Millennials move over. Generation Z outnumbers you by around a million, making the group the largest cohort of American consumers — a valuable demographic for brands to capture early.
Unfortunately for brands targeting the group, spending is down 2.4 percent compared to this time last year, as parents are contributing 63 percent of teen spend this year, down from an average 68 percent. Those figures come from a bi-annual survey conducted by research firm Piper Jaffray.
According to the survey, 5,500 teens with an average age of 16 from across the country shared information on their preferences and spending related to fashion, food, media and more.
FOOD > FASHION
Teens are spending slightly more on food outside the home than a year ago, with almost a quarter of spending now going to grub — which trumped the amount spent on clothing by 5 percentage points.
But Gen Z isn't crazy about full-service restaurants. In fact, teens prefer
Chick-fil-A took the top spot as the most preferred restaurant, while Starbucks fell to second. The coffee chain has been number one 12 times out of the last 14 surveys. (Chipotle snagged the lead those two other times, and now ranks third.)
Piper Jaffray analyst Nicole Miller Regan noted the McDonald's brand "remains generally strong" but cautions teens' brand preference for the Golden Arches' "remains below peak levels seen in prior survey periods, and also saw strong moves from Five Guys and Red Robin."
WHAT'S HOT AND WHAT'S NOT