Battle of the Brands: Gen Z Top Drinks, Snacks, Fast-Food Faves

The semi-annual "Taking Stock With Teens" results are in. Conducted by Piper Sandler in partnership with DECA, this survey of 13,515 U.S. teens across 47 states offers an eye-opening glimpse into how Gen Z spends its money.

Teens' reported spending increased to $2,361 – up 6% year over year and 4% when compared to spring of 2024.

The survey also identifies the top brands that have been capturing (and holding) this demographic's attention, as well as several intriguing shifts that have been happening across multiple sectors, including food and beverage.

Fast Food

Chick-fil-A continues its reign as the most popular fast-food chain among Gen Z, securing the top spot for yet another consecutive year.

McDonald's and Chipotle tied for second place, indicating that teens still favor convenient, affordable meals from familiar brands.

Energy Drinks

Energy drinks have solidified their place as the beverage of choice for teens, with 39% of respondents choosing energy drinks over coffee (31%) and soda (30%).

However, not all energy drinks are created equal, in their opinion. The highly caffeinated leaderboard for 2024 is as follows:

 • Monster

   • Red Bull

   • Celsius

   • Alani Nu

This widespread preference for energy drinks over more traditional beverages that appeal to older generations highlights Gen Z's need for quick, accessible energy boosts that can align with their fast-paced, on-the-go lifestyles.

Snacks on the Rise

When it comes to snacking, teens are sticking to some familiar favorites – and interestingly, they all fall on the savory side of the snack sector.

The top three snacks of today's teenagers include:

   • Goldfish

   • Lays

   • Cheez-It

These long-established brands offer easy, portable options that resonate with the Gen-Z demographic.

Plant-Based Products

The survey's findings also reveal that Gen Z's willingness to try plant-based meat options seems to have stabilized after experiencing significant declines in interest since the spring of 2021.

This recent shift suggests that, while there's still plenty of curiosity surrounding plant-based products and the sector appears to be bouncing back, it may not capture the widespread appeal that was once predicted for this cohort nonetheless.

What This Means for Brands

The insights from the Piper Sandler survey make one thing clear: fast-food chains and well-established snack manufacturers will continue to win over Gen Z, as well as their dollars.

F&B brands that are able to cater to the convenience, energy, and familiarity that this young demographic craves will continue to dominate the competitive landscape. Food Institute Focus

2024: The Year of the Convenience Store

C-stores, in many respects, are surging. Convenience store chains largely enjoyed a stellar third quarter in 2024.

Placer.ai reported that overall visits to C-stores were up 58.6% during August compared to a January 2021 baseline. Additionally, visits were up 2.2% in August year-over-year.

Overall year-over-year visits to C-stores have been up every month since February 2024.

C-stores have undergone noteworthy shifts, embracing diverse offerings like fresh food and expanded dining options. These retail locations are increasingly viewed not only as places to fuel up, but also as affordable destinations for quick meals.

"It's kind of an explosion in the convenience world, with prepared foods. And this hasn't been something that's just happened overnight," D.J. White – senior VP of corporate distribution at CORE Foodservice, an Acosta Group agency – told The Food Institute. "Roller grills were kind of the first version of foodservice [at C-stores] and then it has evolved with pizza, and chicken, and now it's evolving beyond that to a much higher degree.

"A protein bento box – you would never have seen that before in a convenience location."

Convenience stores are the only channel to have grown in units per trip last year and number of trips.

"We've seen this over time when periods of inflation impact households," said Doug Middlebrooks, senior VP, channel sales at Advantage Solutions. "More, smaller trips can take the place of larger stock-up trips in other channels, as people manage their household cash flow."

This is likely a reflection of the trend that's happening in grocery overall: a shift away from the "weekly stock-up" behavior to a more on-demand approach, with more frequent pickups and deliveries, said Jennifer Silverberg, CEO of SmartCommerce.

"This shift is getting consumers more used to smaller pack sizes, single-serve drinks, etcetera," she added.

Regional Powerhouses Broaden Horizons

Regional C-store chains have developed loyal followings. In August, year-over-year visits were up 11.7% for Buc-cee's, 7.6% at Sheetz, and 3.2% at Wawa, according to Placer.ai.

"These brands have become destinations in their own right," Dr. Matt Hasan, CEO at aiRESULTS, told FI. "Buc-cee's, for instance, is not just a store; it offers a unique shopping experience characterized by clean facilities, extensive snack options, and distinctive merchandise. (Plus), by providing EV charging, C-stores are positioning themselves at the intersection of convenience and sustainability."

Successful recent stretches like those enjoyed by Wawa, Buc-cee's, and Sheetz have helped inspire those brands to expand into new areas, broadening their reach.

Between January and August 2024, year-over-year visits to Wawa were mostly elevated, Placer.ai noted. Now, the chain is venturing into heavily populated Southern states like Florida, where its store count has grown significantly over the past few years.

Another chain with countless devotees, Buc-cee's, is expanding beyond its Texas roots. The chain, known for its enormous stores, has already outpaced its strong 2023 performance this year, prompting it to open locations in Arkansas and North Carolina.

Dwell on It

By expanding into new areas, C-stores can tap into local visitation patterns. One metric that highlights local differences in consumer behavior is dwell time – the amount of time a customer spends inside a convenience store per visit.

During the first eight months of 2024, land-locked states like Wyoming, Montana, and North Dakota led the C-store category in dwell time, with average times per visit ranging between 21.2 and 28.2 minutes. The states with the longest dwell times also have some of the highest percentages of truck traffic on highways, Placer.ai found, suggesting that these longer stops are perhaps made by long-haul truckers looking for a hot meal or amenities like showers.

"What C-stores have really nailed is the science of what consumers need. They know the SKUs they need, the options they need, exactly what they need," said Ellis Verdi, president of the DeVito/Verdi ad agency.

"Historically, there was always a high-price perception with C-stores. But today they're much more competitive," Verdi added. "Next to the gum or coffee that you came in for, there's an appetizing roast beef sandwich or something else desirable."

Business Lessons to Be Learned

A key differentiator between C-stores and other businesses is the flexibility these stores offer shoppers, with both foodservice and overall snacking occasions.

"The large variety of beverage options, for example, is something C-stores can leverage over traditional QSRs and other foodservice options," Middlebrooks said.

"I think the convenience world is stealing share from other QSRs," White said, "because they're earning the trust of the consumer. ... The convenience retailer is doing a great job of creating and driving customer loyalty."

Grocers can also learn lessons from C-stores' recent success.

"Grocery stores should think about how to make the quick stops easy and convenient," Silverberg said. "Imagine I'm on the way home from work and realize I need to pick up milk; if I stop at the C-store I know I can be in and out in two minutes. But, at the grocery store, I have to park far away, go to the back of the store, then get in what may be a long line.

"The choice is easy – even if it costs an extra dollar, (the C-store) is worth it."  Food Institute Focus

Customization and Culture: How Starbucks Turns Pricey Coffee into Loyalty

People like their coffee just so, and maybe that's why Starbucks keeps its loyal following despite prices that are higher than those of their competitors.

A recent survey by Technomic found about half of consumers surveyed said Starbucks is the least affordable coffee chain, Restaurant Business reported.

Caribou, Tim Horton's, and Dunkin' were among those ranked much more affordable. Consumers have become highly sensitive to price as a result of inflation, with many now seeing fast food as a luxury, a Lending Tree survey indicated. Meanwhile, a YouGov poll found that diners see casual-dining restaurants as a better value.

But experts told The Food Institute that price isn't everything. "While price plays a significant role in consumers' decisions, Starbucks retains its customer base through its brand experience, quality, and personalized offerings," said Robin Salvador, CEO of Caffeine Brothers.

"Customers return for the convenience of mobile ordering, customization, and the café atmosphere, which fosters loyalty. However, sustainability hinges on maintaining value perception."

Though its prices vary depending on location, a simple 8-ounce cup of drip coffee runs about $3.35. Up the size to 20 ounces, and the cost rises about 50 cents. But get into the specialty drinks like a 20-ounce oat milk latte or an iced apple crisp oat milk shaken espresso, and the cost soars to $6.75. Add a piece of pumpkin bread for $4.25, a baked apple croissant for $3.95, or an egg, pesto, and mozzarella sandwich for $4.95, and breakfast just topped $10. And with customizations like an extra espresso shot or a bit of whipped cream, the price goes even higher. RB noted that such customizations now earn the company $1 billion a year.

"Starbucks has positioned itself as more than just a coffee shop – it's an experience," said Zachary Haycock, VP at the Big Leap marketing firm. "Looking at data from my own comparable clients in the food and beverage industry really demonstrates that loyalty will be sustained despite higher prices.

Starbucks would not have experienced 11% growth YOY otherwise." James Callery, head chef and co-founder of the Cross Keys in Newbury, England, said drinking Starbucks has become "almost a fashion statement, like carrying a designer handbag but with caffeine."

"Even in tough economic times, luxury goods tend to weather the storm better because their loyal customers value the experience as much as the product," Callery said.

"Plus, we can't forget the addictive factor – coffee isn't just a treat; for many, it's a daily necessity," Callery added. "Once you've developed a love affair with that fancy Starbucks coffee, it's hard to quit."

RB noted Starbucks has tried to address the affordability issue with "pairings," its take on value meals.

Haycock said a bigger threat to Starbucks than affordability is that younger customers care more about a company's political and charitable efforts. Starbucks has positioned itself as a daily experience in peoples' lives, so they need to extend that same logic to really craft their political and charitable strategies to match that consumer, he said. Food Institute Focus

Store News:

BurgerFi will continue to operate after it receives $3.5M in funding from TREW Capital Management. The restaurant chain will use the funds to sustain its operations as it navigates Chapter 11 bankruptcy and prepares for a sale, reported Restaurant Business (Sept. 17). Full Story

MOD Pizza's new owner plans to refranchise its company-owned restaurants. Elite Restaurant Group announced that it has hired a specialist to assist with a comprehensive effort to sell locations nationwide to franchise operators, reported Restaurant Business (Sept. 13). Full Story

Todd Graves, the owner and founder of Raising Cane's, joined Season 16 of ABC's Shark Tank premiering. The new "Guest Shark" has led the fast-growing chicken chain since its launch on the LSU campus 28 years ago, which now boasts over 830 restaurants across 40 states, reported Nation's Restaurant News (Sept. 19). Full Story

Smashburger is revamping its branding and menu to feature eight new items and spin-offs of classics. CEO Denise Nelsen emphasized a renewed focus on quality, innovation, and enhancing the dining experience to enable the Denver-based chain to "own the smash" again, reported Restaurant Business (Sept. 8). Full Story

Olive Garden is making several strategic adjustments in an attempt to win back customers. These strategies come after a decline in same-store sales for the third quarter in a row and a 5% drop in restaurant traffic year over year, reported Restaurant Business (Sept. 19). Full Story

Starbucks pulled the Princi Italian pastry brand from many Roastery and Reserve locations in the U.S. and China. The brand was championed by longtime leader Howard Schultz while he worked at the company, reported Bloomberg (Sept. 26). Full Story

Meanwhile, Starbucks has become a haven for teens to hang out, and cold, sugary beverages are incredibly popular among the demographic. Greenlight, a company that provides debit cards to kids ages 5-18, noted that Starbucks was the fifth most popular destination for its cardholders in 2023, reported Bloomberg (Oct. 15). Full Story

Domino's "emergency pizza" deal powered a surge of orders and brought millions of new members to its loyalty program. The company spent two years fine-tuning the marketing deal to ensure profitability and that customers could not game the system, reported The Wall Street Journal (Sept. 29). Full Story

Store News (Continued):

Subway announced on Oct. 1 that it has signed over 20 master franchise agreements in the past three years, amounting to 10,000 international restaurants in total. This marks a 63% increase in locations, reported Restaurant Business (Oct. 1). Full Story

Chipotle Mexican Grill has launched a new ad campaign called "Got Smoked? Get Smoked!" that awards free Smoked Brisket to 100 losing fantasy football players for the remainder of the season. Entrants must be enrolled in the fast casual chain's rewards program to be eligible. Full Story

Meanwhile, Chipotle's venture capital arm recently announced new investments in the AI supply chain platform Lumachain and the fast-casual restaurant concept Brassica. "Investing in emerging culinary concepts that align with Chipotle's commitment to using real, fresh ingredients and making craveable food daily is consistent with our mission to Cultivate a Better World," said Nate Lawton, Chief Business Development Officer. Full Story

Wendy's is bringing back "buck beverages" for a limited time. Throughout the promotion period, guests may order any size of soft drink for only $1 with no additional purchase required. Full Story

Not all restaurant chains are participating in the value wars, including Potbelly, Red Robin, and Portillo's. These companies are deploying strategic offers to keep business flowing without training consumers to expect permanently lowered prices, reported The Wall Street Journal (Oct. 11). Full Story

Taco Bell is bringing back its popular Double-Decker Taco from the '90s in response to pressure from social media followers. The item is available at locations across the nation for $2 through Oct. 30, reported TODAY (Oct. 10). Full Story

Quiznos recently made a record-setting comeback in Tucson, reopening with a new business model and menu. The sandwich chain plans to open 30 additional locations across Arizona. Full Story

McDonald's iconic McRib sandwich has returned to U.K. menus for a limited time after nearly a decade. While there's no official confirmation about its U.S. return, sources suggest it may return later this year, reported Food & Wine (Oct. 17). Full Story

Executives on the Move:

IHOP president Jay Johns will retire after six years in the role, and Lawrence Kim will take over on Jan. 6, reported Restaurant Business (Sept. 25). Full Story

Arby's named David Graves as its president. The fast-food chain also brought back Jeff Baker to serve as its CMO, reported Nation's Restaurant News (Sept. 30). Full Story

Jack in the Box EVP and CFO Brian Scott recently announced his retirement. Industry veteran Dawn Hooper will now lead the organization as principal financial officer and interim CFO. Full Story

Was August a Turning Point for Restaurants?

Comparable sales dipped 0.4% at the nation's restaurants in August as comparable traffic dipped 3.6%, according to Black Box Intelligence.

" After several challenging months, signs of recovery are beginning to appear. While performance metrics show a mixed picture, they suggest the worst may be behind us," wrote the authors of the report.

They authors noted early results for September indicated a return to growth. "We are three weeks in and the month is showing a return to positive same-store sales growth," the group said. Full Story