As more food service companies spring up around cities and inner towns, new research is showing which group of people are going to mean that restaurant owners stayed longer than expected, even in the midst of abundance of food and food wastage in most developed cities and towns across the world. Research by NPD Group, a US food research organization, which tracks on a daily basis U.S. consumers’ use of restaurants and other foodservice outlets showed that Millennial parents, like generations before them are turning to restaurants for what to feed their families with.
The research also showed that Millennials overall constituted the most restaurant visits per capita. It seems from the research that they are continuing with a culture from their youth days, and are relatively finding it difficult to adjust to married life. So, now as parents with very busy lives, they are turning to restaurants for convenience.
The research also shows that the outlets of choice for a family meal are quick service restaurants, not time-wasting ones. Again, the research shows that Millennials with kids made 7.3 billion visits to quick service restaurants in 2018. Their dream time is usually in the evening, when tired and weary with the faces of their hungry kids staring back at them, they turn to foodservice. However, notwithstanding this, lunch and morning meal get their fair share of visits as well.
It Doesn’t Matter Where The Food is Eaten, Though
Millennial families from the research don’t actually care about where the food is eaten. In fact, 46 percent of their foodservice meals are 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. Technomic research released in July shows that this number is even higher, claiming that nearly 40% of millennials eat meals on the run, versus 31% of Gen Z, 26% of Gen X and 19% of Baby Boomers.
The Research Has Been Consistent With Past Records
A similar 2015 report showed that Millennials are the chosen generation for many marketers because of their sheer number and perceived buying power. For U.S. restaurants and foodservice outlets, Millennials as a group currently represent about 14.5 billion visits and $96 billion in spending, which is 23 percent of total restaurant spend, but the group has cut back in both visits and spending, finds the NPD report. According to a recent report from investment bank UBS, millennials are three times as likely to order delivery than their parents. Ninety percent of millennial parents order takeout at least once a week, according to Technomic’s 2017 Millennial Parents Insights report.
War Over Millennials
The 2015 report showed a pattern: Older Millennials, ages 25 to 34, who are likely to have families, have cut back the most on restaurant visits, making 50 fewer visits per person over the past several years, according to the NPD report.
According to McDonald’s CEO Steve Easterbrook to QSR Magazine a focus on off-premise channels like delivery and carryout is one way that restaurants can win the intense fight over millennial consumers.
Younger Millennials Are Falling Back To Their Family Food.
Younger Millennials, those who are 18 to 24 years old, made 33 fewer visits per person. Annual per capita restaurant spend for younger Millennials is $1,240, which is down $146 per person compared to their spending in 2007, and older Millennials’ annual per capita spend is $1,369, down $213 per person.
US Trends Don’t Always Represent Cases Elsewhere
Although, the research represents a good future for foodservice restaurants across the world, it may not represent the case in developing countries, as much of the population are still living below poverty line. Much of those who constitute the Millennials are either unemployed or underemployed.
One thing is certain according to CEO Steve Easterbrook, “…the underlying foundation … is just don’t forget to run the restaurant well. The customers have maybe a 5-minute interaction with you … just make that as comfortable and enjoyable as you can and there’s more chance they’ll come to you than the guy next door.’’
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se of their sheer number and perceived buying power. For U.S. restaurants and foodservice outlets, Millennials as a group currently represent about 14.5 billion visits and $96 billion in spending, which is 23 percent of total restaurant spend, but the group has cut back in both visits and spending, finds the NPD report. According to a recent report from investment bank UBS, millennials are three times as likely to order delivery than their parents. Ninety percent of millennial parents order takeout at least once a week, according to Technomic’s 2017 Millennial Parents Insights report.
Charles Rapulu Udoh
Charles Rapulu Udoh a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.