The race is on for the consumer's food dollar. Use this report to understand what consumers want and how you can meet their needs. If you don't, they have many other options. Get the full report>> Consumers have more choice, less money>> Meet the Millennial family>> Meet the Millennial man>> Meet the higher-income woman>>
.svg?width=1280&auto=webp&quality=95&format=jpg&disable=upscale "Nation's Restaurant News")
Photo: Image Source Pink/Thinkstock
Offer quality — they'll pay for it
Baby Boomers without kids are the highest users of full-service restaurants. This group has disposable income, and is willing to spend it on quality.
This group is below average when it comes to quick-service use. They are less concerned with value and speed when it comes to dining.
Tina’s demographic includes the heaviest dinner users, and the lowest users of afternoon snacks. This group prefers three square meals a day.
Offer an experience
Baby Boomers are the highest users of on-premise dining. The environment is just as important as the food quality.
This group includes the lowest users of e-commerce. They are likely less interested in online and mobile services.
Watch out for:
High-end retailers. This group shops frequently at high-end retailers, which means they have ample opportunity to bump into prepared food offerings.
Keep an eye on high-quality, casual-dining concepts attracting a more affluent customer.
Successful casual-dining concepts focus on both food and service. Be sure that your concept does well at both.
| Her top brands | Her top restaurants |
|---|---|
| Belk | Cracker Barrel |
| Publix | LongHorn Steakhouse |
| Target | Carrabba's Italian Grill |
| White House Black Market | Mellow Mushroom |
| Kroger | Outback Steakhouse |
Simple considerations like legible fonts on menus and ample light to peruse offerings can help Baby Boomers feel welcome. Photo: Creatas/Thinkstock
1. Keep the noise down and the lights up. Baby Boomers “are very displeased with the noise in restaurants, that you cannot carry on a conversation,” said NPD analyst Bonnie Riggs. They also want menus to have print large enough to read easily, and lighting that’s bright enough to see the words. Although many restaurants now offer miniature flashlights for customers to use, that courtesy only reminds Baby Boomers that they’re in a restaurant that wasn’t designed for them, Riggs said.
2. Make them feel welcome. Marketers spend a lot of time trying to attract Millennials, even though Baby Boomers are heavier restaurant users than younger groups, according to NPD. Furthermore, Baby Boomers are more brand-loyal, Riggs said. But Baby Boomers want attention, said Sara Bittorf, CMO of Bob Evans Restaurants. “Millennials … are much more open to ordering at a kiosk and not having human interaction,” Bittorf said. But Bob Evans’ Baby Boomer customers “say things like, ‘I want to feel like a valued customer.’ [They] want to feel like they are acknowledged for a decision they made to spend their hard-earned money. And when they don’t get welcomed and they don’t get thanked … I think that becomes a problem.”
3. Focus on value, not price. According to the American Association of Retired Persons, or AARP, people ages 50 and older control more than 70 percent of total disposable income in the U.S. Baby Boomers have money to spend, but they don’t want to waste it. Boomers, “are a generation that still has the most spending power, and they are definitely willing to spend for the brands that meet their needs, but only if they feel they are getting the absolute best combination of high-quality food, price, customer service and dining experience,” said John Dillon, CMO of Denny’s Corp. That could mean smaller portions at a lower price, or it could mean a delicious cheeseburger, he said.
4. Accentuate brand loyalty. “In today’s market, the only way you’re going to grow your market is building brand loyalty and getting repeat visits,” Riggs said.
Baby Boomers, along with those in the over-70 group, are the most brand-loyal consumers in the country, Riggs said. They appreciate it when servers remember their likes and dislikes, and will tip well for courteous service, she said. Furthermore, they take advantage of loyalty programs, she said, and will cash in on discounts and free meals, even if they have to use an app for it. “We don’t give seniors enough credit for being technologically savvy,” Riggs said. “They use apps on their phones like everyone else.”
5. Remember that Baby Boomers use social media, too. “We have seen rapid adoption of social media channels like Facebook and YouTube by Baby Boomers,” said Don Hoffman, vice president of marketing at Cracker Barrel Old Country Store. “We make it a point to understand which platform each of our target segments prefer, and make it a point to engage with them on their own terms.” However, Dillon of Denny’s said Boomers use social media differently than younger generations. “For them, technology is less about self promotion and more about making their lives easier, or communicating with family and friends,” he said. On Facebook, where Denny’s has a higher percentage of Baby Boomer users, the chain features promotions, menu items and other news. “Whereas on our Twitter page, where our Millennial and Gen Z fans are more active, we tend to focus on pop culture and Internet memes.”
Facebook is the social media platform of choice for Denny’s Baby Boomer customers, CMO John Dillon says. Photo: Denny’s/Facebook
Bloomin’ Brands’ loyalty program. Baby Boomers are brand-loyal and like being appreciated for it, NPD analyst Bonnie Riggs said. Rewards programs can set up a systematic way to do that, but don’t fall into the stereotype of early-bird specials. “That’s not the type of program that [younger Boomers] are looking for,” Riggs said, adding, “A free drink’s not going to cut it.” Bloomin’ Brands Inc., based in Tampa, Fla., recognized the appeal of loyalty programs earlier this year. The parent to Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar introduced the DineRewards loyalty program in July, which lets customers collect points that can be used at all four concepts. Bloomin’ Brands customers, many of whom are Baby Boomers, responded to the offer with alacrity. By July 29, 800,000 people had signed up for the program.
Denny’s menu targeting. Few Baby Boomers need or want meals of the same size as males ages 18 to 34, and they resent being charged to split an entrée. “It’s nickel and dimey,” Riggs said. Instead, give them smaller portions at lower prices, and you’ll end up selling two entrées instead of one, she said. Denny’s does that with its 55 Menu, featuring a range of smaller, lower-priced dishes. Additionally, the chain offers a 15-percent discount to AARP members. Cracker Barrel has a somewhat more holistic approach, allowing “kids of all ages” to order from the children’s menu.
Denny’s Facebook Strategy. Facebook remains the social media platform of choice for Baby Boomers, who, according to Denny’s CMO John Dillon, use the technology to connect with friends and family, and to make their lives easier, rather than for self promotion. “The more we can embrace that mindset — helping our customers make better decisions — the better we can serve them,” Dillon said.
So the family-dining chain’s Facebook feed highlights new menu items and specials. It saves its web series, “The Grand Slams,” and other Millennial-friendly, brand-building media for other forums.
Read more about:
Bloomin' Brands
