Demographics is said to have a great influence on the market. Most businesses generally target the working sector. In today’s scenario, the Millennial or Gen Y forms the major crowd of earning sector.
Gen Y greatly differs from the Baby Boomers (the previous generation of Gen Y). Their expectations and preferences have shaped the market trends and businesses.
Let us consider the Food and Beverage (F&B) business to elaborate on Gen Y’s influence on market. Here are some traits commonly observed in Gen Y that shapes the F&B industry.
- Questions a lot and then decides
F&B industry is susceptible to change depending on the current trends and consumer interests.
Unlike the previous generation, the Gen Y questions about the product and then decides what they want. They would want to know what’s on their plate.
They decide what they want to have and how—whether to add sugar or honey; extra cheese or low-fat; grilled or baked and so on.
Many pizza outlets allow customers to choose/pick the ingredients that need to be on the pizzas they order.
- Constantly monitors trends
Gen Y is more social and tech savvy. Therefore, the online presence of a company or establishment is very important for marketing. Gen Y collects or gathers information through social media, websites and apps before deciding. The F&B industry is highly competitive and therefore demands creative marketing strategies to establish the brand in the market.
- Loves fusion and innovation
Gen Y frequently travels across the world and are exposed to a wide range of choices. The tendency to try out different things, right from adventure sports to varied cuisines is commonly noticed.
Therefore, the F&B industry needs to deliver something new and exciting for the customers every time. The expansion of Thai, Chinese, Italian, Mexican and other theme-based restaurants in the recent times are examples of change in this industry due to Gen Y.
They want the best cuisines of the world on their plate. Fusion cuisine (a combination of different cuisine style) is the new style that’s creating a buzz in the market.
It’s important that hoteliers need to be up-to-date and flexible to the changing trends in the market. For example, the red velvet cake, Mochi ice cream and mug cake were trending a few months ago. Almost every other café had these items on their menu.
- Health conscious
Although Gen Y prefer quick-eat foods, they are health conscious too. They prefer to stay fit by adopting a suitable diet plan. Many brands tap into this and offer wide range of products such as organic, low fat, low carb, sugar-free, gluten free, diet meal, energy bar, health drink and the list goes on.
Brands educate consumers about the benefits of consuming its product or a particular ingredient of the product.
- More focused on experience than price
Today, people spend more on food and hospitality services. They consider experience more important than the price they pay for the service.
Experience is not limited to the dining area, comfortable cushions and candles but also cover how the food is served.
For example, in the past few years, coffee houses has undergone a lot of changes that has led to the development of cafés and bistros serving nitrogen infused coffee, cold brew coffee, coffee shots and a lot more.
- Gives productive feedback
Consumer feedback is made online now. Customers provide constructive feedback and also rate the food and service based on their dining experience.
Reviews and ratings of a restaurant or hotel cannot be overlooked as these are considered seriously by several other potential customers.
Smart businesses are open to customer feedback and are willing to make changes to meet the demands and satisfy customers. Engaging or interacting with customers individually adds more value to the business.
Mobile marketing extends to sending customised / tailor-made messages to customers including greeting them on special occasions, informing them about offers, discounts or coupons and thanking them for visiting—which paves way for customer loyalty.
Well, we have come to the end of this article. There are several other qualities of Gen Y that shapes the strategy of businesses. Hope it was useful to you.