Saturday, December 10, 2022

Yes, Gen Z and Millennials Want Grocery Store and Restaurant Gift Cards


Eating out or eating in makes little difference for Gen Z and Millennials that are off living on their own according to Steven Johnson Grocerant Guru® at Tacoma, WA, based Foodservice Solutions®.  Inflation is driving the cost of food eaten out or eaten in up, up, up.  This year a large number of consumers are going to request gift cards for necessities this holiday season for meals or meal components.

That’s right, don’t hide grocery gift cards behind the counter this holiday season. Some recipients, especially young adults, are very much hoping Santa brings them one this year, according to new research from fintech firm Givex.

If you run a restaurant, C-store, bodega, or grocery store, consider this, 43% of consumers between the ages of 18 and 34 said they would prefer to receive a gift card for necessities, such as groceries and gas, rather than an indulgence.

This is the first year Givex has conducted the gift card survey, so it’s impossible to make comparisons from prior years. But it’s a clear indication that there’s opportunity there for retailers, according to Givex Chief Commercial Officer Mo Chaar.

Chaar stated, “Gift cards need to be seen,” “Especially down the checkout lanes. That’s where a lot of consumers will buy them, from an impulse perspective.”

Now just over half of U.S. consumers surveyed (51%) said they plan to spend at least $100 on gift cards of all types this year, Givex found. And 87% of consumers said they plan on spending some amount of money on gift cards this year.

This is very important, 66% of those surveyed said inflation would impact their gift-buying plans this season. Regular reader of this blog know that inflation is top of mind, shoppers are out scouting for deals—including ones on gift cards.

Start selling your gift cards, as 57% of consumers polled said they’d be more likely to purchase a gift card this holiday season if it included a special promotion. That might include a discounted card (take 20% off $100), which was a draw for 67% of respondents; or a free gift card with purchase, which was a compelling offer for 64% of those surveyed, Givex found.

“That gives the consumer incentive to purchase or gives them a bonus gift card for themselves to use,” Chaar said.

Gift Cards Can Help Drive

New Customers and Repeat Customers

In a Competitive Retail Food World 

Retail gift cards tied with restaurant ones in terms of what recipients would like to get, with 44% saying those top their list. But open-ended credit card gift cards topped all the wish lists, with 71% of respondents saying that’s what they’d most like to receive.

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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