Thursday, May 29, 2014

Food Marketing Experiencing a Price Value Service Equilibrium Disruption


By By Baby Boomers Hello Millennials
It’s been a long time coming but for the first time since 1947 the most common age in the United States is no longer a Baby Boomer it is now a Millennial.
In a new release from the U.S. Census Bureau it found that “22-year-olds are the most represented age group in America, followed by 23-year-olds and then 21-year-olds. In fourth place comes 53-year-olds — those born at the tail end of the Baby Boom, 1961— who are the most-represented Baby Boomer age cohort. The shift occurred either in 2011 or late 2013, the Census estimates. Baby Boom is officially defined by the Census as those born between 1946 and 1964.”
90 Million Milling Around
With 90 Million plus consumers between the age of 18 and 36 milling around outside U.S. restaurants it is by far and away the most sought after group of customers. These consumers are called Millennials and are in search of food discovery, value, and a social experience.  They are resetting the price, value, service equilibrium for restaurant operators.
How important are Millennials to your restaurant? In” A 2010 report from Oracle, that focused on the banking sector, estimated that Millennials’ purchasing power will reach $2.45 trillion next year and $3.38 trillion—more than that of the Baby Boomer generation—by 2018. Longer-term, Millennials seem like too big a demographic for restaurants to ignore.” The answer is very important. Now back to the formula.
Old Formula vs New Formula
The old formula was: Price + Quality + Service + Portability = Value .  That formula has evolved with Millennials today Foodservice Solutions® Grocerant Guru has reevaluated, calculated and evolved the formula with Millennials and here is the new formula:  Price + Quality + Social + Portability = Value.
Retailers seeking additional incremental value from Millennials must be Constantly Changing Menu items enabling Millennials to Discover Seasonal Relevance, Authentic Sustainability with Creditability.
In a recent study of 2,000 Millennial-aged U.S. consumers titled “Understanding Millennials” conducted by the Hartman Group found:
  1.   55 percent prefer communal tables at restaurants.
  2. 68 percent ask friends before selecting a restaurant.
  3. 87 percent will splurge on a nice meal even when money is tight.
  4. 40 percent will order something different every time they visit a restaurant.
  5. Millennials eat out the most frequently at lunch
  6. They tend to eat four smaller meals a day at non-traditional times.
  7.  30 percent eat foods that are certified organic (as compared to 21 percent of Gen X-ers and 15 percent of Boomers).
  8. They prefer whole foods over processed food.
  9. They will spend more on ethically sourced meats and farm-to-table experiences.
  10.  80 percent want to know more about how their food is grown.
  11. Food companies among Millennials’ top 10 most-trusted brands: Whole Foods, Trader Joe’s, Ben & Jerry’s, In-N-Out Burger.
  12. When shopping in grocery stores, Millennial foodies spend more on premium ingredients and are more likely to opt for small-batch handcrafted beers and artisanal cheeses than the big brand names.
  13. Custom food options, such as the 87,000 possible drink combinations that can be had at a single Starbucks unit, are seen as a need, not a luxury. 
  14. It’s just not about nutrition for Millennials. They view food as entertainment and self-expression. 
  15. Most important when choosing food in general, the top-scoring attribute was “A good value for the money,” at 36 percent. Good value was also the top-scored when respondent were asked what is more important when choosing food from a restaurant. Thirty-nine percent said value mattered most. 

www.FoodserviceSolutions.us  specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy.  Foodservice Solutions of Tacoma WA is the global leader in the Grocerant niche since 1991

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