Fast food has always been about affordability and speed. But today’s younger shoppers — who now make up over half the global population — are expecting more from their favorite QSRs.
They want personalized, frictionless experiences. And they’re not afraid to switch brands if they find better deals, service, or menus elsewhere. Half of US Gen Z consumers prefer to explore new brands, compared with a third of shoppers aged 50 and older.
To find out how, when, and why younger diners are spending their food budgets differently, we analyzed $3 billion in transaction data across 47+ million cardholders specifically for QSR trends.
Here are 4 key characteristics that make this population different — and how that could change how you plan your next campaign.
1. They don’t spend as much in Q4
Our data shows that QSR spending stays fairly steady throughout the year, but winter sees the lowest levels. There’s an uptick during the summer (14.7% up from winter) and an even bigger jump in the fall (23.2% up from winter).
Why the dip in Q4? A few factors could be at play:
- Warmer weather = more on-the-go dining. In the summer, Gen Z and Millennials are more likely to grab food between errands, meet friends on the fly, or pick up quick meals on their way to outdoor activities.
- Back to school drives quick dining decisions. In the fall, families and young professionals return to more structured routines. That means rushing between after school pickups, sports or other club activities, late workdays, and an overall greater need for fast, comforting meals.
- Holiday spending squeezes dining budgets. By the time January rolls around, many consumers have spent a lot on gifts, travel, and other gatherings. Plus, “new year, new me” campaigns tend to focus on healthy eating — and may nudge some diners to meal prep or cook at home.
How to act on this trend
Use the quieter winter and spring months to focus on pay-for-performance brand awareness strategies, like rewards-based marketing. Not only will your ads be cheaper during that time of year, they’ll be more memorable — they’re not competing against all the other ads going out during the holidays. When consumers are tempted to stop for a quick meal during peak season, your restaurant will be top of mind.
In addition to launching brand building campaigns, you might consider adjusting your menu to highlight new and interesting meal items, kids meals, and other small perks to make parents’ lives easier when their children go back to school.
QSR Magazine points out: “For families who are looking for discounts amidst tightening school-year budgets, offering menus that appeal to whole families is critical. Furthermore, finding options that appeal to children but may still be considered healthier by parents allows restaurants to capture more consumer interest.”
2. They eat out during the week
Gen Z and Millennial weekday spending was 3.5 times higher than weekend spend. That might seem surprising — until you consider how these consumers live and work:
- Many work from home, creating flexible lunch habits.
- Students may grab quick meals between classes.
- Busy weekday routines mean more impulse food decisions.
How to act on this trend
If your promotions and loyalty campaigns are geared toward the weekend crowd, you’re likely leaving money on the table. Instead, consider implementing rewards-based offers that:
- Offer a 3-5% cash back offer on weekday purchases.
- Time those offers during the Monday through Wednesday slump
- Use targeted push notifications to surface rewards right when someone’s deciding what to eat.
Fazoli’s brought in 81% new customers with a 4% cash back offer through Kard, driving over $530k in sales, and over 6,000 offer redemptions per week in its first month.
3. They use alternative payment methods
Alternative payment methods, from mobile wallets to BNPL, are becoming significantly popular among the Gen Z and Millennial crowd.
Our data showed that the financial services category grew from 9% in March to 12% in December (+33% growth), suggesting consumers prefer a seamless and frictionless buying experience.
Surveys from Toast and PayPal support this trend we’re seeing. 16% of consumers under 27 want more ways to order when dining in (via kiosk or QR code) and 9% of them want a faster way to pay. And 77% of younger consumers are more likely to trust businesses that offer their preferred payment methods.
How to act on this trend
Offering flexible, modern payment experiences isn’t optional anymore.
Partnering with performance-based rewards platforms that already have a network of banking apps, rewards platforms, and fintech that young consumers use can expand the audience your brand serves (and boost your revenue).
4. They respond to loyalty programs
Traditional ads don’t sway Gen Z and Millennials like they used to. Most x out of ads or just scroll past them completely. The thing that does grab their attention? Rewards.
Nearly 41% of diners said loyalty programs influence where they eat — and big QSR brands, like Chipotle are paying attention.
Last summer, the brand launched a guessing challenge that offered BOGO deals and a chance to win free burritos for a year. It paid off big time.
Chipotle CEO, Brian Niccol, told analysts, “We had a record-breaking National Burrito Day, where our gamified promotion resulted in Chipotle’s best sales and digital sales day ever. It also drove an iflux of new and lapsed customers and was the best enrollment day of the year for our rewards program.”
While loyalty can drive huge gains, price sensitivity can erode it just as quickly. Nearly half (45%) of Millennial and Gen Z diners said extra fees would push them to choose a different restaurant. 48% are opting for pickup instead of delivery to avoid costs.
How to act on this trend
To win with younger diners, QSRs need to combine convenience with value. That means offering loyalty perks through digital channels without layering on fees.
Consider:
- Launching or optimizing your own app to control end-to-end ordering and rewards experience.
- Offering pickup-friendly incentives or in-store exclusives to draw in price-conscious customers.
- Exploring card-linked offers, which tie rewards directly to debit and credit card usage, especially relevant since most Americans tend to spend on their credit and debit cards on eating out (37% of restaurant customers paid for their most recent restaurant purchase with debit cards and 33% paid with credit cards).
Want the full breakdown of Gen Z and Millennial spend?
Download our 2025 Modern Consumer Journey Report for more insight into their behavior.
