What’s the ‘Gen Z problem’ facing fast food chains?

• Gen Z has a different perception of fast food than previous generations.
• According to a Morning Consult survey, this generation is less likely to consider fast food a “good deal.”
• For chains like McDonald’s, the solution isn’t as simple as a $5 meal plan, analysts said.

Younger consumers don’t necessarily like fast food — and that’s a problem for major chains like McDonald’s.

Gen Z, surveyed by Morning Consult, is less likely than previous generations to consider fast food a “good deal.” The company has been conducting monthly surveys since the start of 2024 and collated the data by generation, including millennials, Gen X, and baby boomers.

Winning over Gen Z is key, Lindsey Roeschke, travel and hospitality industry analyst at Morning Consult, told Business Insider.

While some Gen Z consumers are teenagers and people in their 20s who are simply choosing their preferred brands and eating habits, others are becoming parents, Roeschke said. Parents are often looking for quick and easy meals for their families, making them frequent fast food consumers.

“If[fast food restaurants]don’t reach out and connect with them now, they risk alienating them when they become a more valuable target,” Roeschke said.

Morning Consult’s survey found that more than half of all age groups said fast food is a good deal, but there are differences across age groups. In the most recent survey, conducted in July, Gen Xers who said fast food is a good deal outnumbered those who said it is not a good deal by 48 percentage points. For Gen Zers, the difference was 34 percentage points.

Like baby boomers, Gen Z was less likely to say they were more likely to purchase fast food than millennials and Gen Xers. Morning Consult calls this metric “Net Purchasing Consideration.”

After years of price hikes, many fast-food chains have begun to cut prices this year, introducing new value menu items and limited-time specials amid sluggish sales.

The most famous example is McDonald’s “$5 meal deal,” which was initially planned to be available for a month from late June, but was later extended to include the deal at almost all locations through August. Burger King and Wendy’s have also rolled out great deal deals this year.

However, Morning Consult’s survey also found that limited-time special offers have done little to change consumers’ perceptions of fast food.

There are other ways fast-food chains can keep younger customers coming back, Roeschke said.

Morning Consult’s past research suggests that diversifying the menu with new items (such as Chipotle’s TikTok-inspired quesadillas) could help attract more Gen Z customers, he said.

Loyalty programs that offer special access to frequent store customers can also appeal to Gen Z.

“[Gen Z]really values ​​things like early access to new menu items and inside information,” Roeschke said, adding that many younger consumers “want to be the first to know about something” and “want to be the first to share something with their friends.”

McDonald’s did not respond to Business Insider’s request for comment.