Rising costs are making life feel tighter for many Americans. Inflation, higher food prices and growing debt burdens have all eaten into budgets, and young adults especially are feeling the squeeze. To stretch their dollars, many in this age group are cutting back on dining out.
A recent report from Ever.Ag, published by the International Dairy Foods Association, shows that when young adults do spend money at restaurants, they are looking for ways to save. They split appetizers, order from kids menus, choose lower cost items, skip premium add-ons or avoid the meal entirely. And major restaurant chains like McDonald’s and Chipotle are seeing the effects.
Customers aged 25 to 35 once made up roughly a quarter of Chipotle’s sales, but traffic from this group has fallen for three straight quarters, including a 0.8% decline in the third quarter, according to Scott Boatwright, CEO of Chipotle.
“We believe that this trend is not unique to Chipotle and is occurring across all restaurants as well as many discretionary categories,” Boatwright says. “We’re losing them to grocery [store] and food at home. They feel the pinch, and we feel the pullback from them as well.”
Is McDonalds too Expensive?
Many consumers are also wondering if McDonald’s has priced itself out of the affordable category. The Times reports that a Big Mac sold for $2.24 in 2000 now averages $6. Adjusted for inflation, it should cost about $4.22, which means today’s price is roughly 40% higher than its inflation adjusted equivalent.
Other menu staples have climbed just as sharply. FinanceBuzz found that the price of a Quarter Pounder with Cheese meal more than doubled between 2014 and 2024. And a 10-piece McNuggets meal rose from $7.19 in 2019 to $9.19 in 2024.
The Times notes McDonald’s is not the only offender. The same FinanceBuzz study found that Popeyes prices have climbed an average of 86% and Taco Bell’s about 81% over the past decade, with Chipotle close behind, up about 75%. Wendy’s briefly held the title of most expensive major fast-food chain in 2022, with the average menu item at $6.63 after a 35% jump in just over a year.
Job Market Pressures
Labor market challenges in this age category are adding to the strain.
A recent PYMNTS Intelligence report shows an increase in joblessness among young adults and notes wage gains for workers ages 25 to 29 are currently among the weakest since 2011. Bloomberg reports recent college graduates are struggling to find entry level work in what executives describe as a low hire labor market.
This financial pressure is showing up in spending patterns. PYMNTS Intelligence notes the share of Gen Z consumers living paycheck to paycheck jumped from 57% in January 2023 to 69% in January 2025, a higher share than the general population. Another PYMNTS analysis found that purchases by 18-to-24-year-olds dropped 13% year over year as student loan repayments resumed and credit card delinquencies increased.
Eating Out No Longer ‘Worth It’
For many young adults, eating out has become a luxury rather than a routine. Rising menu prices, coupled with stagnant wages and a tougher job market, are forcing this group to rethink small everyday purchases. What used to be an easy stop for a quick meal now feels like a splurge, and at-home meals often come out ahead.
These financial pressures are reshaping spending habits in a big way. Younger consumers are not choosing new restaurants; they are choosing to skip eating out altogether, and until their budgets have more breathing room, home-cooked meals are set to rise as the more affordable option.
