Friday, October 18, 2024

Success in Engaging Gen Z—A Lesson for Restaurants and C-Stores

 


Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believe that in a rapidly evolving food and convenience landscape, the ability to tap into new consumer behaviors is essential.

Claim, the viral social app targeting Gen Z, is not just reshaping the digital marketing game, but is teaching valuable lessons for restaurants, C-stores, and grocerants alike. With their $12 million Series A funding led by VMG Technology, Claim is proving that authentic engagement is the future of customer acquisition—and the foodservice industry can benefit by adopting similar models.



Connecting with Gen Z Through Authenticity—Claim’s Strategy Mirrors Grocerant Success

One of the key reasons for Claim’s meteoric rise since its 2023 launch is how it taps into Gen Z’s need for authentic connections with brands. This lesson resonates deeply with grocerants, where customers expect the convenience of quick-service meals with the quality of restaurant dining. For those of us in the grocerant space, Claim’s success story underscores the importance of offering real-world experiences that integrate seamlessly into customers’ daily routines. Let’s look at how both restaurants and C-stores can capitalize on this:

1.       C-store Evolution: Convenience Meets Experience
C-stores like Wawa and Sheetz have revolutionized the idea of grab-and-go dining, blending the speed of a C-store with the quality of fast-casual restaurants. By providing both traditional snacks and fresh, made-to-order meals, they’ve built a loyal base of customers. Just as Claim matches users with new brands, C-stores can curate meal combos or limited-time offerings to draw in adventurous eaters.

2.       Restaurant Collaboration for Gen Z Loyalty
Fast-casual chains like Sweetgreen, Shake Shack, and Panera Bread thrive by combining fresh, high-quality ingredients with speed and convenience. Restaurants can take a page from Claim by using cash-back or loyalty incentives to deepen connections with Gen Z customers. They’ve embraced not just digital ordering but also sustainable, socially conscious choices that resonate with younger generations—key elements Claim leverages to attract its audience.


3.       The Grocerant's Growth Path: Bundling & Authenticity
Grocerants, which blur the line between grocery and restaurant, are in the perfect position to capitalize on this model of “discovery.” Take Hy-Vee’s success in pairing sushi stations with traditional grocery aisles. By offering a unique combination of meal options—some ready to eat, others to cook at home—these stores engage consumers looking for both convenience and variety.

Creating Real-World Connections—Claim’s Social Model Applied to Foodservice

Claim’s approach to driving engagement—offering real-world rewards that lead to shared experiences—can serve as a playbook for the restaurant and C-store sectors. For instance, the way users compare rewards from “The Drop” and invite friends to try new restaurants is a tactic food operators should explore. Here are three examples of how this applies:

1.       Restaurant Referral Programs for Social Engagement
Much like how Claim leverages social connections, restaurants can increase foot traffic by incentivizing referrals. Imagine getting a discount for bringing a friend to try the latest menu item at Starbucks or Chipotle. Offering rewards like these turns dining into a social activity, much like Claim’s model.


2.       C-stores and Campus Partnerships
C-stores located near colleges or universities could benefit from following Claim’s example by partnering with campuses and offering exclusive student deals. The blend of affordable pricing and easy access has been a winning formula for stores like Circle K, which already see heavy traffic from the student demographic.

3.       Grocerants with a Social Twist
Some grocerants, like Mariano’s in Chicago, offer not just groceries but live cooking demonstrations and in-store dining. Imagine turning these events into social gatherings, where customers can invite friends to try a new dish or attend a tasting. This creates an environment where shopping, dining, and social interaction converge, enhancing the experience and driving brand loyalty.

Data and Personalization—The Power of Understanding Your Customer

Claim’s ability to harness transaction histories to match potential superfans with new brands shows the importance of personalization in customer engagement. For restaurants, C-stores, and grocerants, knowing what customers buy can translate into tailored meal options, loyalty rewards, or targeted promotions that drive repeat business.


1.       Data-Driven Menus for Restaurants
Take McDonald’s, for example, which uses data to tailor local menus. By offering products that appeal to regional tastes, they increase relevance and drive sales. This strategy could be enhanced further with more personalized offers, similar to Claim’s use of transaction data.

2.       C-store Loyalty Programs
Brands like 7-Eleven use extensive loyalty programs to gather customer data, and that insight can be refined. By identifying patterns in snack or meal purchases, C-stores can send personalized deals or suggest complementary items, making the shopping experience smoother and more appealing to time-strapped consumers.

3.       Grocerants and Customizable Meals
Grocerants can enhance the customer experience by offering customizable meal kits based on past purchases or preferences. For example, Whole Foods could offer meal bundles tailored to a customer’s dietary preferences or frequent purchases, making it easier to shop while fostering loyalty.


Looking Ahead—Growth with Social Connections

As Claim expands, restaurants and C-stores can take note of its innovative approach to brand discovery. From creating social touchpoints to leveraging data for personalized customer experiences, the lessons are clear: Authentic connections are the key to winning over Gen Z, and that’s something grocerants, restaurants, and C-stores can continue to embrace.

Like Claim, the foodservice industry needs to provide not just products, but experiences that resonate with today's fast-paced, socially connected customers.

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter





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