Foodservice Strategies for the Next Generational Wave (or Two)

Yes, youth demands and preferences can change. That’s an understatement. However, a high-level look at trends can provide some reliable foundational blocks.

Here are 4 to keep in mind

1. Gen Z Rates Convenience Over Cuisine

Like their Millennial predecessors, Gen Z consumers are a health-minded group to the degree that it influences their preference for higher quality foods, as defined by cleaner labels and more natural ingredients.

But, unlike Millennials, Zoomers are the first generation born into the Internet age. They’re what Z-dedicated research firms like Knit refer to as the first “digitally native” generation.

For Zoomers, on-demand isn’t just important. It’s all they know.

And that’s driving two major foodservice factors, in particular.

First, according to a recent nationwide study by YPulse, another youth-focused research firm, “more than half of Gen Z and Millennial consumers agreed convenience was more important than cuisine.” That’s up from 44% in 2017, back before Gen Z really weighed in. And 7 out of 10 said they prefer meals on the go. (ConvenienceStore News, Aug. 2023.)

Operators who haven’t invested in developing their off-premises menu offering and kitchen functions are missing a forthcoming opportunity that’s, arguably, already here.

Second, Gen Z has no idea what life was like without online ordering and bill pay, touchless transactions, mobile-enabled loyalty programs and the lot. (Fun fact: According to NCSolutions’ own Gen Z report, only 9% have even heard of call waiting!)

Further, per that same NCS report, social media is, by far, Zoomers’ most trusted resource for making purchase decisions.

Going forward, operators must continue to make their customer experience—or engagement, ordering, eating, paying and off-ya-go process—seamless, even when labor is tight.

2. Innovating to Gen Z Should Be More ‘Fluid’

Constant menu innovation remains a smart strategy for appealing to the next generational wave of consumers, as indicated by Knit’s Restaurant & Dining Report which shows 55% of Zoomers like LTOs (limited-time offers).

The most compelling forecast in this respect is in the beverage category and, more specifically, what Forbes refers to as the remarkable ‘NoLo’ demand for no- and low-alcohol cocktails, driven largely by the rise of Gen Z.

By the numbers, non-alcoholic cocktail searches are up 225%, according to Pinterest’s Trend Forecast for 2023. Right alongside that, the NoLo market that hit $11 billion last year is projected to grow by 7% this year, which marks a 2% increase over the growth of the last four years combined. (the Zero Proof’s Non-Alc Forecast 2023.)

It’s not a coincidence that the trendline is making such a dramatic curve at the same time that Gen Z is steadily aging into buying-decision adulthood.

Operators who invest in more inventive and even exotic NoLo cocktail recipes will have a captive audience in the years ahead.

Innovating in a stubborn economy is especially wise.

3. For Gen Z, Sustainability Has to Be More ‘Down-to-Earth’ Tangible

Gen Z is extremely skeptical of big brands’ self-promotion, especially when it comes to messages that get outside of a brand’s actual product.

So, while sustainability does, indeed, matter to younger generations—and they like to know how foodservice operations are moving in that direction—the closer operators can connect their particular sustainability efforts to what’s on the plate, the better.

In other words, for Gen Z, putting forward sustainable sources and operational efforts to reduce carbon footprint is great. However, expanding plant-based menus and vegan options and using root-to-stem and other zero-waste kitchen techniques have more impact.

4. Peek Ahead to the Gen Alpha Food Consumer

Even though the generational wave behind Gen Z is just a ripple on the horizon—born between 2010 and 2024—Gen Alpha is worth a glance for two reasons.

Foremost, within as few as five years, the Alphas will blow past Gen Z and the Baby Boomers to become the second-largest cohort behind Millennials. (Mintel Report: 4 Facts About Gen Z Consumers, July 2023.)

Second, understanding today’s younger adults can provide prophetic insight into the next up-and-comers—namely, what looks like Alpha’s lean toward a balance of healthy and indulgence. After all, it makes perfect sense, given that the majority of Alpha parents are Millennials.

It’s early. But keep in mind that, while Gen Alpha parents say fresh fruits & veggies are their #1 eating rule, somehow their kids also prefer McDonald’s 5x more than any other restaurant. (Morning Consult’s Analyst Report, A Brand’s Guide to Gen Alpha, March 2023.)

Just something to think about, while you master the Gen Z market.