Fast-casual chains like Chipotle and Cava are finally feeling the effects of a slowing consumer market. Diners are becoming more cautious about spending, citing economic uncertainty as the main concern. This trend is also affecting investors, who are trimming their holdings after outperforming the industry last year.
The decline in foot traffic and sales growth is attributed to consumers’ growing anxiety about elevated prices, job prospects, and the future. Companies like Sweetgreen, Wingstop, and Cava have reported disappointing quarterly results, with same-store sales declines ranging from 1.9% to 37%.
Industry executives point to a “fog” of economic uncertainty as the main factor contributing to the downturn. While some chains attribute their weaker-than-expected results to company-specific factors, most agree that economic concerns are weighing on consumers.
However, not all fast-casual chains are experiencing similar struggles. Wingstop remains in the green this year, with gains of 20%. As consumer sentiment improves, industry experts expect some chains to recover in the latter half of the year.
Source: https://www.cnbc.com/2025/08/13/cava-chipotle-sweetgreen-report-slower-sales.html