Poor restaurateurs – after years of headlines about the so-called Millennials and getting a handle on what they want, the next generation goes and grows up. The post-Millennial generation, is just now coming into view, and while they still have several monikers, they are currently referred to as Generation Z or the iGeneration. Gen Z are defined as people born from the mid-1990s to the early 2000s (Forbes 2015) and by 2020 they will account for one-third of the U.S. population, making them a larger cohort than the Baby Boomers or Millennials. The oldest among them are about to turn 21 and many are entering the workforce.
According to Bank of America Merrill Lynch, the up-and-coming generation is more ethnically diverse, health-conscious, and conservative in their spending habits – that’s not to say they don’t spend their money. Gen Z commands about $828 billion in spending power, and a survey by Unidays confirmed that much of this groups spending goes toward food.
So, what does the restaurant owner need to know when it comes to appealing to the latest generation?
Healthy Preferences
When it comes to dining out, Generation Z has its own habits and preferences that distinguish it from any other generation – Millennials included. Generation Z values authenticity and new experiences. They are looking for food that fits in with their values and are attracted to restaurants that use organic, sustainable, and locally sourced produce throughout their menu. On top of this, Generation Z’s also prefer restaurants that are transparent with their ingredients, they want to know what exactly they are going to consume – in fact, 67% of Gen Z care about the nutritional content of their food, with 41% of Gen Z say they would pay more for foods they perceive as healthier.
Convenience
Gen Z, a digital native generation, have become accustomed to ordering things instantly, with the push of a button, and aren’t keen on waiting long for the perfect meal. They are a group that consumes and processes content much faster than previous generations – research claims they have an average attention span of eight seconds. With that in mind, it comes as no surprise that this generation prefers fast-casual restaurants – at a 50% greater rate than full-service!
They also exhibit “grazing” behavior – a habit of eating smaller meals and snacks throughout the day rather than full-course dishes. They prefer to build a meal of appetizers or snack foods and will grab food whenever it’s convenient, and to accommodate their schedules.
Digital Engagement
This generation has never known life or a world without the Internet or smartphones. They are the first truly digital generation and have never been to a restaurant without a phone in hand. That means their reliance on technology is much heavier. Splitting checks, previewing the menu on Facebook, and even posting online reviews in real time is the norm. And while it might sound trivial, when it comes to choose where to dining out many Generation Z’s will decide if they want to eat at a restaurant solely based on their social media accounts. Zagat’s National Dining Trends Survey, found that 75% of diners who look at food photos chose a dining destination based on social media.
While Gen Z are somewhat still a sleeping giant and no one can predict the future, early indications of their priorities include clean eating choices, convenience and mobile-first technology. For any restaurants looking to connect with these young consumers, they must understand their values, go to the digital platforms they frequent, and then engage them on their native turf. So, ignore the latest industry buzz about caloric information requirements and mobile ordering at your own peril. Gen Z will ensure these concepts are here to stay.