Generation Z (Gen Z) – anyone from their teens to late twenties - represents a significant and growing segment of the consumer market. Catering professionals who grasp the nuances of this generation’s dining habits can tailor their offerings to attract and retain these valuable customers.
Now, two recent pieces of research offer the catering and hospitality industry some valuable insights into a cohort of the population that spans those still at school, college or university together with newcomers to the workplace and some who have already achieved early career success.
Deliverect’s extensive survey of 3,000 consumers across the UK and the US, and market analysis by Toast epos systems explore this generation’s attitudes towards food and dining.
Catering professionals working across schools, universities, business and industry sites, healthcare, prisons and the military are starting have more and more interactions with this group and must navigate this landscape by understanding Gen Z’s preferences for convenience, sustainability, health, and ‘authentic’ experiences.
It is worth making the point, too, that many of the demands of this latest generation will also appeal to older consumers. Here are some of the key insights from the latest research, starting with their preference for ordering in rather than dining out.
Key insights:
A striking finding reveals that nearly half (42%) of Gen Z respondents prefer ordering meals to eat at home on a Friday night against eating out.
This trend underscores the importance of robust takeaway options and home delivery services. The lingering effects of the Covid-19 pandemic have cemented home-based dining habits, making convenience a critical factor for this generation.
And while 73% of Gen Z consumers identify as foodies, only half (50%) would return to a restaurant or takeaway solely based on the taste of the food. This suggests that while food quality is essential, other factors such as cost, service, and overall experience significantly influence repeat visits.
For catering professionals, this means that creating a holistic dining experience is just as important as serving delicious food.
And despite being digital natives, Gen Z places a higher value on food recommendations from friends and family (93%) compared to social media influencers. Social media remains a vital tool for discovering new dining venues, with 48% of Gen Z using it for this purpose, slightly more than the 44% relying on personal recommendations.
TikTok stands out as the most trusted platform for food recommendations, with 70% of Gen Z considering it valuable, followed by Instagram (65%) and YouTube (41%).
This indicates that while influencers play a role, authentic, user-generated content holds more sway in Gen Z’s decision-making process.
Gen Z is also characterised by its financial prudence, a trait developed it is thought by economic uncertainties during the pandemic. Cost is a primary consideration in their dining choices, cited by 42% as a key reason for returning to a restaurant, and this figure rises to 44% for takeaway options.
For them, cost often trumps other factors such as service quality, location, and cuisine type. Additionally, eating out ranks as a top spending priority for 21% of Gen Z, following essentials like groceries (38%) and car payments (22%).
They place a strong emphasis on health and sustainability. Their food choices are influenced by a holistic view of health, encompassing both physical and mental well-being.
They are more inclined than previous generations to adopt flexitarian diets, incorporating plant-based and vegetarian options into their routines. Sustainability is equally important, with 33% of Gen Z respondents indicating that it impacts their food and beverage purchases.
They prefer locally sourced ingredients, reducing the carbon footprint and supporting local economies.
Convenience is another critical factor, driven by their busy lifestyles - balancing work, studies, and social activities. Quick service models and on-the-go meal options are highly sought-after, aligning with their preference for efficiency and time-saving solutions.
What should caterers be considering?
With some idea now of what Gen Z is looking for, what do caterers need to be thinking about when planning menus, looking at service options, training staff, investing in equipment and software?
The best starting point is to emphasise convenience and speed. To cater to Gen Z’s need for convenience, streamline service processes and optimise online ordering systems. Consider implementing technology-driven solutions such as mobile ordering apps, contactless payments, and efficient delivery logistics to enhance the overall customer experience.
It would also be a good idea to focus on sustainability and ethical practice. Highlighting sustainable practices can differentiate your food offer from competitors. Look to use eco-friendly packaging, minimise food waste, and source ingredients locally.
And then communicate these efforts through marketing channels to attract environmentally conscious Gen Z consumers.
As an example, when a London-based restaurant partnered with local farms to source organic ingredients, it prominently featured this collaboration on its menu and on social media.
It found that by highlighting the commitment to sustainability and supporting the local economy it attracted a loyal Gen Z customer base who valued these ethical practices.
Something that should be part of any caterers strategy these days is to innovate with plant-based and healthy options. Expand your menu to include a diverse range of plant-based and health-focused dishes.
And experiment with plant-based proteins and incorporate superfoods that appeal to health-conscious diners, making sure this is conveyed clearly through the detailed nutritional information you provide to help Gen Z make informed dining choices.
That can be done in a variety of ways, but make sure you leverage social media and influencer collaborations by engaging with Gen Z on their preferred social media platforms.
Create visually appealing content, participate in food trends, and collaborate with micro-influencers who resonate with Gen Z values to authentically promote your offerings. Then encourage customers to share their experiences online to generate organic buzz.
Authenticity is crucial for this generation, who are seeking what they feel are genuine and immersive dining experiences. Ensure that your catering outlet’s ambience, branding, and menu reflect a coherent and authentic story.
You could also offer themed nights, cultural cuisine events, or interactive dining experiences can enhance the appeal to them.
As mentioned earlier, offer customisable and flexible menu options that allow Gen Z diners to personalise their meals. This includes concepts such as ‘build-your-own bowls’, customizable pizzas, and modular dishes that can cater to individual tastes and dietary requirements. This flexibility not only meets their preferences but also enhances customer satisfaction and loyalty.
Embrace technology to improve your catering team’s operational efficiency and customer engagement. This means bringing in advanced point-of-sale systems, integrating AI for personalised recommendations, and utilising data analytics to provide you with insights into your customers’ dining behaviour.
Allied with that maintain an active and responsive online presence to try to foster deeper connections with this undoubtedly tech-savvy generation.
Finally, build trust with Gen Z by being transparent about your sourcing, preparation methods, and business practices. Use clear labelling, share behind-the-scenes content, and engage in honest communication about your commitment to quality and sustainability. Transparency fosters loyalty and encourages repeat patronage.