Gen Z are Not Millennials, Not Gen X They are Different

Do you know who spends the most at your brand, who spends the most, who looks for your stores the most?  Is it Gen Z, Millennials, Gen X, Baby Boomers? The more important is the question who will be spending the most at your locations over the next 10 years?  According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® Gen Z will soon be more important to your band than any other demographic.

Today the oldest members of Generation Z are coming of age and poised to become the most racially and ethnically diverse generation yet. That according to Mintel in addition they believe brands must start to recognize concerns particular to this group if they want to successfully connect to them.

Once again in a new report, Mintel breaks down three key findings brands will need to know about successfully marketing to Gen Z consumers. We think you should know this information as well so we are going to share information gleaned from the report.  

So, “Gen Z is the first generation to grow up with smartphones, tablets and platforms like social media and YouTube as the norm. The oldest Gen Z members (born 1996) were 11 when iPhones first launched (2007) and 14 when the iPad was introduced (2010).

Admit it or Not

You Are in a Battle for

Share of Stomach

Generation Z members media habits and usage of digital technology will force businesses to approach them differently than previous generations. They are intolerant of traditional ads, which makes them tune out, but are open to being influenced by people they genuinely trust, including celebrities and micro-influencers (who Gen Z find more authentic and emotionally appealing).

What’s troubling about that for example is Gen Z members once embraced Kanye West, then dropped him faster than any brand could have imagined.  That’s and example of being youthful, problimic if you a brand endorsing West.  

So, Mintel thinks that Gen Z's usage of social media is a behavioral trait that also sets them apart, while simultaneously creating new avenues for marketers to connect with them. The cohort has a tendency to shop with smartphones, so brands and retailers should continue to leverage digital channels where these consumers typically find content to drive discovery, engagement and, ultimately, purchases, according to Mintel. Here lets see some more insights from Mintel:

1.       Gen Z members have experienced several economic and social traumas and are no longer willing to be silent about the cards they've been dealt, Mintel pointed out. They are open about their need for social and environmental change and will hold corporations accountable for their actions.

2.       Gen Z members are more likely than older consumers to pay attention to brands' values/missions and to support those that align with their own. For marketers, that creates the opportunity to connect causes with purchase behaviors. Category players that lead with a cause that aligns with Gen Z's values are better positioned to connect with this audience, thus driving more brand engagement and repeat purchases. 

3.       Gen Z members in the United States are more diverse than any previous generation in terms of race, gender and sexuality. They value individuality, while proudly supporting equity and inclusion, and will rally behind authentic and accurate representations.

4.       More than half of Gen Z consumers in the United States feel they would be better represented in advertising if more people without perfect lives were shown. Therefore, brands looking to increase their relatability among this generation would do well to focus on creating ads that embrace inclusivity and use real people rather than relying on celebrities, influencers or models, according to Mintel.

5.       Gen Z wants attainable representation and will increasingly expect brands to destigmatize flaws and work to undo unrealistic beauty standards.

6.       Members of Gen Z will also be more inclined to notice any instances of discrimination or underrepresentation.

7.       Almost one-third of Gen Z adults say they would feel better represented if they saw more racial diversity and more people who do not follow "traditional" gender stereotypes in advertising. For brands, it will be crucial to respect different choices and think the way Gen Z does on these issues, the firm added.

Mintel concludes that while marketers have mastered the art of understanding millennials, brands will need to diversify their approach to connect with Gen Z. They must understand the generation's nuances, target them with relevant products and craft relatable narratives while maintaining ethical standards. Now for more insights into Gen Z shopping habits from Mintel, click here.

For international corporate presentations, regional chain presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert, and public speaking will leave success clues for all. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869 

Don’t forget that Gen Z and Millennials like the Social Aspects of Dining Out Over Technology

 

There are times when we must look back, before we can look forward according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  At the intersection of being young and once being young are two things that are important today, first our memory, and second documented research. What did you like about going out to dinner? Do you think it is the same today? 

That said although Millennials and Gen Z are digital natives that love technology, younger consumers are not using it to replace human interaction, but instead use it to enhance their social experiences when dining out, according to a study from Culinary Visions Panel's Mindful Dining Initiative two years ago. 

That study after looking at 1,500 U.S. consumers ages 18 and up they were surveyed about their attitudes toward ethics-based dining and how it impacts their food choices and purchasing decisions outside the home can once again prove valuable so I will once again share it.

Sharon Olson, executive director of Culinary Visions Panel stated "With more and more restaurants and foodservice establishments turning to technology to solve labor shortage issues, it is important to understand the role of technology in consumers' dining experiences. Our studies show younger adults, in particular, enjoy the social aspects of dining out," … "Today's younger consumers grew up with technology and their facility with it allows them to use technology to make their lives more convenient,"

The study revealed four main takeaways on consumer attitudes toward technology and human interaction:

PERSONAL TOUCH

Younger consumers like using technology to make the ordering process quick and error-free, but millennials and gen Z consumers are some of the most appreciative demographics when it comes to quality customer service and positive in-person interaction, as 64 percent of those surveyed between the ages of 18 and 34 said they would love to go to a restaurant where the server calls them by their name.

In contrast, 58 percent of those between the ages of 35-54 and 54 percent of those aged 55 and older said the same. The pervasiveness of technology has boosted the need for quality interaction, according to Culinary Visions Panel. As millennials and gen Z are some of the most engaged consumers of the digital world, a personal touch during away-from-home dining experiences goes a long way.

A WAY TO SOCIALIZE 

Consumers consider dining outside the home a great way to catch up with friends. Younger consumers enjoy sharing food and swapping bites and, in general, are more influenced by what their peers order than what their older counterparts order. The 2018 Mindful Dining Study found that half of consumer’s ages 18-34 said their ordering decision is influenced by what others are ordering. Only 37 percent of those between ages 35-54 and 25 percent of those aged 55 and up said the same thing. It may be a classic generational difference, but younger consumers are much more likely to use the group's preferences to shape their dining decisions.

SHARING TO SOCIALIZE

Millennial and Gen Z consumers see dining experiences as social experiences to be celebrated through sharing on social media. Nearly six in 10 (58 percent) of consumers ages 18-34 said they like to take pictures to share on social media when dining with a group, while 44 percent between the ages of 35-54 and 22 percent of those 55 and up said the same. Additionally, 39 percent of those between ages 18-34 said they think about whether a restaurant is a good place for photos when going out to eat, and 38 percent said they have eaten at a restaurant before with the express purpose of sharing a photo on social media. Breaking bread is a universal experience that all humans can relate to and sharing those experiences with friends on social media is a way of furthering them — not replacing them, Culinary Visions Panel said.

QUICK CONVENIENCE 

Younger consumers may be quicker to embrace technology in foodservice because as a generation, they value quickness and convenience. Nearly half (48 percent) of those ages 18-34 prefer to use kiosks or touchscreens to order because it is quicker compared to 32 percent of those ages 35-54 and just 12 percent of those ages 55 and up. Younger consumers' ease in opting for technology when they need quickness and convenience reflects how they use technology as a tool, rather than as a default, to respond to their different dining situations and needs.

With a range of 36 percent across all three demographics, interest in using technology may be the biggest differentiating factor across generations, according to the report. However, it is not because younger consumers aren't interested in human interaction. Technology enables and facilitates younger consumers' lives, but they do not want it to replace face-to-face customer service.

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday that tomorrow?  Visit www.FoodserviceSolutions.us for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success.

Selling Meals for Takeout?

Want to Know How to Grocerant?

Aldi Technology Expands Curbside Savings

Nothing is more relevant today during this ongoing recession than price according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. However, technology adds relevance for both Gen X and Millennials in search of food discovery, and new avenues of distribution.

The of the main undercurrents driving Aldi’s success is price, they say that “poor people must save, rich people like to”.  Combine the current recession with value, and technology that edifies discovery, and you can see how Aldi has become one of the largest branded grocery stores in the U.S.

Embracing new technology Aldi is kicking up its curbside pickup operation into high gear as consumer adoption of curbside pickup is one of the most in demand grocery offerings.

Jason Hart, Chief Executive Officer, Aldi U.S. "Our Curbside Grocery Pickup pilot was quickly embraced by our customers and demand for this service has continued to increase. We're pleased to be bringing this service to customers across 35 states over the next several weeks," said Jason Hart, CEO.

An Aldi Spokesperson is quoted, “consumers can now access the full selection of Aldi exclusive products and exciting Aldi Finds via curbside pickup. Shoppers simply fill their online carts with fresh and affordable products and select a pickup time and location at checkout. Designated parking spots are clearly marked when they arrive at their Aldi and an employee will load groceries into their car.”

Hart continued "We are always looking for ways to make the Aldi shopping experience even more convenient and accessible for everyone,". "Whether shopping in-store, or online for delivery or pickup, we'll continue to be here to safely serve our customers."

Are you looking a customer ahead? How are you garnering new customers? Are you capitulating customers? Have you consider entering the grocerant niche to edify food discovery?

Invite Foodservice Solutions® to complete a Grocerant Program Assessment, Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869

Gen Z Looking Food Forward

While Millennials are starting to buy houses and have children most Gen Z of college age or preparing for what comes after high school. One thing is clear like the generation before from the want to discover the world, and want it be a different world than that of their grandparents, parents, or even Millennials according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Here is why Gen Z has become so important to foodservice they account for 27% of the U.S. population. Like the generation before them Gen Z’s has a desire for seamless digital experiences, purpose, and convenience all fast, where digital differentiation is discovery that they can share.

 Here are some of our ideations to help you reach Gen Z:

·         Esports present a platform that is ‘new’, digital, interactive and indoor and can be viewed from a mobile devise. Consider a tie-in or video wall inside your foodservice store front.

·         Handheld video the ilk of Twitch and other video game streaming services, are a perfect platform for product placement.

·         Driving in-store foodservice frequency will require a high level of digital engagement, along with a interactive platform that can be simultaneously accessed as Gen Z likes to do more than one thing at a time.

·         Food must have a platform of ‘full’ flavor with a story filled with authenticity. Once again Gen Z likes handheld food for immediate consumption but with a twist.  They are looking for items that have a ‘halo’ of better for you.

·         Given their propensity of everything digital food delivery is a platform that must have been designed for Gen Z as there is no migration to food delivery. Fast fresh full-flavored food delivered is simply a form of convenience they will not give up.

Success does leave clues. One clue that time and time again continues to resurface is “the consumer is dynamic not static” Gen Z will be more demanding, less patient, in search of ‘the next big thing for some time to come. 

Regular readers of this blog know that ‘The Consumer is dynamic not static’ is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company 253-759-7869.  

Hungry Ready-2-Eat or Heat-N-Eat Grocerant fresh prepared Food is for You

Cooking from scratch is something you read about in history books more than you see in today’s world according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. While   the US unemployment rate hit a 50 year low last month Americans continue to crave traditional meals but don’t the time to cook them from scratch or the still-set to cook from scratch.

Today, Millennials are starting families and tech-savvy.  However, they lack the motivation to prep food, cook food, or do dishes according to Johnson.  This has become a huge problem for grocery stores as consumer drift away from raw, food to seeking fresh prepared meals and or meal components that are either Ready-2-Eat or Heat-N-Eat components that can be mix and matched into a customized family meal.

So, let’s look at some facts:

1.       63% of all restaurant traffic is now ‘off-premise’

2.       69% of U.S. adults have viewed a restaurant menu online is the past year

3.       50% of U.S Millennials are more likely to have restaurant food delivered than they were two years ago

4.       43% of U.S. adults are more likely to incorporate a restaurant prepared meal component into their home meal than they were two years ago

5.       44% of U.S. adults have placed an online order for restaurant takeout/delivery in the past year

There is no secret here Millennials are living a fast-paced life full of instant gratification, it is understandable why Millennials would prefer to buy Ready-2-Eat and Heat-N-Eat meals and meal components.  It’s not just Millennials, Gen X, and Baby Boomers are also seeking solutions to simplify an increasingly complex world fill with more technology than most can use, understand or want.

While the price of food purchased at restaurants is twice that of food purchased at grocery stores, and have more than double the general inflation rate. A study shows that in 2018, grocerants witnessed over 11 billion dollars in sales. It is key to note that over 40 percent of the U.S. population purchases prepared foods from grocery stores.

Remember Millennials seek convenience over most other aspects of meal planning.   That fact alone will drive continue customer migration from traditional avenues of fresh food distribution too new non-traditional avenues of distribution for meals and meal components.  Does your retail outlet look more like 1990?  Are you doing what you have always done?  How is that working for you?  Are your customer counts growing? If they are not, you might want to call the Grocerant Guru®.

For international corporate presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert and public speaking will leave success clues for all. For more information visit www.GrocerantGuru.com , www.FoodserviceSolutions.us or call 1-253-759-7869

Millennials Mirror Memories

Millennials are growing up and having children of their own.  Without any doubt Millennials have adopted the habits of their parents when it come to deciding ‘What’s for Dinner’. They are ordering grocerant niche Ready-2-Eat and Heat-N-Eat fresh food simply because they liked it when their parents bought it for them according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Let’s look at some facts from Hudson Riehle  Senior Vice President for research at the National Restaurant Association:

1.       69% of US Adults have viewed a restaurant menu on line in the past year

2.       50% of Millennials are more likely to have a restaurant meal delivered today than 2 years ago

3.       44% of US Adults have placed an order for restaurant food to be delivered in the last year

4.       43% of US Adults are more likely to incorporate non-restaurant prepared meals into home meals than two years ago.

The NPD Group reported in a new study that” “Millennials outlets of choice for a family meal are quick service restaurants, which includes fast casual restaurants. Millennials with kids made 7.3 billion visits to quick service restaurants in 2018. Dinner is the meal when they are most likely to turn to foodservice, but lunch and morning meal get their share of visits as well.”

The NPD report continued “Millennial families choose to eat their foodservice meals or snacks varies with 46 percent eaten at home, 30 percent eaten at the restaurant, and the remaining percentage spread out among eating in the car, eating at work, at another location, and other places. When at home, Millennial parents will often blend a restaurant item with items they prepared. These types of blended at home meals are forecast to grow over the next few years”

Grocerant niche Ready-2-Eat and Heat-N-Eat fresh food continues to drive customer adoption in every sector of food retail today according to Johnson.  Is your restaurant, service deli, dollar store, or convenience store looking a customer ahead?

Invite Foodservice Solutions® to complete a Grocerant Program Assessment, Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 www.FoodserviceSolutions.us  of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869

Foodservice Demographics Matter

Looking a customer ahead many times means just looking at today’s consumers path to purchase and follow the according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. At other times it requires taking a look back then you can look forward according to Johnson.

Today we do both last yeat  UNiDAYS, uncovered some interesting information in its Gen Z study: “What Restaurant Need to Know,” highlighting key tips for restaurants to make inroads with Gen Z. Exploring the attitudes and behaviors of Gen Z consumers. They found four key themes restaurants need to pay attention to and our team thinks you should look at as well:

1. Move Past the Broke Student Mentality

According to the report, 78 percent of Gen Z’s spend the majority of their money on food. However, Gen Z has already proven to be more financially savvy than their Millennial counterparts. So, even though they have the money to spend, they want to be careful about how they spend it.

2. Community-Based Incentives Are Key

Nearly 93 percent of Gen Zs say they “are more likely to try a restaurant that offers discounts.” UNiDAYS recommends creating a personalized experience for students in a scalable way. Out of the Gen Z-er’s surveyed, 41 percent said they learn about new menu items in the restaurant, and the remainder rely on social media networks (20 percent) and friends (19 percent). The best way to market these local offers are through community-based platforms that build brand affinities.

3. Embrace Spontaneity

Gen Z’s are spontaneous by nature. Only five percent of them said they plan their meals in advance while 48 percent said they try a new quick-service restaurant chain every month. Restaurants can take advantage of their willingness to try new things by using real-time tactics such as mobile push alerts for promotions of menu items and pricing geared towards Gen Z. Since they often communicate in images, it’s critical to dedicate “resources to leverage images and video snippets of your food across social and in promotions targeted at Gen Z.”

4. What Gen Z is Craving: It’s Not About the Meal Plan

Almost 48 percent of students don’t have a campus meal plan, and UNiDAYS says, “if they’re not coming to you, then they’re checking out your competition - which includes local and independent restaurants.” Students share that almost half of local eateries provide special offers for them and 78 percent are taking advantage.

Success does leave clues www.FoodserviceSolutions.us  is the global leader in grocerant niche business development.  We can help you identify, quantify and qualify additional food retail segment opportunities.  Has your company had a Grocerant ScoreCard completed a Grocerant Program Assessment, or new Grocerant niche product Ideation?  Want one?  Call 253-759-7869 Email: Steve@FoodserviceSolutions.us

Kids Meals, Kids, Big Kids Meals including Millennials, Gen Z Meals

Price, value, service, fast food retailers battle for customer counts according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® the battle for customers become complexity free when Price drives trial, and then the key driver in brand customer adoption. 

Once again Burger King is in the chicken nugget war the favorite fast food menu item according to recent Grocerant ScoreCards with 67.6% or respondents ranking nuggets first or second.  Burger King is now selling 10-piece Chicken Nuggets for just $1.  That is a price point few can pass up. If you want to order lunch for the office a limited edition 100 piece Chicken Nuggets will be available exclusively on Postmates with free delivery using the promo code NUGGS.

Chris Finazzo, President, North America, Burger King Corporation stated "We know how much our guests love our delicious chicken nuggets,”… “They are crispy, they are golden, they are tender, there are 10 of them, and they are now just a buck.” Foodservice Solutions® FIVE P’s of food marketing once again are playing a key role in who shops where and when.

Burger Kings Chicken Nuggets offer empowers customer choice pair perfectly with any delicious signature Burger King restaurant dipping sauce including BBQ, Honey Mustard, Ranch, Zesty, Buffalo and Sweet & Sour. Dip them 10 times, 10 different ways.

The team at Foodservice Solutions® is going to try them for lunch to test the Free delivery applied at checkout when ordering 100 piece Chicken Nuggets and using promo code NUGGS between 10/11 and 10/14. Promotion ends on Sunday, 10/14 at 11:59 PM PST. Offer available at participating locations and subject to product availability. Free delivery limited to 1 redemption per customer. So, how are you garnering new customers?

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.