Through the Ages

Customers of all ages contribute to the vitality and success of the foodservice industry. Understanding the main demographic groups helps maximize present business and build for the future.

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Through the Ages

DEMOGRAPHIC DATA HELPS BUILD BUSINESS

Analyzing the minutiae of demographic trends may seem like an area better left to statisticians, data scientists, and marketers than to foodservice operators. However, within the broad brushstrokes of the ‘how many,’ ‘who are they,’ and ‘what do they want’ details of the different age-group cohorts are valuable insights that can help guide business decisions. As a science, demography is based on the assumption that those born within specified time frames and affected similarly by the social, cultural, political, and economic forces will share many of the same viewpoints and behaviors, including as foodservice consumers. From older members of the Silent Generation to game-changing Baby Boomers, the emerging powerhouse of Gen Zs, and the newly added Alphas, the behaviors and desires of six diverse demographic clusters are worth understanding.

SILENT GENERATION
Born: 1928–1945
How many: 23 million

Keep in mind: They’re traditional, thrift-minded, patriotic, and loyal.

Business insights: This group appears not to have reverted to pre-pandemic restaurant use, choosing instead to stay safe at home. Special discounts and deals paired with the assurance of safety may help bring them back.

BABY BOOMERS
Born: 1946–1964
How many: 71.6 million

Keep in mind: At present, they hold 51% of the nation’s wealth, according to the Federal Reserve. That means their wallets allow them to eat out often—that is, if they choose to. All indications are that they still enjoy dining out.

Business insights: Living longer than any generation before them, they like to eat healthfully and will actively seek foods that are said to promote wellness. Despite being well connected to technology, Boomers aren’t strongly inclined to do online research when deciding where to eat.

GENERATION X
Born: 1965–1980
How many: 65.2 million

Keep in mind: Although they are at the peak of earning power and hold 29% of the nation’s wealth, they also have the highest average debt of any generation, according to Investopedia.

Business insights: Gen Xers describe themselves as very brand loyal and turn those that fit their lifestyle into “habits.” They’re also intent on experiencing life in the present rather than deferring these pleasures for later years.

MILLENNIALS AKA GEN Y
Born: 1981–1996
How many: 72.1 million

Keep in mind: The largest demographic group, Millennials flex big economic muscles. It’s estimated that by 2030, they will have inherited more than $68 trillion from their parents, setting them up to be the wealthiest generation ever.

Business insights: With the oldest in the group around the 40-year-old mark, they’re heavily into raising kids, making the convenience of drive-thru lanes and delivered meals a huge draw.

With firmly held and uncompromising values, Millennials look for foodservice operations to echo at least some of their most important beliefs and ethos.

GENERATION Z
Born: 1997–2012
How many: 65 million

Keep in mind: The oldest Zs are seen as tastemakers, a position held by each demographic when it hits the mid-20s age range. The mantle will fall to Alphas but for now, Zs are widely admired and emulated. And according to McKinsey & Co., they’re big on nostalgia. Time to menu bagel bites?

Business insights: Three squares a day, no; snacking yes. Note, though, that many Zs describe hamburgers as snacks, says Datassential. In restaurants as well as at colleges and universities, they like to turn eating into social experiences with peers. They’re among the most food adventuresome, with open-minded interest in global flavors.

GENERATION ALPHA; ALPHAS
Born: 2013–2025
How many: To be determined

Keep in mind: Age 2 is when many begin interacting with tablets, ensuring that they will be thoroughly at ease with all aspects of technology and the earliest to enter the metaverse. They will freely mix the known world with augmented reality and are on a first-name basis with Siri and Alexa.

Business insights: Although Alphas are too young to exert much sway, a few traits will be evident as they start making dining decisions. Deeply steeped in all aspects of technology including AI, they will expect seamless integration of all purchasing. Social media and online videos will strongly influence buying decisions. It is also expected that this generation will evolve and change throughout their lives, making future behaviors hard to predict.

THE GEN Z RESTAURANT GAP

A recent report by the market research company NPD Group found that Gen Zs are lagging in restaurant use, this dynamic gaining strength over the last several years. According to its data, Zs’ restaurant use is about 20% less than that of their Gen X counterparts when they were that age in the early 2000s. For today’s Zs, discretionary income is more likely to be spent on tech gadgets, streaming services, clothing, shoes, and beauty products—these spending habits locked into place during lockdown when going out to eat wasn’t an option.

Not having hit their peak earning stride, half of respondents said that rising menu prices have had a negative impact on their foodservice industry spending. To goose up visits by Gen Z, NPD emphasizes the importance of understanding their food tastes as well as the specific attributes that appeal to them. They’re diverse, socially conscious, and respond strongly, one way or another, to the stated values of the companies at which they spend money. Fairly unresponsive to traditional advertising, reaching them via social platforms is also crucial. There is also evidence that they like to support small, independent businesses.

AGE APPROPRIATE

While many differences distinguish the demographic groups, there’s much that unites them, too. When it comes to foodservice, here’s a checklist of what appeals to pretty much everyone.

Quality ingredients well prepared
Unique and interesting menu items
A strong focus on responsiveness, cordiality, and customer service
Conveniences that remove barriers and create a sense of ease

Pleasant, comfortable, and clean environments
Personalized experiences that make diners feel like individuals instead of part of a pack

POWER TO THE PEOPLE

The buying power of four racial and ethnic minorities in the United States, specifically Asian Americans, Blacks, Hispanics, and Native Americans, has grown 55% from $11.3 trillion in 1990 to $17.5 trillion in 2020. Combined, their share of the nation’s total buying power jumped from 10.6% in 1990 to 17.2% in 2020. California, Texas, Florida, Georgia, and New York have the highest population density within these groups. These are key findings in the Multicultural Economy Report released last year by the University of Georgia’s Selig Center for Economic Growth.

To avoid leaving money on the table, here are points to consider for courting and winning the business of racial minorities:

Authenticity and honesty are important in reaching all demographics, especially those from racial minorities. Connect with them on their terms, weaving their particular values, lifestyle habits, and consumer experiences into messaging as well as the service experience
Earn their trust and loyalty, understanding that doing so won’t necessarily follow the exact same template as for White diners
Reach out to non-White employees to gain deeper insights into targeted demographics
Make sure that the restaurant staff is diverse and that training for all team members emphasizes equality of service as an absolute non-negotiable
Support causes that are important to these groups and be a visible, positive presence in their communities. Connect with and be respectful of their cultural heritage
Avoid running ads that lack gender and racial diversity. Similarly, don’t present a false reality
Modify and refine menus as required, creating offerings that are better tailored to their needs and preferences

_{^{Sources: Investopedia: Generation X (2022); McKinsey & Co. Gen Zers Are Capitalizing on Nostalgia (2022); Forbes: Sustainable Retail (2020); The NPD Group: Older Gen Zs Are Entering Peak Restaurant Usage Stage (2022); The Takeout, Why Gen Z Stopped Going to Restaurants (2022); UGA, Consumer Buying Power Is More Diverse Than Ever (2021); GBP, People of Color Have More Spending Power Than Ever (2021).}}