The team at Tacoma, WA based Foodservice Solutions® including
Steven Johnson the Grocerant Guru® here, ready to serve up some tasty insights
on a critical issue facing the restaurant sector and food industry today. As we
witness a seismic shift in dining habits, it’s high time for chain restaurant
CEOs to pivot their focus towards capturing a larger “share of
stomach.” With Gen Z and Millennials veering away from legacy brand
offerings, it’s crucial to understand the forces driving this migration and
explore new avenues of food discovery and distribution.
The Changing Palate of Gen Z and
Millennials
Gone are the days when the allure of a big-name restaurant
was enough to draw in the crowds. Today’s younger generations, particularly Gen
Z and Millennials, are redefining their dining experiences. According to a
study by YPulse, 63% of Gen Z and 59% of Millennials prefer to try new foods
rather than sticking to familiar brands. This trend signifies a growing
appetite for novelty, diversity, and unique culinary experiences.
The Rise of Food Discovery
The pursuit of food discovery has led these generations
away from legacy brands and towards more eclectic and diverse food options.
Social media platforms like Instagram and TikTok play a massive role in this
shift. A report by Morning Consult found that 53% of Gen Zers and 47% of
Millennials have tried a new restaurant or food product based on social media
recommendations. The visual and viral nature of these platforms fuels curiosity
and encourages exploration, making traditional marketing strategies less
effective.
Alternative Avenues of Distribution
As the Grocerant Guru®, I can’t stress enough the
importance of understanding the new distribution channels that are gaining
traction. Ghost kitchens, food trucks, and meal kit delivery services are
revolutionizing the way we access and enjoy food. Euromonitor International projects
that the ghost kitchen market could reach $1 trillion globally by 2030. These
innovative concepts cater to the on-demand, convenience-driven lifestyles of
younger consumers.
The Decline of Legacy Brands
Legacy restaurant brands are feeling the heat. A study by
Piper Sandler revealed that only 16% of Gen Z teens name a traditional
fast-food chain as their favorite restaurant. Instead, they’re flocking to
niche, local, and artisanal food providers that offer authenticity and a
personal touch. This migration away from well-established chains underscores
the need for CEOs to rethink their strategies and innovate.
Capturing a Larger Share of Stomach
So, what can chain restaurant CEOs do to capture a larger
share of stomach? Here are some spicy strategies from your Grocerant Guru®:
1.
Embrace Culinary
Innovation: Experiment with new flavors,
ingredients, and cooking techniques. Fusion cuisine and limited-time offerings
can create buzz and draw in curious diners.
2.
Leverage Social
Media: Engage with younger audiences on
platforms they frequent. User-generated content, influencer partnerships, and
visually appealing posts can drive food discovery.
3.
Expand Distribution
Channels: Invest in ghost kitchens, food
trucks, and meal kits. These flexible and scalable options can reach customers
wherever they are.
4.
Focus on
Sustainability: Gen Z and Millennials prioritize
sustainability. A Nielsen report found that 75% of Millennials are
eco-conscious. Implement eco-friendly practices and communicate them
effectively.
5.
Personalize the
Experience: Use data and technology to tailor
dining experiences. Loyalty programs, personalized recommendations, and mobile
ordering can enhance customer satisfaction.
Think About This
The dining landscape is evolving rapidly, and chain
restaurant CEOs must adapt to stay relevant. By focusing on share of stomach
and embracing the trends of food discovery and alternative distribution, they
can tap into the desires of Gen Z and Millennials. As your Grocerant Guru®, I
encourage these leaders to spice things up and innovate. The future of dining
is diverse, dynamic, and delicious!
Are
you looking for a new partnership to drive sales? Are you ready for some fresh
ideations? Do your food marketing tactics look more like yesterday than
tomorrow? Visit GrocerantGuru.com for more information
or contact: [email protected] Remember success
does leave clues and we just may have the clue you need to propel your
continued success.