Millennial's are Changing the Restaurant Industry

     Most sources agree that the group known as Millennials started becoming adults around the year 2000, setting off a major shift in business as usual for the Restaurant industry. This group of now 18 to 34 year olds has launched and grew social media, gradually filling it with pictures and reviews of Restaurant's food and service. They became more conscious consumers seeking sustainability and more ethical food choices from fast food to fine dining and popularized “eating clean” and made feel good food terms such as “natural,” “whole,” and “organic” mainstream and a must-have for menus.

     Research indicates that the group’s restaurant spending is growing, and insight into their habits may help Restaurants earn a bigger share of that business.  They are changing the landscape of the industry and seeking to exceed the expectations of a very vocal and empowered consumer group.  

Taste Dominates

Whether it’s the segment of Millennials that is focusing more on taste and cost or the segments focusing more heavily on health and nutrition, the flavor of food matters.  This generation has high expectations for taste and isn’t afraid to let restaurants, friends, peers and followers know whether or not those expectations have been met.  Restaurants are now in a position to dominate when embracing fresher, more flavorful ingredients and creatively combining tastes and textures on the menu to maximize flavor profiles of both standard menu items and new choices.  Culinary creativity across segments is a must to deliver.  Whatever your guests are ordering, a nutritious option or an indulgence, a high-end sit down meal or a quick-serve combo, taste should dominate.

Healthy Redefined

One of the most talked-about characteristics of Millennials is their shifting perception of “healthy.”  In previous generations, the term may have equated to low-calorie or low-fat choices that lacked delicious appeal, but this is no longer the case.  Guests are increasingly following a more total diet approach with a focus on what they should be eating vs. what they shouldn’t be eating.  Today, consumers seeking healthier choices are often looking for:

• More Fruits and Vegetables on the menu.  Research indicates that many consumers in this age group are actively trying to eat more of these whole foods and are passing this habit on to their kids.  This trend ties in to other popular movements gaining momentum such as meatless options, ancient grains and healthier kids’ menus.  Many restaurants are now offering more plant-based choices and additional fruit and vegetable side options to meet guest expectations and position their brand as a choice that Millennials can feel good about.
• More Whole Foods.  “Transparency” and “eating clean” are both buzzwords for this group of guests.  Many Millennials now delve deeper into food choices to limit additives and more processed ingredients, increase organic choices and even avoid allergens in their diets.  Restaurants are rising to the challenge by offering an assortment of menu choices made with whole foods such as lean proteins, fruits, vegetables and whole grains, working with vendors to source less processed products and provide ingredient lists, allergens and nutrition information for guests.  Some brands are even going so far as to work with nutrition experts to provide the best choices for guests.  This shift gives guests the opportunity to make the best choices for their needs and lifestyle while Restaurants build trust in their brand.  
• More Sustainable Choices.  Many Millennials seek to eat more consciously than ever before, and this tendency has carried over to Restaurants.  In fact, local and sustainable changes make up many of the top culinary trends identified by the National Restaurant Association.  Tapping into the sustainability trend may start with small steps such as a handful of seasonal offerings and sourcing more local ingredients.  Some Restaurants are making more comprehensive moves to earn a reputation for sustainability with revamped décor, kitchen procedures and extensive menu choices all designed with the more eco-conscious consumer in mind.

     While there are still some traditionalists in the Millennial age group that may not follow the trends, many in the generation have begun to see food as a more powerful choice for health and wellness.  Faced with rising rates of obesity and diabetes that show little sign of slowing, an overload of health messages and information, and faster-paced, more stressful lives, this generation has taken a less clinical view of health.
 

     Restaurants can win with Millennials by offering an assortment of interesting, beautiful, flavorful and more healthful menu choices that guests can connect to personal wellness and a more balanced life.  It’s no longer as simple as calories or fat, good foods and bad foods.  Resonating with this group means offering menu choices that can help empower guests to live their best life.  

     Millennials have without a doubt changed the restaurant industry and how we do business, especially when it comes to health.  Restaurants big and small have an opportunity to connect with this group by using creativity and healthful ingredients to help them power their best lives.  In addition, menu labeling compliance can help restaurants shine through, not only through the taste and presentation of offerings but also through the nutrition information you provide.  Tap into this opportunity to help win Millennials.

How are you tapping into the trends to earn Millennials’ business?

 

Are You Ready for Gen Z?

     Millennials. How can we engage them, how can we influence them, how can we gain their loyalty? ,How can we evolve with them as they age? How can we meet their shifting needs? Still others are starting to ask how to reach Millennials without alienating Boomers.

     These are all great questions, and all worthy of research, but there’s a major question that’s largely gone unasked: What’s next? Or more specifically, who is next.

MEET GENERATION Z

     Gen Z, Gen Next, Gen Tech, Post-Millennials. Regardless of what you call them, and of the larger societal factors that will ultimately determine how we classify this generation, they are next. With some defining the generation as those born as early as 1995, by some accounts they are already here. They share many traits that set Millennials apart from other generations, often to an even greater degree, but there are also important differences. The first true digital generation, Gen Z has never known a world without instant access to information via the Internet and mobile technology. They are highly multicultural—according to the U.S. Census Bureau, nearly half (47%) of all Americans under the age of 20 are non-white. And they are grounded. Coming of age in a post-recession, post- 9-11 era has tempered the optimism seen among many Millennials.

     So why does Gen Z deserve our attention? Buying Power and Influence.  If you think Gen Z isn’t worth your time yet due to a lack of spending power, think again. Many are teens or college students, already with an estimated $250 billion in spending power and primary decision makers for both their retail and foodservice food and beverage purchases. Many college students, teens and, increasingly, even older tweens routinely visit restaurants outside of family-dining occasions.

     While the youngest in the cohort may not earn an income beyond an allowance, they have considerable pull when it comes to their parents’ purchases and dining decisions. Moms tell us that most family-dining decisions are made as a group and that children’s preferences are strongly considered. Technomic’s Teens & Tweens study found that parents also often comply with specific restaurant requests from their children. For example, 80% of parents whose child suggested a restaurant after seeing a television ad agreed to the visit Patronage and Reliance on Foodservice Gen Z uses foodservice heavily, and chances are good they will eventually be heavier users than any other generation.

     Technomic’s recent Generational Consumer Trend Report found that 68% of Gen Z consumers (defined as those aged 13-21) and 73% of older Gen Z consumers aged 18-21 already use foodservice at least

once a week. Their visitation is on par with Boomers (67%) and in the same ballpark as Millennials

(77%) and Gen X consumers (74%) — pretty remarkable for a group largely not yet earning a substantial income. Their usage will likely grow—and not just as a result of greater earning power as they age. Gen Z is poised to be especially reliant on foodservice because it’s deeply ingrained in their lifestyle. It fits their needs for a wide range occasions: a place to socialize, a place to work or study, and an easy source for the fast, convenient meals their busy schedules require. They’ve grown up using foodservice more than other generations and will likely continue the trend of increasingly opting for foodservice over cooking family meals at home.

     Expectations and Loyalty Gen Z is a highly demanding consumer group. Just as they were

raised to rely on foodservice, they have also grown up in an environment where foodservice caters to

customers’ needs and embraces technology that streamlines ordering and delivery processes, making

occasions more engaging and interactive, and putting them in greater control of their experience.

Although the general use of foodservice is already part of their lifestyle, Gen Z is still in the trial phase. Compared to other generations, their brand, food and flavor preferences are less established, meaning that their specific habits and loyalty are (largely) still up for grabs.

     WHY NOW?  Perhaps the most compelling reason to ask about Gen Z now is that few others are. The industry was late to jump on the Millennial bandwagon, responding to the shifting behavior of their changing customer base rather than preparing for it. The next big generation will both embody and create the future of foodservice. 

     Those who understand Gen Z before the industry as a whole will be best armed to anticipate and meet their needs, putting them at a significant advantage. Deciding if and when Generation Z deserves your attention is the easy part; the hard part will be figuring out how to get THEIR attention.

Source: Technomic Foodservice Monitor