Different Generations, Different Worlds The generations that populate today’s America grew up on entirely different planets. Senior citizens’ personalities and desires were formed in an era of scarcity and war. For those born before 1946, caution and frugality are built into their DNA. Baby Boomers, born between 1946 and 1964, came into a world of rapid growth, exuberant consumerism and family focus. Because there have always been so many of them, Boomers are used to being the center of attention. Even now, they continue to demand notice, seek novel experiences and indulge themselves, while trying to stave off old age with healthy behaviors and a youthful attitude. Generation X, born between 1965 and 1980, has always been a generation at a crossroads, born into the rapidly changing, financially insecure, topsy-turvy 1960s and 1970s. Members of this generation have struggled to make their place in the world. Now they’re raising children of their own, and their values and choices revolve around the twin suns of work and family. Young Millennials, who were born after 1980, live in an ethnically diverse context of fluid identities and hyper-busy, on-the-go lifestyles. They’ve never known life without the Web, and their world is in good part a cyber-world of texting, Twitter, Facebook and MySpace. To further complicate the context, the Great Recession has affected each generation differently. Older Americans have seen their nest eggs shrink; Gen X families find it increasingly difficult to make ends meet; and Millennials are embarking on college and careers in a dark, stormy economic climate. In such an environment, how can restaurants serve, please and market to each generation without alienating the others?
December 2009
1
How the Generations Dine As different as the generations are, it should be no surprise that “dining out” means different things to each. Millennials and, to a lesser extent, Generation X grew up with frequent use of restaurants and takeout and have continued that pattern. A Technomic study of the generations found that nearly half of all Millennials eat more meals away from home than at home—a choice undoubtedly related to their on-the-go lifestyles. However, only four in 10 Gen Xers dine out more frequently than they eat at home. Boomers almost always ate at home when they were growing up, and in adulthood they’ve mostly tended to reserve dining out for special occasions (although Hispanic and African American Boomers are more likely than their white counterparts to have a heavily restaurant-oriented lifestyle). Those Who Eat Out More than at Home, by Generation Top two box = agree completely and agree somewhat
39% I eat out at restaurants more frequently than I prepare my own food at home
44% 40% 33%
All
Millennials
Gen X
Boomers
This generational pattern of restaurant use may be changing. A 2009 study found that consumers over 50 are dining out more, while those under 35 are dining out less—probably related to the disproportional impact of the recession on young consumers and young families.
Boomers tend to eat at "regular" hours while Gen Xers and Millennials often opt for late-night dining or snacks.
Full-service independent restaurants hold greater appeal for Baby Boomers than for other generations. Baby Boomers prefer the most traditional types of both limited-service restaurants and full-service restaurants, but other generations exhibit a preference for newer concepts.
December 2009
Please Indicate How Many Times Per Month You Have Ordered From Each of the Following Types of Restaurants.* Those ordering at least once per month
77% 84% 78% 71%
Fast-food chain restaurants Upscale fast-food chains Coffee shops Familystyle chain restaurants Traditional casualdining chain restaurants Locally-owned, sit-down independent restaurants All
Millennials
37% 47% 36% 27% 32% 42% 32% 21% 40% 49% 36% 33% 52% 61% 50% 44% 55% 59% 51% 54% Gen X
Boomers
*Includes dine-in and takeout/delivery occasions
Younger consumers are more likely than older consumers to use takeout, and far more likely to use delivery. Far fewer source food from a restaurant during the weekend than during the week. Generation X is equally comfortable with both dine-in and takeout (although the fact that many Gen X members are living with young children likely pushes more use of takeout and delivery at the expense of dinners out). Generation X consumers eat out less frequently on weekends than they do during the week, with the exception of dine-in breakfasts. Boomers see restaurants as more than just a convenient way to source food. They’re more likely than younger consumers to use restaurants for traditional dine-in meals, less likely to use takeout, and far less likely to rely on delivery. Boomers’ preferences reflect not only their traditionalism but also their flexible empty-nest lifestyles and relative affluence. They see a dine-in meal at a full-service restaurant as a chance to get out of the kitchen, relax and connect with friends and family.
2
What 'Good Food' Means
The Restaurant Environment
All generations choose their restaurant experiences based on food above everything else, but they have different ideas about what “good food” means. The availability of food that tastes freshly prepared is important to both Baby Boomers and Millennials. A wide selection of “better for you” choices is important, too. Boomers and Millennials also say that the opportunity to increase or decrease portion size is an important factor when they choose a restaurant for a dine-in meal.
The generations also have different preferences for restaurant ambiance. For instance, Boomers prefer quieter settings; in fact, noisy environments may be a significant contributor to Boomers’ declining interest in dining out. Millennials are most likely to enjoy lively dining environments. Gen Xers, not surprisingly, are somewhere in between. Overall, all generations expect fast-casual chains to be relatively quieter than QSRs, and full-service restaurants to be much quieter. Although Millennials prefer upbeat music in a fast-food restaurant, most respondents prefer soft music in any dining environment rather than up-tempo selections or no music at all.
Baby Boomers believe in balanced meals, consumption of fruits and vegetables, and avoidance of fats. They care less about natural and organic choices and specific functional foods than younger consumers do. They do, however, have a mental list of foods to be avoided; for instance, Boomers systematically avoid trans fats. Older consumers are more likely to restrict their diets due to health issues, so healthy choices in restaurants may be a necessity for them.
Millennials like both sweet and spicy flavors and are particularly attracted to combinations such as barbecue or Thai flavors.
Generation X members are far less satisfied with their health status and behaviors than either their elders or the Millennial generation that follows them, a fact that’s related to their search for “better for you” items on restaurant menus. Since many Gen Xers are parents, they’re also interested in healthier options for their children.
Millennials are the largest users of natural and organic foods, but are less likely to avoid specific items, such as trans fats. While the majority of Millennials say freshly prepared food is important, they’re slightly less enthusiastic than older consumers. Millennials are also less concerned about healthy choices. Baby Boomers, who grew up in a more traditional America eating home-cooked meals, are drawn to familiar comfort foods. But Generation X and Millennial consumers have spent their entire lives in a multicultural environment. They’re curious about global cuisines, and would likely be interested in exotic flavor profiles.
December 2009
Different generations are also drawn to different décor schemes. Older Americans tend to be attracted to rich or neutral colors, natural fabrics and elements from nature such as wood and stone. Younger consumers, in contrast, tend to like bright, hard-edged, industrial-look environments. The family or adult orientation of a restaurant is a consideration for every generation. Boomers looking for tranquil, adults-only dining occasions, and Millennials out for a night with a group of friends, would rather not be surrounded by large numbers of boisterous children. But a familyfriendly environment is very important for the majority of Generation X consumers (as well as younger and older adults who live with children).
Opportunities for Operators
Most operators strive to maintain a suitable atmosphere that appeals to consumers across generations. However, for operators that have a patron base that skews to a specific generation, adjustments to the menu, ambiance, service style and other elements can be leveraged to help position the concept more closely to its core consumers. For instance, when serving multi-generational clientele, fast-casual and full-service restaurants should limit upbeat music that attracts a younger diner and go with softer music. Consider changing the restaurant’s ambiance to match different clienteles at different times of day. To appeal to a
3
Opportunities for Operators—continued younger crowd, for instance, Denny’s offers separate late-night menu items—heavy on snacks and spices—along with louder background music and more contemporary uniforms for servers. Information about nutritional content and the availability of “better for you” options will help those in all generations manage their diets. To support these efforts, operators can offer a choice of portion sizes and/or include calorie information on menus. Restaurants may find balanced-meal combinations and portion-size options to be more popular with customers than menus that list calorie counts or emphasize lowcalorie foods. Restaurants should consider the potential of including more fruits, vegetables or whole grains in appetizers, entrées and desserts. Restaurants are valued for social gatherings, particularly among the Millennial generation. Alcohol service, large table or booth seating, and meals that can be prepared for a group of diners to share will contribute to a restaurant’s social appeal. When Generation X looks to order food from a restaurant, the convenience of takeout is of primary importance. Restaurants could generate more business from Gen Xers if they were to make takeout services more convenient—such as offering more precise estimates of when the food will be ready, making pickup of the food easier (with curbside pickup/checkout or at least designated parking spaces for those with takeout orders).
Sysco Can Help Through its Marketing Associates and Business Reviews, Sysco can help restaurants understand changing generational demographics and design their food, ambiance and marketing to meet the needs of their community. Sysco’s iCare program connects restaurateurs to business partners that offer value-added resources. Some of the current iCare partners that can offer help include: Executive Dining Club: Turnkey website solutions for online orders. Ordereze.com: Customized websites that are easy and painless to operate. Constant Contact: Affordable email marketing campaigns. Restaurant.com: A unique strategy to help fill your tables. Moving Targets: Offers three lowcost direct marketing services proven nationwide to influence people to visit you and spend money. Google’s Local Business Center (www.google.com/lbc/syscoicare): Independent restaurants can “get on the map” by creating an accurate, customized, online listing for free. Operators gain insight into how their customers are finding them on Google, and customers can print coupons through the Google site. Information on the Sysco iCare program and iCare partners can by found at: www.syscoicare.com.
Children will likely become brand-loyal to operations that provide them with an experience and foods that allow them to grow, learn and experiment within their own comfort level. Operators have opportunities to appeal to older kids with smaller-size steak entrées, pizzas beyond the typical cheese variety, and mixed-grill offerings that feature shrimp alongside the traditional kids’ favorite, chicken.
December 2009
4