The growing spending power of Gen Z, who now comprise 32 percent of the global population, is having a transformative effect on consumer industries of all kinds—and the restaurant industry is no different.
In 2020, Gen Z’s spending power is estimated to be in the range of $29 to $143 billion, surpassing that of the millennial generation.
Is your restaurant catering to the needs of this critical demographic? To help your business prepare for what lies ahead this year, here are three trends that will shape the restaurant industry in 2020.
Customers Will Increasingly Value Unique Dine-In Experiences
Although delivery and takeout are experiencing massive growth, people’s digital lives (particularly those of Gen Z, who have always lived in a digital world) will lead them to value the more social aspect of dining at a brick-and-mortar restaurant even more.
Brands are starting to take note of this interest as well with more and more advertisements focused on stories around IRL connections. Take the 2020 Nissan Altima “Be There” commercial, for example, in which a man unexpectedly shows up at a friend’s house responding to his text message.
With people increasingly craving IRL connections, we predict that restaurants will have more opportunity to serve customers who want to dine in and spend some quality real-life social time with others.
We also expect that restaurants will continue to provide unique, out-of-the-box experiences for their guests, like offering off-menu items for a limited time or dishes with exotic flavors that create more immersive dining.
More Restaurants Will Take Part in the Zero-Waste Movement
In addition to being good for business, as it helps to reduce costs and expenses from overstocking, there is another bonus for restaurants that decide to work towards producing zero waste: appealing to a younger generation of consumers who value and support establishments that take part in eco-friendly practices.
There are also technologies now available that help restaurants better manage their inventory stock, making it easier for restaurants to get involved in this trend.
Seamless Interactions Will Become Necessary
The growing Gen Z customer base will also drive restaurants to make sure that they offer more frictionless experiences.
That means making it easy for customers to order and pay for their meals digitally. Some ways restaurants can implement these seamless experiences areis by using technologies and systems that allow customers to, for example, check-in with their phones or pay for their food using a POS handheld tableside tablet.
As the needs and wants of customers become more precise, restaurants offering creative and frictionless dining experiences will have the edge. Technology will also play a huge role as innovative systems can not only create better customer experiences, but also help restaurants implement more efficient operations that help them save on costs, while showcasing their commitment to sustainability and ability to meet the evolving demands of today’s consumer and culture.
And Iif you’re looking for an easy way to start offering customers the dining experiences they crave, OneDine can help you easily and affordably put the right systems in place. Contact us today to schedule a demo of our all-in-one automated order, payment, and customer experience solution for optimizing your restaurant brand.