend has "reinforced our commitment to continuing innovation in this space. "We're exploring new formats, flavors and builds that stay true to our Louisiana roots but also push boundaries in craveable, exciting and unexpected ways." More broadly, the consumption of chicken has been increasing in the United States, while consumption of beef has declined, as illustrated in the graph below. Discussing the reasons behind the growing consumer demand for chicken over beef, Harry M. Kaiser, a professor of applied economics and management at Cornell University, told Newsweek that, firstly, "chicken is a lot less expensive than beef." "In 2024, the average price of beef was a little over $8 per pound, while the average price of chicken was just under $2 per pound," he said. Secondly, chicken is considered "healthier than beef, and people have become more health-conscious over time," Kaiser said. He added that this could be why a switch to chicken is happening among products like hamburgers, "which have a higher fat content." As the country becomes increasingly weight-conscious, with the rise of weight-loss drugs like Ozempic, more Americans seem to be choosing chicken over beef, Jill J. McCluskey, director of the School of Economic Sciences at Washington State University, told Newsweek. She said that she is currently researching "how consumers' grocery store purchases change after starting GLP-1 drugs, for example Ozempic, and chicken purchases increase after the consumer starts these drugs." There also appears to be a sustainability factor behind America's changing consumer demands, as there is "a perception that burgers are unhealthy and bad for the environment," McCluskey said, adding that "chicken is perceived as more sustainable and healthier." This is particularly relevant for Gen Z, she added, as "Gen Z consumers care more about sustainability than past generations." In a 2020 study by First Insight, Inc., 73 percent of Gen Z participants surveyed indicated that they would pay more for sustainable items, with the majority also willing to pay a 10 percent price premium. Gen Z's passion for sustainability was also highlighted in a 2024 report by Innova Market Insights, which found that 34 percent of Gen Z reported being concerned about the planet's health, the highest percentage among any generation surveyed in the report. Kaiser also noted that Gen Z tends to prefer chicken over beef, adding that "younger people eat less meat, and a lot less beef than older generations." According to findings from Technomic's Q4 2023 North American Meat Institute Protein PACT consumer report, cited by National Hog Farmer, 51 percent of Gen Z respondents reported eating more chicken in the past year, which was higher than the average of 41 percent. High-protein diets are a growing preference in the U.S. and were the most followed diet in the country in 2024, according to data from Statista. Given Gen Z's concern for the environment and animal welfare, most people in America who identify as vegetarians fall within that age range, the data said. It suggests that Gen Z generally tends to opt for environmentally friendly meat sources, such as poultry, or refrain from eating meat altogether. McCluskey said that she expected the demand for chicken "to continue to expand, capitalizing on the perception that it is healthier and better for the environment."
Yahoo
19-04-2025
- Business
- Yahoo
Circana: Restaurant traffic stalled in 2024, but diner spending rose 2%
This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. Consumer spending at restaurants rose 2% in 2024, according to Circana's 2025 Definitive U.S. Restaurant Ranking Report. Consumers spent $1 million at restaurants every minute last year and almost everyone in the United States went to a restaurant within the top 50 chains, Circana said. Restaurants within the top 50 chains each capture e annual consumer spending of over $1.35 billion. These restaurant chains comprise 61% of the entire restaurant industry spending, but account for only 24% of all restaurant locations. While consumer spending was up overall, some of the largest chains, including McDonald's, Starbucks, Dairy Queen, Burger King and Cracker Barrel, had flat spending growth. But in the current macroeconomic environment, flat could be a good thing. 'Flat is the new up,' said David Portalitan, senior vice president and industry advisor, food and foodservice at Circana. 'You have to work really, really hard in the current environment just to stay even.' Larger chains had greater difficulty boosting growth than smaller chains, which had a larger percentage change in consumer spend year over year. However, the large chains did see some positive shifts following value offerings, he said. Value deals generally drove traffic up more than 5%, but traffic was typically negative in the absence of a meal deal. 'The value wars, so to speak, have certainly moved the needle with consumers,' Portalatin said. 'We have seen consumers increase their perception of value. Their overall satisfaction with value per price paid has been increasing toward the end of 2024 so consumers are recognizing those deals.' Value will continue to be part of the equation this year, reflected by value offerings from McDonald's and other chains. But value is not necessarily about the price point, especially since consumers are already committing to paying more when they order out or dine out, compared to making dinner at home, Portalatin said. 'Consumers are placing an emphasis on other aspects of the value equation: the quality, those craveable indulgences that I cannot make for myself at home, the customer service, the experience, the convenience,' Portalatin said. 'These are the things that are differentiators in the restaurant landscape.' Despite McDonald's recent traffic struggles, the chain has an extremely high annual buyer penetration at 86%, meaning a majority of consumers visit McDonald's at least once a year. Comparatively, the second-highest penetration rate is 55% for Taco Bell. 'McDonald's is such a large and ubiquitous chain and they're conveniently located — you can't go anywhere in this country that a McDonald's is not relatively convenient for you,' Portalatin said. 'That's a big part of the quick service restaurant format, the convenience of access and speed of service, and that just makes them relevant to most consumers at some point, on some occasion.' Even with relatively stagnant restaurant traffic, Circana did see movement among chains. Dutch Bros joined the top 50 list for the first time, and Raising Cane's and Wingstop rising up in the ranks thanks to 31% and 41% increases in consumer spending, respectively. Dutch Bros increased consumer spending by 26%. 'What this report reveals is that there are restaurant operators out there who are not only alive and well, but who are thriving and growing and moving up the list and ranking,' Portalatin said. Recommended Reading Why quality may trump price in 2025's restaurant value battle
Associated Press
26-03-2025
- Business
- Associated Press
Circana Announces Top 50 U.S. Restaurants for 2025
Circana LLC, the leading advisor on the complexity of consumer behavior, today released its 2025 Definitive U.S. Restaurant Ranking Report, offering an in-depth look at the brands shaping the future of the restaurant industry as well as insights on consumer spending trends, key growth drivers, and category performance. In 2024, consumer spending increased by 2%, marking the fourth consecutive year of growth. Remarkably, consumers collectively spent $1 million at restaurants every minute in 2024, with nearly every person in the country dining at one of the top 50 restaurants during the year. The prevailing theme of 2024 was value, driven by persistently high inflation. Many chains began offering meal deals midway through the year, and this value competition is expected to continue into 2025. Notably, 20 of the top 50 restaurants provided a value meal deal in 2024, achieving varying degrees of success. 'As the industry moves forward, value will remain a crucial strategy, although the most effective approaches will extend beyond mere pricing,' said David Portalatin, senior vice president and food industry advisor for Circana. 'For instance, nostalgia has emerged as a compelling tactic that consistently drives traffic gains for restaurants and will be a trend that we continue to watch.' To qualify for the Top 50, a restaurant must achieve annual consumer spending exceeding $1.35 billion. Collectively, the top 50 restaurants account for 61% of the entire restaurant industry's spending, despite representing only 24% of all restaurant locations. Among the top 50, 34 are quick-service restaurants (QSRs), 11 are casual dining establishments, and five are midscale chains. The QSR hamburger category is the most prominent, featuring 10 chains. However, it was the QSR chicken chains that demonstrated the strongest performance in 2024. In terms of growth, 28 of the top 50 restaurants experienced dollar sales growth in 2024, while 31 saw an increase in locations. The top 10 restaurants are all QSRs, with Olive Garden recognized as the largest casual dining chain and IHOP leading the midscale category. The top three restaurants—McDonald's, Starbucks and Chick-fil-A—stand out significantly, collectively generating over $100 billion, which accounts for 32% of the top 50's total dollar sales. Learn more about the 2025 Definitive U.S. Restaurant Ranking Report. Methodology The Definitive Restaurant Ranking leverages multiple data products and services from Circana's unmatched research product portfolio combined with experienced analyst estimates. Sales estimates represent each chain's total U.S. system for the year ending December 2023. They are anchored on CREST®, Circana's flagship, syndicated study of consumer purchases of restaurant-prepared meals, snacks and beverages. Unit counts are sourced from the Fall 2023 release of Circana's ReCount® service, a census of chains and independent restaurant locations that has been regularly updated since 1988. Today, ReCount provides unit counts and trends for over 1.2 million foodservice operators. Annual buyer penetration and average annual purchase frequency for the year ending December 2023 are sourced from Checkout, Circana's gold standard longitudinal consumer panel tracking behavior of the same consumers over time. These primary sources and other proprietary Circana data, public reporting, and Circana analysis generate this new industry standard restaurant ranking. About Circana Circana is the leading advisor on the complexity of consumer behavior. Through unparalleled technology, advanced analytics, cross-industry data, and deep expertise, we provide clarity that helps almost 7,000 of the world's leading brands and retailers take action and unlock business growth. We understand more about the complete consumer, the complete store, and the complete wallet so our clients can go beyond the data to apply insights, ignite innovation, meet consumer demand, and outpace the competition. Learn more at
