The Millennial generation — 52 million people between the ages of 18 and 29, many of whom love to eat out — continues to be a crucial demographic for the restaurant industry to serve.
But according to The NPD Group’s “Reaching the Millennial Generation” report, immigration will cause this group to grow and become even more diverse in the next 10 years, necessitating greater menu variety at restaurants than ever before. Operators also need to think more about new dayparts to cater to Millennials, the market research firm found, as those consumers have a greater tendency to snack between meals than guests from other generations.
Millennials, sometimes referred to as “Generation Y,” are more diverse than previous generations. Only 61 percent of Millennials are white, compared with 71 percent for adults 30 and older. Among Millennials, 14 percent are black, compared with 11 percent for older adults, while 19 percent are Hispanic, compared with 12 percent of older Americans.
Nearly half, or 47 percent, of the 1,933 Millennials surveyed were full-time students, while 9 percent were part-time students. Forty-four percent of respondents were not in school. Forty-four percent of Millennials did not work, 30 percent worked at least 35 hours per week, and 32 percent worked less than 35 hours per week.
“Millennials are moving into their heavy foodservice-using years, and this is the time to reach them to build their loyalty,” Riggs said. “In reaching out to them, it’s important to understand that Millennials are not a one-size-fits-all generation, and their needs and wants are varied.”
Millennials accounted for 13 billion of 59 billion restaurant visits in 2010; they collectively spent $73 billion. The majority of those consumers’ activity was at commercial foodservice establishments, which accounted for 10.2 billion visits and $63.7 billion in sales, compared with 2.7 billion visits and $9.6 billion in sales at noncommercial foodservice outlets.
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In the report, NPD forecasts that Millennials will outnumber the baby boomer generation — which the Population Reference Bureau estimates at more than 70 million Americans — within the next decade.
“Millennials will overtake baby boomers as the most sought-after target for restaurateurs in the coming years,” said Bonnie Riggs, NPD restaurant analyst and report author. “In order to attract this generation, foodservice operators and manufacturers will need to understand both the similarities and differences among Millennials.”
As a group, Millennials reported that they spend more than half of their foodservice dollars on to-go or carryout foods. They also spend a higher percentage on snacks compared to other generations, leading to more sales among Millennials of items like ice cream, chicken nuggets and mini sandwiches.
Contact Mark Brandau at [email protected].
Follow him on Twitter: @Mark_from_NRN
