2019 - The Year of the Cautious Food and Drink Consumer?
Reading the ever-brilliant MCA Report this morning, I came across some data, from research company RSM, that seems to indicate a choppy start to 2019 for Restaurants, Pubs and Take Away channels.
Is this just a case of New Resolutionitis, uncertainty over Brexit or is it a more systemic change in habits reflective of the current woes on the high street?
RSM surveyed 2000 consumers from the main demographics (excluding Generation Z) and apart from Millennials, all other groups indicate a cut back in spend on Restaurant and Pub visits, alongside a cut back in takeaways and delivery:
Takeaway/Delivery – 27.6% (Delivery remains a solid part of food culture for Millennials with 1.8% of Baby Boomers and 4.7% of Gen X looking to increase spend compared to 17.9% of millennials)
Meals Out – 26.7% (across all generations spend intentions in terms of meals out follows a downward trend 25.8% - 27.5%)
Going to the Pub – 25.3% (Baby Boomers remain supportive of Pub visits with 20.7% intending to spend less compared to 28.4% of Millennials)
So, the numbers seem to indicate an overall cutting back on spend across the sector but were will the money saved be going?
Savings – 20.7%
Holidays – 17.2%
Weekends Away – 12.5%
Only time will tell if these intentions are resolution based or are being driven by Brexit concerns or the high cost of living, but one thing is for certain, Operators will have to work harder than ever to get consumers to part with their hard-earned cash.
Generation Focused Strategy
At ZED, our primary focus is the pulleys and leavers that make Generation Z tick.
However, all generations need a nuance and fashioning of marketing messages designed to trigger their specific habits, behaviours or experiences.
Each cohort has become more demanding and better informed over the last 20 years.
Standing out and having a clear identity, which is relevant and authentic, has become essential to creating a thriving and sustainable brand.
Know your customer base and what’s coming down the track
So, I guess the old “know your customer” adage is more relevant today then ever before. Baby Boomers, what motivates them today to go to a Restaurant, as opposed to eating and drinking at home? Gen X what drives their engagement and loyalty to the Pub Channel? Why are Millennials so hooked on Delivery? What do Gen Z want from food and drinks brands?
Its worth remembering that costumers borrow your brand, product or service for a short space of time and making sure your values and narrative reflect theirs, will determine how frequently they come back.
Getting to know Generation Z
ZED have closely observed Generation Z, tomorrow’s customer, looking to understand their view of the world today and the one they would like to see in the future.
Generation Z are a critical to the future health and prosperity of the food and drink sector (both as employees and as customers), with many at the top end of the range already in work and are active consumers.
More discerning, with less money and an eye for marketing gimmick or lack of authenticity, Generation Z pose some interesting questions of marketing, communications and brand leaders.
Gen Z Insight and Context
The ZED Food and Drink Report 2019 has shone a light on Generation Z and closely explored their attitudes and behaviours towards eating, drinking and going out in the UK.
Over 500 kids were interviewed as part of the report, which gives marketing, communications and brand leaders valuable insight into some important aspects of Generation Z life:
ü Generation Z: Influences, Priorities, Future Trends
ü Generation Z: Eating Out, Going Out, Staying Out
ü Generation Z on Alcohol (a sideways glance)
ü Generation Z: Food on Events, Attractions and Food
ü Taste Influencers: Where, What and How Generation Z like to Eat
ü Street-eating/socializing – The rise and rise of street food
ü Atmosphere/Extras – The Gen Z Essentials!
ü Experience over Possessions: Likes, FOMO, and Photos
ü Social Media, Restaurants and Generation Z – The Real and Digital World
ü Brands Loved by Generation Z (and why)
ü Nandos – A closer look
The report is full of actionable and practical insights that can be used in teams TODAY, for those looking to drive Gen Z engagement and loyalty.
Generation Z, Are you ready?
With 33% of the global population in 2019 made up of Gen Z, it is becoming difficult to ignore the growing impact that this young generation will have on not just the food and drink sector but the entire global economy, over the next 10-15 years.
Are you ready? What does your Gen Z filter look like? Why is important to talk to Gen Z in a way that resonates with them?
We would love to talk Gen Z with you and how we can help create a youth engagement strategy for your brand, product or service.
To talk to ZED or to purchase a copy of the report, please drop us a line at [email protected] or call Michael on 07788 921127.
Or click here to go to our Contact Form.