How Millennials are transforming the restaurant industry
Restaurants are trying everything to attract millennials. The major reason is that they have high disposable income and thus have high spending power.
Millennial’s spending habits are a lot different from the baby boomers generation, as the last generation is passing the torch to the millennials understanding their habits and lifestyle is very important for the restaurant industry.
Millennial’s’ lifestyle has created a clear trend of eating out more often. The generation between 18–33 yrs of age contributes to 65% population of India and they are the ones who are responsible for the drastic change and growth in the restaurant industry.
Here Are The Few Key Ways Of How Millennial’s’ Choices Are Different:
- They eat out more often
Millennials have more people/couples working and thus they have a higher disposable income, thus going out more eating at premium places allows them to flaunt their social status. The work-life balance also encourages them to eat out more and look for more delivery options.
As per the report titled Food for Thought released by real estate company CBRE, “60% of Indian millennials make more than three visits a month for eating out.”
The restaurant industry experienced a positive impact because of this habit as more people are eating out it means more revenue for restaurants. This also poses the challenge in front of every restaurant to understand and get in the minds of their customers to keep up the demands of their fast-paced customers to retain them.
Check out the following stats from a Morgan Stanley report, how often the age groups went out to eat at different kinds of restaurants.
QSR- Quick service restaurants
CDR- Casual dining restaurants
FCR- Fast casual restaurants
2. Millennials interpretation of healthy food
The baby boomers generation was conscious of their calorie intake and the millennials care about the freshness of the food and it should be less processed with minimum artificial ingredients.
Millennials are tech-savvy and the most educated generation this makes them more aware of the global trends. Thus people are becoming more health-conscious and they have the awareness and the knowledge of checking the ingredients of their diet.
This change has provided a very unique opportunity in the restaurant industry where they can cater to these health-conscious customers with a healthy- vegan segment in the restaurant.
3. Millennials believe in experimenting
As long as the restaurants are promising to deliver fresh food, millennials are ready for experimenting unlike the baby boomers who would love to go for a tried and tested cuisine. From Mexican to Indonesian, Asian to Italian millennials are ready to try out the food even if they have not heard those names before.
The restaurant industry has provided the opportunity to introduce more cuisines in India and not only just to focus on the North Indian and South Indian cuisine.
According to GlobalData report “younger consumers are the most experimental demographic, with GlobalData’s survey data showing that nearly four out five millennials globally say they enjoy experimenting with foreign products.”
4. Millennials would pay for an amazing experience
According to an eventbrite report “3 in 4 millennials (78%) would choose to spend money on a desirable experience or event over buying something desirable and 55% of millennials say they’re spending more on events than ever before, with no signs of slowing.”
Millennials are often stressed out with work pressure and they would like to step out and have a great time. With a high disposable income they don’t mind paying a high amount if a restaurant is able to provide them with an amazing customer experience.
The impact of this on restaurants differs in different restaurants. Those who can understand the importance of customer experience and are determined to do something about this get a great return on their investment from the customer. Providing a complete experience to the customer from the moment he has stepped in the restaurant is a big task and restaurants can use customer engagement platforms to retain their customers.
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