Chipotle is now the most popular brand among teenage males.
Piper Jaffray’s most recent survey among teens shows that the burrito chain edged out competitors like Starbucks and Taco Bell.
“So of course we are really happy about that because those young kids become lifelong customers and they bring their kids and their parents and their friends and their parents to the restaurants as well,” Chipotle CEO Steve Ells told investors and analysts.
Chipotle’s status is also a threat to teen apparel retailers like Abercrombie & Fitch, American Eagle, and Aeropostale, Brian Sozzi, chief equities strategist at Belus Capital Advisors, told Business Insider.
“That menu price increase is coming straight out of the registers of teen apparel retailers this back-to-school season,” Sozzi said.
For the first time in the Piper Jaffray survey’s history, teens are spending as much on food as they are on clothing.
At the same time, young people also moving away from expensive brand names and flashy logos. They prefer to spend on clothing they feel is high-quality and comfortable.
Sales at the major teen retailers have been falling for years.
Abercrombie & Fitch is responding to this cultural shift by redesigning stores and offering more logo-free merchandise.
But as teens spend more on food, apparel retailers will have an even harder time getting a piece of their limited incomes.
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