Two unlikely groups are leading a rebirth of the American restaurant industry.
Gen Z saw a considerable year-on-year spike in restaurant spending in July, according to a study released Monday by Bank of America, leading the strongest restaurant spend growth in three years.
It’s the only generation between millennials, Gen X and baby boomers to boost their spending across all six categories the bank’s study analyzed - pizza, fast food, casual dining, fast casual, bars and a combination of regional and local chains and independent restaurants. In fact, Gen Z’s spending increased at least double other age cohorts.
“By age cohort, Gen Z recorded the fastest restaurant spending growth, up nearly 7 percent YoY in July, almost double the rate of Millennials, the next fastest-growing generation,” the study said.
Gen Z has a particular affinity for bars, spending nearly 11 percent more than it did one year earlier. But it was not alone in its influence over the restaurant industry.
Lower-income households played a key role in positive results for restaurants, too.
After their spending bottomed out in late 2025 and early 2026, it rebounded from around 1 percent jump to just over 4 percent increase.
“Lower earners’ restaurant spending increased 4.1 percent YoY in July, the largest improvement over the past year compared to other income cohorts,” the report said.
The Bank of America report adds another layer to Gen Z’s financial decision-making. While younger consumers’ boosted away-from-home food spending may seem like an expensive choice, it’s a trend that emerged across all generations.
Outside of its restaurant spending habits, Gen Z has shown a knack for saving and making smart financial decisions.
The generation increased its IRA savings 65 percent in the first three months of 2026 compared to the same period one year earlier, according to an August study from financial services firm Fidelity.
Because of their savings savvy, a July study from financial services firm Vanguard found that Gen Z is the most on track for a comfortable retirement.
“Nearly half of Gen Z workers … are projected to maintain their current standard of living in retirement,” Vanguard noted.
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