MARKETING
Targeting Gen Z consumers? It’s not so simple
Alicia Kelso Executive Editor
According to a presentation at the National Restaurant Association Show, Gen Z consumers want authenticity, convenience and ‘a vibe’ more than price value and robots
There’s a reason nearly every brand is trying to figure out Gen Z consumers’ sweet spot right now. The demographic makes up nearly 70 million Americans, or about 20% of the U.S. population, and has amassed $360 billion in disposable income. This perhaps explains why the session “The Gen Z Effect: Redefining Dining Choices and New Experiences for a New Generation” at the National Restaurant Association Show attracted a standing-room-only crowd. The session was presented by Lindsay Lyons, group director of customer strategic insights at The Coca-Cola Company, and Robert Byrne, director of consumer and industry insights at Technomic. Their lede? A simple reminder that the generation is far from homogenous, which is a detail that often gets lost in the chase.
Of course, they’re also digital and Byrne notes this is the demographic where digital curiosity is moving into digital dependency. However, that doesn’t necessarily mean they want their entire world, including restaurants, to be fully digital. In fact, Byrne said expectations versus reality for this age group may be a bit surprising compared to their older peers. Consider that 23% of Gen Zers find food delivered via robot to be unappealing, for instance, while 38% find it to be appealing. This is compared to the 22% of millennials who find food delivered via robot to be unappealing, while 45% find it to be appealing. Further, 30% of Gen Zers find food delivered via drone to be unappealing, while 32% find it to be appealing, versus 23% and 48% of millennials, respectively. As for those robot servers? Just 32% of Gen Zers find them to be appealing, versus 47% of millennials. What does this mean? “Be careful with your extension of technology. There may be less receptivity to technology than one might think,” Byrne said. Value consciousness One of the most important attributes sought by Gen Z is value, as 46% of these consumers have a second job according to Deloitte research. Byrne said price consciousness is based on necessity as many of these consumers are living hand-to-mouth. That said, their definition of “value” extends well beyond price and their price sensitivity threshold actually decreases compared to other demographics. Sixty- eight percent of Gen Zers pay close attention to menu prices to find the best value, for instance, versus 71% of millennials who do the same. Sixty-three percent of Gen Zers “always compare prices before deciding what to buy,” versus 65% of millennials.
“They are 13-to-24, which comes with a wide spectrum of wants and needs,” Lyons said.
For added context, the younger consumers in this demographic tend to be more trendy and less eco conscious. Ages 15-to-18 are an “inflection point,” where these consumers start to drive and make money. At 18, when many go to college or start working full-time, they become more influenced by social issues, they’re more convenience seeking and they’re more likely to cook. Essentially, the older cohort of Gen Z prioritizes convenience, while the younger cohort is looking for social, fun experiences and “a vibe.” That said, they’re also extremely health conscious, but they define that focus much differently than their predecessors. “Healthy to them is comprehensive – it means things like balance, hygiene, diet, exercise, sleep, therapy. Doing things they want to do. It also means immunity, focus, natural, hydration, all of that together,” Lyons said.
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