Chipotle Mexican Grill’s new Adobo Ranch dip<\/p>\n
Source: Chipotle Mexican Grill<\/p>\n
Restaurant brands are hoping hot new menu items will drive visits among younger customers. Hot, in this case, is literal.<\/p>\n
Spicy items like chicken sandwiches, seasoned sides and sauces are cropping up more often on menus at major fast-casual and quick-service chains. The idea is to introduce easy-to-execute and buzzy options that can capture the attentions of Gen Z and Gen Alpha diners, even if it’s only a flash in the pan.<\/p>\n
One of those companies was Chipotle<\/a>, which in June introduced Adobo Ranch<\/a>, its first new dip in five years, as a limited-time offer.<\/p>\n “From an operations perspective, the sauce is a lot easier to do than bringing in another LTO or another protein. And you get a lot of the same benefit,” Chris Brandt, Chipotle’s president and chief brand officer, told CNBC.<\/p>\n The draw toward spice is yet another way restaurants are responding to slower consumer spending while trying to keep costs in check. A KPMG Consumer Pulse survey<\/a> found that U.S. consumers plan to spend 7% less per month at restaurants this summer.<\/p>\n “There’s been a pullback, especially from lower-income consumers,” said Gregory Francfort, lead restaurant analyst at Guggenheim Securities. “Spice is a low-cost, high-return way to re-engage them.”<\/p>\n “Restaurants are really trying to be aggressive with their marketing calendars and releasing new products now,” Francfort said.<\/p>\n From March to June, U.S. restaurant chains collectively launched 76 new spicy menu items, representing roughly 5% of new menu items, according to market research firm Datassential. That includes permanent additions and limited-time offers and is roughly in line with historical menu item additions in the category over the last several years.<\/p>\n Around 95% of restaurants now offer at least one spicy item on their menu, according to Datassential.<\/p>\n Though the concept of spice on menus isn’t new, it appears to be catching fire with Generation Z and Generation Alpha \u2014 those roughly under the age of 30. Their preference for bold, spicy flavors is inspiring more restaurants to turn up the heat.<\/p>\n Up to 50% of Gen Z consumers eat at least one spicy meal a week, according to data from soda brand Sprite, which has been playing up its tangy flavor profile.<\/p>\n “Younger generations (Gen Z, for example) are fueling the spicy trend, craving bolder, more adventurous flavors,” a Wendy’s<\/a> spokesperson said in a statement to CNBC.<\/p>\n “They’re not looking for bland or predictable,” said Cava’s<\/a> chief concept officer and co-founder, Ted Xenohristos. “They want strong flavors.”<\/p>\n In April, Cava launched Hot Harissa Pita Chips<\/a> to meet the rising demand. The chain also offers the Harissa Avocado bowl, hot harissa vinaigrette, and harissa honey chicken.<\/p>\n In May, Taco Bell<\/a> launched the Mike’s Hot Honey Diablo Sauce<\/a>, a collaboration between Mike’s Hot Honey and the taco chain’s signature Diablo sauce. It followed a February launch of the Caliente Cantina Chicken Menu<\/a>, building off the fan-favorite cantina chicken.<\/p>\n In June, Wendy’s released the Takis Fuego Meal,<\/a> a collaboration with the spicy rolled tortilla chip snack, which includes the chain’s signature spicy chicken sandwich and Takis-flavored fries.<\/p>\n There’s one challenge in introducing spicy items: Gen Z and Gen Alpha tend to move on from trends quickly. That makes it harder for restaurants to rely on one popular item for long.<\/p>\n Recent flash points like sweet and spicy<\/a> and Nashville Hot<\/a> are already seeing a drop in interest among Gen Z, according to Datassential. Instead, new flavor profiles with global ties are seeing stronger engagement among younger consumers, the firm found.<\/p>\n Social feeding the fire<\/p>\n Spicy menu items have gained traction primarily through social media. Platforms like TikTok and Instagram<\/a> have become key discovery tools for Gen Z and Gen Alpha.<\/p>\n Restaurants are using these platforms to promote limited-time offers and influencer content, including taste tests and reaction videos. Short-form content can create urgency and encourage trial.<\/p>\n “Spicy food consistently performs well,” Tommy Winkler, a TikTok food influencer<\/a>, told CNBC. “It is essentially the new billboard. It is a good chance that someone will end up ordering it.”<\/p>\n Wendy’s Takis Fuego Meal<\/p>\n Courtesy: Wendy’s<\/p>\n In June, the word “spicy” was mentioned over 40,000 times online, according to Datassential. The data showed spikes in those mentions around the time new spicy items started to trend.<\/p>\n This month, Coca-Cola<\/a>-owned Sprite launched a campaign called “Hurts Real Good”<\/a> to tap into the spicy food movement. The brand is positioning the soda as a pairing for spicy foods and is partnering with McDonald’s<\/a>, Takis and Buldak Fried Noodles. The campaign includes a TikTok filter and other social media activations.<\/p>\n Oana Vlad, global vice president for Sprite, highlighted other eye-catching events like mukbangs \u2014 live-streamed broadcasts of hosts eating large amounts of food \u2014 or spicy noodle challenges as helping to bring spicy food into online culture.<\/p>\n “At Sprite, we always try to be inspired by consumer-first insights and then deliver something of value for a behavior that already exists,” Vlad told CNBC.<\/p>\n As of late April, the lemon-lime beverage ranked as the third most-popular carbonated soft drink by volume share, according to Beverage Digest.<\/p>\n McDonald’s fountain Sprite went viral a few years ago as social media users posted videos calling the taste “sharp” and filming their reactions to trying it.<\/p>\n “A huge portion of Gen Z try their first Sprite at McDonald’s,” Vlad said. “You can see fans describing Sprite at McDonald’s as a flash of lightning or electric.”<\/p>\n The diversity of younger generations is also helping to steer them toward flavors with depth, texture and regional identity.<\/p>\n Chili Crisp, used in traditional Chinese cooking; Nam Phrik, originating in Thailand; and Piri Piri, commonly associated with Portuguese and African cuisines, are increasingly showing up on U.S. menus, according to Datassential.<\/p>\n “As the population gets more diverse and as younger consumers want to experiment more, we see a greater willingness to try new flavor profiles,” Sara Senatore, senior restaurants analyst at Bank of America<\/a>, told CNBC.<\/p>\n