Winning Gen Z and Millennials In Economic Uncertainty

Preview

At the Fast Casual Executive Summit 2025, hosts Paul Barron and Cherryh Cansler sat down with two marketing experts to discuss one of the industry’s most pressing challenges: connecting with younger consumers during economic headwinds. Kayla Dillon, Fractional CMO and Brand Advisor at Common Table Services, and Shoshannah DiDomenico, Senior Manager of Marketing at Scooter’s Coffee, shared insights on how brands can maintain momentum when budgets tighten and consumer confidence wavers.

Despite widespread concerns about foot traffic and spending pressure, Scooter’s Coffee has found success by becoming an integral part of customers’ daily routines. DiDomenico emphasized that the brand’s nearly 900 locations across 31 states are thriving because they offer more than just caffeine—they provide consistency and small rewards that people crave during uncertain times. The coffee chain has also adapted to younger consumers’ lifestyles, with afternoon sales matching morning performance as millennials and Gen Z fuel up at different times than traditional coffee drinkers. Their partnership with Red Bull and focus on customization helps bridge the gap between espresso lovers and energy drink enthusiasts.

When economic pressures force budget cuts, Dillon advocates for precision over panic. Her advice? Cut the nice-to-haves like TikTok campaigns and focus investment on retention strategies including SMS, email, and CRM programs. While social media feels essential for reaching younger demographics, Dillon argues that Instagram outperforms TikTok for most brands, and that the real value lies in talking to customers who already know your brand. She encourages founders to reframe the conversation: is marketing an investment or an expense? That distinction becomes critical when defending budget allocations during tough times.

Both experts emphasized the power of community partnerships as a cost-effective marketing strategy. Dillon shared how Erbert & Gerbert’s “Dime for a Day” events—where 20% of sales support local organizations—cost nothing to market but generated a 34% lift in orders and stopped an eight-week declining trend. DiDomenico noted that Scooter’s customers particularly care about animals and local causes, with franchisees partnering with shelters, food banks, and organizations like Make-A-Wish. These partnerships work because the organizations themselves become brand advocates, doing the promotional heavy lifting while creating authentic connections with communities.

The discussion revealed surprising insights about consumer behavior, including how removing “veto votes” can dramatically impact sales. Dillon recounted spending just $1,000 on Google ads targeting vegans at underperforming locations, which resulted in $10,000 week-over-week increases—not from vegan options, but because accommodating dietary restrictions brought in entire groups who might have otherwise chosen competitors. For Scooter’s, their loyalty program drives 60% of transactions in core markets, with successful frontier locations hitting 30-40% right out of the gate by educating customers about the value of their “smiles” rewards system.

Looking ahead, both experts urged brands to focus on authenticity and planning. Gen Z and millennials, having grown up entirely online, can instantly spot inauthenticity—what DiDomenico’s teenagers call “tough ski.” The key is ensuring that marketing promises align with in-store experiences. For Scooter’s, that means capitalizing on strong fall and holiday sales while planning now for the traditionally slow January and February period. DiDomenico’s advice to franchisees: maintain operational excellence during peak season, but start strategizing how to meet customers where they are when the new year brings budget-conscious consumers back to their routines.

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