Millennials, the 83.1 million Americans born between 1982 and 2000 who now represent the largest single age group in the U.S. “Prior to the Great Recession, they were the heaviest users of restaurants,” said Bonnie Riggs, a restaurant industry analyst with research firm NPD Group. “They got hit hardest by the recession with high unemployment (and) student debt. From 2008 to 2015, millennials have cut back per person (by) 50 visits.”
Considering the size of the group, she said, “that’s a lot of lost volume.” Riggs continued. So, who lost the most? The list includes OSR’s the ilk of Wendy’s, Burger King, and McDonalds plus Chili’s Grill & Bar, Red Lobster, and TGI Fridays to name but a few.
Millennials are now making their way back to restaurants but not just to QSR’s or traditional outlets. Rich Hicks, chief executive of the Mooyah Burgers, Fries & Shakes chain stated “millennials are a big part of where we are today, and they’re a growing piece,…Millennials make up about 35 percent of his customer base, up from 25 percent a few years ago.
Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food is garnering new customers from every segment including millennials. “Quick service restaurant customers often choose foodservice, from grocery stores, and convenience stores”, according to a new analysis by the NPD Group.
Between, March to June 2015, the number of fast food purchases per customer made at supermarkets and c-stores was over six visits higher than those made at QSRs in an average four-week period. That is customer migration that Foodservice Solutions® Grocerant Guru® has been pointing out since 1991, but’s it has ramped up big time now.
Food industry research icon Bonnie Riggs, an NPD restaurant industry analyst, said in a press release “Consumers use QSRs, convenience and grocery stores interchangeably for fast food, particularly when they find the same quality and variety “The lines between retail foodservice and QSRs are blurring for consumers, and these channels are competing for visits from consumers looking for a quick meal or snack.”
McDonald’s breakfast anytime is the perfect empowerment message for millennials. Success does leave clues. McDonald’s picks the clues up very well. While some franchise operators complained about implementation difficulties the results speak for themselves. Sales are up. Customers win. Don’t let your customers migrate adapt, evolve, and remember the customer id dynamic and you must be as well.
Are you trapped doing what you have always done and doing it the same way? Interested in learning how Foodservice Solutions 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization? Email us at: Steve@FoodserviceSolutions.us or visit: www.FoodserviceSolutions.us for more information