A recent report uncovered that Gen Z consumers aren’t that loyal when it comes to restaurant brands. That doesn’t mean they avoid them altogether, of course, and another new report shows which brands they do prefer and why.
The third annual “Gen Z’s Top 25 Most Magnetic Brands” report from research and strategy firm dcdx, finds that McDonald’s, Wingstop, Raising Cane’s, Chipotle, and Starbucks are popular among the demographic. This is notable because Gen Z – consumers who are 12- to 27-years-old – is expected to wield $12 trillion in spending power by 2030, according to Nielsen, likely making it the wealthiest generation ever.
The question now becomes how do restaurant brands tap into that wealth? Let’s take a look at how this handful of brands “magnetizes” the coveted cohort.
McDonald’s
McDonald’s is the only restaurant brand to crack the top 10 of dcdx's roster this year, coming in at 10th with a score of 91.8. Last year, the chain topped the entire list thanks in large part to its brand collaborations, such as the Cactus Plant Flea Market Box, and, especially, the viral TikTok challenge featuring its Grimace Shake.
This year’s marketing calendar hasn’t quite caught that same lightning in a bottle effect, but collaborations with popular brands like Genshin Impact and Crocs, as well as campaigns such as the Grandma McFlurry and Collector’s Meal, have resonated, nonetheless. The chain’s $5 Meal Deal has also helped the company gain some traction in the latter part of the year.
Wingstop
Wingstop came in at No. 11 this year with a GenZ score of 89.5 after being unranked in 2023. Its financial performance has matched this newfound magnetism, with several quarters of double-digit same-store sales growth driven largely by transactions, and a two-year comparable sales increase of 36%.
Wingstop has long touted itself as being in a category of one, but its recent introduction of chicken sandwiches has provided a remarkable tailwind for younger consumers who prefer portable and boneless options. Wingstop is also well positioned for digital natives, with nearly 70% of its sales coming from digital channels and a goal of becoming 100% digital.
Additionally, marketing investments this year focused on live sports, including Wingstop's designation as the Official Partner of the NBA, have created more brand awareness and generated new guests.
Raising Cane’s
Also new to the list this year is Raising Cane’s, which is one of the fastest growing concepts in the industry with plans to reach $10 billion in sales and 1,600 restaurants, a substantial increase from its final 2023 numbers of $3.76 billion and 727 units. The chain’s GenZ score is 89.5.
Like Wingstop, Raising Cane’s is leveraging a wildly popular chicken category and doing so with a simple menu of chicken tenders, coleslaw, fries, and Texas Toast (and sauce, of course). The chain recently started adding flagship locations into its portfolio in places like Times Square in New York City, Broadway in Nashville, and Michigan Avenue in Chicago. It has also partnered with celebrities like Post Malone and Snoop Dogg. Founder/owner Todd Graves recently said he loves working with celebrities because they come with an automatic fan base and help boost brand awareness.
Notably, the debut of both Wingstop and Raising Cane’s in this year’s dcdx’s rankings illustrate a growing battlefield in the chicken category for Gen Z consumers. The demographic is helping to accelerate chicken consumption trends, as well as the sauce options that tend to accompany the protein. Because of this growth trajectory, non-chicken brands like McDonald’s and Taco Bell have begun prioritizing chicken offerings more – McDonald’s recently launched a Chicken Big Mac, for instance, while Taco Bell’s Cantina Chicken menu was introduced earlier this year.
Dcdx adds that chicken-centric brands also tend to be more aligned with social gatherings and casual hangouts, which position them well for communal eating occasions.
Chipotle
Chipotle, meanwhile, was not only one of three restaurant brands on last year’s list, but it was also named a “notable riser” this year, gaining 6 points over 2023, from No. 22 to No. 16 with a score of 86.6. Its “magnetism,” according to the report, has also translated to strong sales and traffic in an otherwise soft environment this year.
Chipotle has captured plenty of attention by doubling down on its gaming investments – including a partnership with Tekken 8 in the spring – as well as collaborating with social media influencers like Shari Dyonne, Dylan McArthur, and Anthony Hernandez, and Olympians during the Summer Olympics in Paris. In September, the chain launched a promotion tied to fantasy football and also brought back its popular Smoked Brisket for the first time in three years.
Starbucks
Starbucks was also one of only three foodservice brands on last year’s list, but this year it didn’t fare as well, generating a 10-point decline versus its 2023 score and dropping from No. 7 to No. 17, with a score of 86.1. To say the coffee giant has had a challenging year is an understatement. In the third quarter, for example, North American same-store sales fell by 6%, while traffic was down by 10%. The chain has been criticized for becoming overcomplicated, overpriced, and too transactional in recent quarters while also navigating a growing unionization effort from its employees. In August, the company hired Chipotle CEO Brian Niccol to try and turn things around.
One of Niccol’s biggest priorities is to fundamentally change its marketing, de-emphasizing its rewards program as the primary digital marketing arm and focusing instead on the brand. This effort will include an overhaul of the menu, pricing, and everyday value, he recently said, and the re-establishment of Starbucks as a coffeehouse where people want to hang out.
What is brand magnetism?
Dcdx measures brand magnetism through organic user-generated content, noting that younger audiences are four times more likely to be influenced by UGC than an influencer post.
“As the landscape of trust evolves for young consumers, they increasingly favor more genuine, organic, and less-biased content,” the report states.
The scores are heavily weighted toward TikTok, as the platform is Gen Z’s No. 1 most used app by weekly average screen time. From there, each brand UGC profile is analyzed through seven themes:
- Revealer, which lets consumers in on exclusive information
- Culture rider, which amplifies fandoms and trends
- Vibe master, which evokes a certain mood or feeling through specific styles or aesthetics
- Experimenter, which captures moments of direct interaction with the product or brand
- Storyteller, which fits into daily life through personal stories and experiences
- Dreamer, which portrays an aspirational, high-end lifestyle or experience
- Value seeker, which emphasizes practicality, quality, price, and convenience
The top 25 and their scores:
- Disney, 98.4
- Roblox, 98.3
- Twitch, 97.6
- NBA, 96.3
- Apple, 96.2
- Netflix, 4.3
- Amazon, 93.4
- Target, 92.7
- Spotify, 91.9
- McDonald’s, 91.8
- Wingstop, 89.5
- Walmart, 89.0
- Sephora, 88.9
- NFL, 87.9
- Raising Cane’s, 87.6
- Chipotle, 86.6
- Starbucks, 86.1
- DoorDash, 84.0
- ChatGPT, 83.6
- Crocs, 82.4
- Red Bull, 82.3
- Nintendo, 81.9
- Coca-Cola, 81.6
- Google, 81.3
- Shein, 81.1
Contact Alicia Kelso at [email protected]
