Millennials vs. Gen Z: Who Spends More on Dining Out?

Millennials and Generation Z are driving the latest food trends, with a significant focus on convenience, quality, and new experiences. But which generation spends more—and where are their dollars going? Are their habits shaped by social media trends, wellness, and sustainability? 

Let’s explore the latest data to understand how millennials and Gen Z are spending their money. We’ll also reveal which generation is spending the most.

Key Takeaways

• When it comes to dining out, millennials are spending more overall, but Gen Z’s dining out more often.
• Both generations are dealing with financial challenges, such as debt and high living costs.
• Technology plays a key role in how these generations get food.
• Gen X, though often overlooked, are actually the highest spenders when it comes to dining out.

Food According to the Younger Generations

Millennials and Gen Z are redefining the dining experience with a mix of convenience, quality, and innovation. While there are similarities in their preferences, different trends drive their food choices.

So, Who Spends More?

When it comes to overall spending on dining out, millennials typically spend more than Gen Z. According to the Bureau of Labor Statistics (BLS), millennials typically allocate more of their disposable income to food away from home, averaging $3,455 per year. This is higher than Gen Z, which spends significantly less on average, at $2,483 annually. However, Gen Z eats out more often than millennials, reflecting their preference for fast-casual, affordable options and frequent use of food delivery apps.

Other Financial Habits of Millennials vs. Gen Z

Both generations face financial challenges that affect how they prioritize spending and saving. Millennials, for example, have faced rising student loan debt and higher home prices, which have led many to delay major life milestones. However, a study found that Gen Z’s are going into more credit card debt than millennials when they were Gen Z’s age. Gen Z’s also opening more credit lines and experiencing more delinquencies. However, both generations are using financial tools and apps.

• Debt Management: Gen Z often uses Buy Now, Pay Later (BNPL) services, while millennials typically carry more traditional debt, including student loans and mortgages.
• Self-Care & Wellness: Gen Z often sees self-care as essential, and some Zoomers see beauty rituals as crucial for mental health. A survey found that, compared to older generations, Gen Z and millennials want to splurge on beauty, personal care, clothing, and jewelry.
• Lifestyle & Experiences: Gen Z often prioritizes experiences, such as travel and social events, often choosing those appealing to social media. Many millennials value experiences but also invest in long-term goals like homeownership.
• Investment Behavior & Retirement Savings: Gen Z is often drawn to digital assets like cryptocurrencies and NFTs, using tools like robo-advisors and Roth individual retirement accounts (IRAs). Millennials typically focus on traditional investments like stocks, bonds, and real estate, and are committed to long-term retirement savings, such as 401(k)s.

A Special Mention for Gen X

Though often overshadowed by millennials and Gen Z, Gen X (born 1965–1980) is actually the biggest spender when it comes to dining out. According to BLS data, Gen X spends an average of $3,872 per year on food away from home, outpacing millennials.

Note

Gen X also spends more than baby boomers, who spend an average of $2,539 on food away from home.

The Bottom Line

Millennials spend more on dining and self-care overall, but Gen Z dines out more frequently, favoring fast-casual options and delivery apps. Both generations are reshaping the restaurant industry, focusing on digital convenience, social media trends, and unique food experiences. 

While millennials prioritize quality, Gen Z’s frequent dining habits and emphasis on convenience will continue influencing food culture. Interestingly, Gen X, with higher earnings, outspends both generations on dining out. As all generations prioritize experiences over possessions, dining out remains a central part of their social and financial lives.