Generation Z, with a disposable income of around $360 billion, is becoming a powerful block of consumers in the food and beverage industry. However, despite their love for food, they eat out around 10-11% less than millennials did at the same age. This low restaurant consumption is pushing the industry to find brand characteristics that can resonate with this demographic. Social media is becoming an increasingly powerful discovery tool for Gen Z, making it important for restaurants to have a strong digital presence and continuously update their menus to capture sales from viral moments. Gen Z is more attuned to social impact and sustainability in their consumption choices, making it a key factor in marketing. Changes to the meaning of the restaurant experience are also significant, including the pressure for convenience and speed leading to off-premise dining, and the preference for experiential dining opportunities. While Gen Z is often viewed as a tech-focused generation, they are more mistrustful of tech solutions than millennials. The majority of their brand preferences are not vastly different from those of the general population.
***Opportunity: Advertising executives might capitalize on this trend by targeting restaurants that focus on social impact and sustainability, those that have a strong digital presence and are continuously updating their menus, and those that offer experiential dining opportunities. Advertisers could also explore opportunities in the convenience store and gas station markets, where Gen Z is getting their meals.
