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Tech Tracker: How digital tech is capitalizing on the hot restaurant reservations market
Tock and Google now offer experience reservations; Diibs launches as a platform for bidding on last-minute reservations
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 man>> Meet the higher-income woman>> Meet the Baby Boomer >>
Value is paramount
Families with kids prefer quick-service chains for kid-friendly options and a low price point. This group is less concerned with the experience, and more concerned with price and convenience.
Families with kids are most likely to dine out during the dinner daypart. Nearly 40 percent of restaurant visits are at dinner.
Breakfast offerings are not important to this group. Families with kids are below-average users of the morning daypart.
Convenience is key
Carry-out, drive-thru and delivery options are critical for families with kids, and account for nearly 64 percent of restaurant visits. Families find it more convenient to take food to go, or to have food brought to them.
Despite the convenience factor, e-commerce is not yet significant to this group, accounting for only 5 percent of total spending.
Watch out for:
Families with kids spend more money at mass merchants than any other type of retailer. These one-stop shops offer opportunities for both food and nonfood purchases.
Any moves in the prepared-foods arena will be big competition for restaurants catering to this value- and convenience-minded consumer.
Her top brands | Her top restaurants |
---|---|
Walmart | Hibachi Sushi Supreme Cafe |
Winn-Dixie | McDonald's |
Sam's Club | Jim n' Nick's Bbq |
Dillards | Zaxby's |
Target | Railyard Brewing Co. |
Convenience and healthfulness are both important to Millennial families. Many restaurants are adding fresh, grab-and-go meals. Photo: Panama7/Thinkstock
1. Provide convenience. Families with kids tend to visit quick-service chains more often than other types of restaurants, according to NPD data.
Millennial families with a car typically use the drive-thru or have the meal delivered, NPD found.
Millennial parents like Kim have varied restaurant choices, but most of them lean toward quick-service chains like McDonald’s for convenience.
In addition, “A lot of restaurants are adding fresh, grab-and-go packaged meals that people can take with them,” said Chris Tripoli, principal at the Houston-based A’La Carte Foodservice Consulting Group.
2. Cater to smartphone natives. Customers shouldn’t have to struggle to find information about your restaurant while using their smartphones.
“Your websites have to be able to be read easily on mobile devices,” Tripoli said.
You don’t have to have mobile pay, said Tripoli, but the basics of menu, location and directions should be accessible on a phone.
And because Millennial parents are frequently mobile on errand days — Kim made seven stops, including one restaurant, and spent $455.10 on her six-hour shopping day in January — having access to restaurant information while on the go is doubly important.
3. Offer healthfulness up front. When Millennial moms purchase food from restaurants, NPD found, it is more likely for dinner or a snack. Restaurants can capitalize on that by offering more healthful options for both of those occasions.
“Those moms are thinking more than the guys about the food that she and her family are eating,” said Jamie Cohen, chief branding officer of Jason’s Deli.
“Without giving our secrets away, digital targeting around that message works as well as community-level engagement,” he said.
But extremes aren’t necessary when it comes to healthful offerings for Millennial families.
“It doesn’t have to be low-cal and sugar-free at all, but it just has to fit into their healthy lifestyle,” Tripoli said.
That means “fresh and seasonal and colorful,” he noted.
4. Go for light décor. For Millennials, the desire for fresh extends beyond food.
“Millennials are very attracted to things that are fresh and clean. It needs to focus on the people and the food,” Tripoli said.
Thematic or cluttered environments have less appeal for Millennials, he noted. Brands that are doing décor well include Panera Bread, Chipotle Mexican Grill and Starbucks, he said.
Tying in something local and community-oriented, such as support for local food pantries, can also appeal to Millennials.
“They can turn their parking lot into a place for the local blood bank, and Millennials can go next door to the restaurant and get a little orange marmalade cracker,” Tripoli said.
5. Keep an eye on value. While Kim spent $19.06 for lunch at McDonald’s, which NPD found included two Happy Meals and a selection from the value-priced McPick 2 for $2 menu, restaurant operators have other ways of appealing to her pocketbook.
Cohen said rewards programs — such as rewarding scholastic excellence through Jason’s Deli’s Student Rewards program, and giving back portions of sales from fundraisers and spirit night activities — help the brand enhance its value position in the community.
Jason’s Deli also rewards coaches and bus drivers with up to $10 off their meals when they bring in sports teams, which can amplify the brand’s value messaging.
Zaxby’s appeals to both kids and value-conscious parents with menu items such as the Kidz Nibblerz. Photo: Zaxby’s
Chick-Fil-A’s healthful options. A nod to healthfulness can go a long way. In January, Chick-fil-A swapped menu stalwart cole slaw for a fresher, lighter kale-and-broccolini-based “superfoods” salad with dried cherries and nuts.
It also doesn’t hurt that the side is only a 94-cent upcharge on any combo meal.
David Farmer, Chick-fil-A vice president of menu strategy and development, said at the time: “We are always looking for new ways to introduce healthier and all-natural items to our customers.”
Zaxby’s value pricing. Millennial families seek value, given their budgets. One of Kim’s favorite restaurants, Zaxby’s, works to stay at top of mind and bottom of dollar with its Zax Kidz menu. Will Riley, Zaxby’s vice president of brand marketing, said the chain makes sure kids’ meal options — such as Kiddie Fingerz, Kidz Nibblerz and Kiddie Cheese (all with fries) — are priced competitively.
Chick-Fil-A’s speed. Make it easy for Millennial families to use your restaurant — fast.
During peak periods, some Chick-fil-A locations will open two-lane drive-thrus and staff them with line-busting employees armed with hand-held ordering devices to speed throughput.
“Just as much as the Millennial mom will look for how to eat better, she also wants to do it conveniently,” Tripoli of A’La Carte said.
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