- Americans are altering how they eat out. They opt to share main courses, or order starters or children's dishes to save money. Younger diners are also discerning about their dining choices, preferring establishments they've discovered through social media.
Mia Jones prefers dining out with friends at places that aren'too crowded but still offer an appealing ambiance.
Jones, a 26-year-old brand strategist, explained her dining preferences: she avoids restaurants that are excessively popular, but conversely, she's also uninterested in places that lack any significant public attention or excitement. Redscout, a consultancy, stated to Fortune. “I make a point of checking reviews and require confirmation from other food enthusiasts before I'll commit my money.”
Like many diners of a younger generation, Jones seeks greater value for money when dining out. A study by Eater revealed that over 77% of Gen Zers discover restaurants via social media, with 72% trusting reviews found on these platforms. And Vox Media launched near the end of March.
Jones stated that they refuse to dine at establishments not featured on TikTok, citing a lack of trust in the palates of older generations. My fellow Gen Zers, I understand that when checking out a restaurant, you're often putting on your "FBI hat."
Beyond social media, other trends are shaping how Gen Z chooses places to eat. With rising inflation and tariffs, numerous diners choose to share dishes or select appetizers and children's entrées to manage their dining expenses.
“To ensure everyone can sample various dishes, we'll share appetizers and main courses,” Jones stated. “Given that it's a special event, our goal is to taste a bit of everything.”
By the end of 2024, the average American spent $166 per month on dining out based on data from the Auguste Escoffier School of Culinary Arts. According to Finance Buzz study, 16 well-known chain eateries have raised their prices by approximately 42% over the period from 2020 to 2025.
For eateries, this has translated to reduced spending by their younger clientele.
The industry is keenly observing this trend, according to Barry McGowan, who leads Brazilian steakhouse chain Fogo de Chão, as she shared with Fortune. Younger generations prioritize thoughtful spending. Additionally, alcohol consumption patterns are shifting. This demographic tends to favor non-alcoholic or low-alcohol drinks. Fogo de Chão, a restaurant with over 70 branches worldwide, was Bain Capital Private Equity purchased it in August 2023 for $1.1 billion.
More members of Generation Z are choosing to abstain from alcohol, not solely for financial reasons, but also to avoid addiction and adopt healthier habits.
Research from the University of Michigan's Institute for Brooke Arterberry indicates that Gen Z is engaging in fewer in-person social interactions, suggesting a potential shift in societal customs. A social researcher specializing in young people's alcohol habits previously shared insights with Fortune's Alicia Adamczyk. Shifts in parental roles could also play a part, alongside the heightened expectations young people face for achievement and the vast amount of available data on the Risks of alcohol consumption, and even financial uncertainty.”
A recent report from the National Restaurant Association in 2024 indicated that over three-quarters of diners are seeking reduced portion sizes at a lower price point. Yet, certain fast-casual and quick-service restaurants have risen to the occasion, with establishments such as Subway introducing a snack-focused menu and Panera Bread focusing on their well-liked offerings. The "You Pick Two" offer, which usually runs under $10, lets you choose a cup of soup along with a half sandwich or salad.
Younger patrons are consuming less alcohol, causing a modest reduction in average bill amounts, according to several restaurant groups. Restaurant365, a restaurant management software company, has a manager of inventory and sales, according to Fortune. Restaurants are increasingly recognizing the trend of adults opting for children's menu items, seeing it as a way to offer a budget-friendly and appropriately sized choice that benefits them Engage and keep clientele in their twenties and thirties.”
A social media personality, Ashley Garrett, has dedicated herself to reviewing children's meals from various eateries, aiming to assist other adults Discover delicious yet affordable dishes. She, aged 33, states she consumes children's meals five days weekly, finding restaurant servings excessive in size and cost.
Garrett is happy with simple chicken tenders or a plain pasta.
How other generations dine out
During this inflationary period, with consumer confidence sharply declining, it's not solely a generational phenomenon to be concerned about menu prices.
In fact, a substantial 86% of customers indicated they've altered their eating habits due to inflation, with roughly a third opting for more budget-friendly choices. 29% of menu items and diners are considering budget limitations, as revealed by the Eater/Vox Media survey. When choosing a new restaurant, over 60% of baby boomers indicated that obtaining a fair or reasonable price was a primary consideration. A recent February publication by & Co. Indicates a reduction in consumer spending intentions for both dining out and grocery purchases.
Hannon noted that he has actually observed a rise in expenditures within a specific sector among baby boomers.
"Notably, the baby boomer generation has actually boosted their alcohol expenditure, frequently viewing meals outside the home as an occasion for indulgence," he commented.
Gen Zers often discover new eateries via social media, while millennials continue to depend on Google and Yelp for user feedback.
Hannon remarked that while Millennials frequently use online platforms, they prioritize reviews and ratings over mere visual appeal.
A version of this story originally published on Fortune.com on April 19, 2025.