Gen Z is transforming the global economy with its combination of technological expertise and a strong emphasis on values-based spending. As the first generation to grow up fully immersed in the digital world, they are changing how companies approach business to gain their trust and loyalty.
Having been shaped by experiences like the pandemic and economic challenges, this generation tends to be more pragmatic and financially conscious. Despite this, they maintain a strong desire for social and environmental progress, often seeking out brands that prioritize sustainable and eco-friendly practices.
For Quick-Service Restaurants (QSRs), understanding and catering to Gen Z's preferences has become a necessity for staying competitive. With Gen Z's spending power projected to reach $143 billion, adapting to their tastes and values is critical for success in the evolving market.
Recent Statistics for Gen Z
Several studies were made to help food service businesses adapt to evolving consumer preferences. The notable findings of those studies include the following data:
- 25% of Gen Z spend between $25-36 on delivery orders through apps or online platforms.
- Dining out accounts for 21% of their budget, making it their third-largest spending category.
- 42% of Gen Z would rather order takeout than eat out on a Friday night.
Globally, Gen Z's favorite foods are burgers, pizzas, and tacos. However, in the U.S., sandwiches top the list, while in the UK, curry takes the lead.
This article will outline the key strategies for Quick-Service Restaurants (QSRs) to connect with Gen Z by embracing tech-savvy, sustainability-focused, and experience-driven approaches.
Top Strategies for QSRs
Use Technology
A successful marketing strategy must account for Gen Z's deeply integrated digital lifestyles. Mobile phones and the Internet are central to their everyday activities, from shopping to making payments, with social media serving as their main communication and discovery hub. Nearly 40% of Gen Z consumers use in-app payments, and 34% rely on mobile wallets, making mobile ordering and contactless payment options essential for Quick Service Restaurants. These payment methods are not only convenient but also provide enhanced security, reducing the risk of fraud. To engage Gen Z effectively, QSRs should create interactive and authentic content on platforms like TikTok and Instagram, where most of this generation finds inspiration and dining ideas.
Accentuate Sustainability
A recent First Insight study revealed that Gen Z places high importance on sustainability when making purchase decisions, but they expect companies to demonstrate real action, not just claims. For example, major brands are setting ambitious goals, like achieving net-zero emissions by 2050 or transitioning to fully sustainable packaging by 2026. Quick-service restaurants can appeal to eco-conscious Gen Z customers by adopting plastic-free, biodegradable packaging and offering environmentally friendly disposal options. Combining sustainable packaging efforts with food waste reduction sends a powerful message to this generation. Additionally, transparency about ingredient sourcing, fair trade practices, and local community support can build trust and long-term loyalty with Gen Z consumers.
Add Healthy Options
Gen Z craves quick, tasty, and affordable meals while seeking healthy options and unique dining experiences that match their lifestyle. To appeal to their focus on wellness, QSRs should provide convenient, healthier choices like organic, vegan, and low-calorie dishes that accommodate various dietary preferences. Customization is also crucial. Offering the ability to adjust ingredients, portion sizes, and cooking methods allows Gen Z to tailor meals to their health goals. By consistently meeting these preferences, brands can foster loyalty and encourage repeat visits.
Focus On Experiences
Beyond the menu, QSRs can engage Gen Z by creating cool, memorable experiences. One approach is investing in trendy, Instagrammable interiors that reflect current design trends, enhancing the atmosphere. Many influencers share their dining experiences online, and eye-catching decor encourages them to post photos and videos, drawing more visitors and boosting the restaurant's brand. Digital experiences are just as impactful. Restaurants can use platforms like TikTok to engage Gen Z with creative content and challenges. Exclusive promotions are essential for attracting Gen Z, who value unique and personalized experiences over traditional rewards. They're more likely to be enticed by limited-time offers or exclusive access than by standard discounts or cashback programs.
Final Thoughts
As Gen Z's influence grows, Quick Service Restaurants must evolve to capture this key demographic. By focusing on technology, sustainability, health-conscious options, and unique experiences, QSRs can attract these digital natives who are shaping the global market. Tools like mobile ordering, contactless payments, eco-friendly packaging, and customizable menus are essential to winning over Gen Z, not just serving them.
Gen Z isn't just tech-savvy; they prioritize authenticity, sustainability, and meaningful experiences. QSRs that embody these values can build deeper connections beyond transactions. As the industry adapts to this new generation, those who embrace these changes will thrive.