Continued: Targeting Gen Z consumers?
“Fewer than one-third of Gen Z consumers plan to cut back on restaurant usage because of high menu prices, which is below average. Menu price on its own is fading as part of the overall value equation,” Byrne said. Generally, Gen Z consumers care “significantly less” about menu price comparability, the visual appeal of food, knowledgeable staff, clean bathrooms and being treated like a valued customer than their older counterparts. What do they care about? • Effective advertising • Natural, organic, sustainable, responsibly sourced items • Digital ordering/payment capabilities • Tech-enabled features to improve the overall experience • Kid-friendliness • Loyalty programs/rewards • Additional key takeaways from the presentation YouTube is king YouTube is Gen Z’s most preferred social media channel, so that is a critical place to reach them. To illustrate the criticality of this channel, two out of three Gen Z consumers experience a brand for the first time on YouTube. That said, YouTube tends to feature long-form video and younger Gen Z consumers prefer short-form videos such as those found on TikTok, Instagram and YouTube Shorts, so this preference may be changing. Overall, social media in general is usually the first place Gen Z consumers will interact with a brand, which is important because much of this content is organic and “therefore more trustworthy and less suss,” Byrne said. Nike is also king Their favorite brand is Nike, which is noteworthy because it’s a lifestyle/ luxury brand that consumers do not buy every day. What do Gen Z consumers buy every day? Food and beverage; therefore food and beverage companies would be wise to understand the draw of Nike, according to Lyons, and that is mostly authenticity. Gen Z is hard to impress Despite that $360 billion chest full of disposable income, their social and digital nature and their desire to have a “vibe” and an “experience,” Byrne cautioned, “Gen Z is not here to save your business.”
“Be careful with your extension of technology. There may be less receptivity to technology [among Gen Z] than one might think.”
Indeed, less Gen Z consumers are using restaurants once a week now (73%) versus 2018 (75%).
“They’re hard to impress. Gen Z seems to have not been trained to be a loyalty or frequent customer. There is hesitancy and discernment,” he said. “That’s why you have to be authentic.” “They don’t want to be confused, so be very clear about what you’re doing,” Lyons added. “Meet them where they are, pull them in and make it that comprehensive experience they want.”
Robert Byrne, director of consumer and industry insights Technomic
28
Powered by FlippingBook