In this economy, even the rich are a “more prudent consumer”, warns the CEO of Sweetgreen. Chipotle and cava also hurt

This reflects a wider discomfort in the rapid casual sector, where the guests focused on the recuisale value, and the macroeconomic opposite winds even pressure on the strongest brands.

Chipotle

• The first store’s sales of the first store fell by 4%, led by a 4.9% drop in transactions Despite the modest means of control that run.
• CEO Scott Boatwright directly linked the decrease to the caution of consumers.

“I think the underlying trend … is really linked to the consumer seated on the sidelines,” he said, citing increased prices, an uncertain economic climate and the challenge of lapping the promotional successes of last year. “Many preserve species due to unknown or potential consequences, downstream, intended or involuntary consequences of the current administration. And you therefore see a decline, a market decline, currently. ”

Economic trends have prompted Chipotle to reduce its annual projections.

Leadership focuses on new marketing and menu innovation initiatives to resume traffic, but remains cautious about the economic environment.

How are you

• Sales of the same T2 restorer increased only 2.1%A steep fall from previous years, with an essentially flat traffic and driven by growth mainly by prices and the menu mixture.
• CFO Tricia Tolivar This volatility of macro and the reluctance of consumers weighed on traffic.

In the interviews concerning their call for profits, business leaders highlighted the “fog and uncertainty” facing customers and have cited confidence and weakened comparisons with a very strong previous year as the main factors behind orientation reductions.

Sweetgreen

• T2 comparable store sales flowed 7.6%; Traffic dropped by 10.1%. Despite the menu prices movements, income has barely increased and losses have widened. The annual prospects have been reduced again, now providing a drop of 4% to 6% in sales of the same stores.
• Cee Jonathan finds said: “I think it is quite obvious that the consumer is not in an ideal place overall” and the bad results reflect “the convergence of several external opposites and internal actions”, including a “more prudent consumption environment”.
• The business leaders also stressed that the demand for lunch from the office erased in urban cores and the desire of consumers of more in -depth value at higher prices.

What motivates this?

Drivers of the slowdown through these channels:

• Economic uncertainty, value of value: Consumers are careful. Prices sensitivity is widespread, especially among high income guests, while economists cite the risk of recession and pricing concerns as discretionary spending of pressure.
• Persistent inflation and high costs: Many customers “feel the pinch” of inflation, resistant to frequent meals and gravitating to offers or races.
• Change of work: The channels that depend strongly on urban offices lunches (notably Sweetgreen) have the fight while hybrid work persists, narrowing the business prevails for these locations.
• Difficult comparisons: The popular launches of last year have created unusually difficult sales references for Chipotle and Cava this year.
• Consumption rates and winds: The new prices and related cost passes have intensified prices pressures, several business managers noting it as a significant macro.

The largest image of consumption

FortunePrevious reports highlight several themes:

• “”Budget purchase era:“Americans still spend, but with larger examinationPrioritize transactions and essential elements above discretionary folies.
• Restaurant channels have slowed down price increases And enhanced value promotions, but many guests with lower and medium income remain “on the sidelines”.
• Cautious optimism is replaced by concern – Prices, cost increase and risk of recession– as 33% of American households are now actively Cup budgets for restaurants and other extras.
• “”Looking for pleasure“Expenses do not fall by the choice, but by necessity, because the increase in debt and employment annoys confidence; Consequently, restaurant channels must rely hard on customer loyalty and value incentives.

Chipotle, Cava and Sweetgreen each navigate in a heavy consumption landscape and obsessed with value where inflation, hybrid work, pricing anxiety and evolution of expenditure priorities dull the appetite for $ 12 to 16. Even high income customers require better value. The managers of the company maintain in class maintain the prudent perspectives, although proactive, – accentuated value, digital commitment and menu innovation – but the winds on the scale of industry and prudence suggest an upcoming jumper route.

For this story, Fortune Used a generative AI to help an initial project. An editor checked the accuracy of the information before the publication.