Restaurants Challenged to Attract Gen Z Diners

The restaurant industry has its hands full with crafting an appeal to attract Gen Z to its restaurants.

The influencing factors are many, including financial priorities, nutrition and inflation. Perhaps an even greater factor is attitude, according to an analyst at Avison Young.

Christopher E. Maling, principal-retail capital markets, tells GlobeSt.com, “Gen Z’s reason for not visiting restaurants as much as past generations has to do with options. The advent of meal delivery services has created an attitude of ‘I know what I want…bring it to me now. I can’t be bothered to leave my pool, video game or sports to go and frequent a fast-casual or sit-down concept restaurant.’

“This is a generation of young people with different priorities and outlook on their personal experience regarding food consumption and restaurants. Additionally, some are still choosing not to venture out for fear of COVID variant exposure or challenged social skills as a result of isolation.”

A More ‘Health-Conscious’ Society

Rachel Forslund, brokerage associate, The Woodmont Company, tells GlobeSt.com that Gen Z’s step back from restaurant visits likely stems from three main factors: health, budget and technology. 

“This generation was raised in a more health-conscious society than earlier ones, with nutrition always being top of mind,” Forslund said. “While restaurants boast healthier options, they still can’t offer the quality and cleanliness that the home kitchen can. Second, as the market evolves, so does the price of eating out and it’s hard for Gen Z to budget restaurant tabs. 

“Finally, if not because of health and finances, platforms like GrubHub, UberEats, and Doordash provide ease of access, time and effort. As these platforms become more sophisticated with improvements in technology, they make it easier and easier to order restaurant food and eat it from the couch or office, and everyone knows this generation loves improvements in technology.”

DIY: Dine-In-Yourself

Pam Mendelsohn, co-founder of retail-specialist Maven Commercial, tells GlobeSt.com that a slowdown in Gen Z dining seems driven by factors related to them spending their money differently than others, and that they care more about sustainability, good health and reducing wastefulness. 

“Gen Z’ers are into DIY, do it yourself, or dine-in yourself, and they love in-home dinner parties,” Mendelsohn said. 

“On the flipside, what can bring Gen Zers out to restaurants are places with backstories, or with activities, or that have great outdoor areas. Popular examples are breweries, participatory cooking, karaoke, performance venues, nostalgic places, kitschy environments, interesting design, on-site farms and the like.”

Mendelsohn said some restaurants are finding success in making themselves a “moment” for Ticktock or Instagram, welcoming diners to snap/type/post to get into online networks quickly. “This is great marketing,” Mendelsohn said.

Reach Their Preferred Advertising Platform

Restaurant operators and their manufacturer partners must quickly adapt to how Gen Z consumers think and feel,” David Portalatin, NPD food industry advisor and author of Eating Patterns in America, said in prepared remarks.

“An understanding of which menu items to emphasize, the food attributes they seek, menu innovations that appeal to them, and their preferred advertising platforms will help you win the favor of this valuable generation,” he added.