These 5 fast-food chains will dominate the restaurant industry

The restaurant industry is increasingly competitive - and tapping into the next generation is crucial for chains' survival.

Failing to capture millennials' interest has led to slumping sales and restaurant closures at sit-down chains such as Applebee's.

However, according to Piper Jaffray's biannual survey of teen preferences, some casual-dining chains may be staging a comeback. Despite millennials' adoration of quick-service chains like McDonald's, Starbucks, and Chipotle, some full-service brands are winning over their hearts - and wallets.

With 22% of upper-income teens' spending dedicated to restaurants, the Gen Z or millennial diner is a valuable customer.

Here are the top five restaurants among teens, according to Piper Jaffray's survey.