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Adapting to Generational Shifts: Key to Attracting New Restaurant Diners
Feb 12, 2025
The insights shared in the State of the Restaurant Industry 2025 report, presented by the National Restaurant Association, offer a detailed overview of the challenges and opportunities facing the industry. It's crucial for restaurateurs to understand how generational shifts are influencing staffing, spending behaviors, and dining preferences post pandemic. With industry projections indicating significant growth, adapting strategies to cater to different generational needs is vital.
Restaurateurs must recognize the unique preferences of each generation. The generational breakdown not only helps restaurant owners tailor their offerings, but also allows better implementation of marketing, hiring and price strategies. Adapting to these diverse expectations is key to attracting new clientele, staying competitive, and ensuring long-term growth in an increasingly dynamic market.
Generational Influence on Restaurant Staffing
- Boomers & Gen X: Baby Boomers and Gen Xers are staying in the workforce longer, but many operators still struggle to attract older generations back into the industry.
- Millennials & Gen Z: Younger workers (Millennials and Gen Z) are likely to prioritize flexibility, remote work, or jobs that align with their values. They're less likely to stay long-term due to the demanding nature of the industry, contributing to the gap in staffing.
Generational Spending and Dining Preferences
- Boomers: Generally, Baby Boomers still dine out frequently but focus more on quality over cost.
- Gen X: Gen X is likely to spend on dining out, but value is increasingly important.
- Millennials: This generation values experiences and convenience, often opting for tech-driven dining solutions like digital ordering, delivery, and loyalty programs.
- Gen Z: Gen Z is highly driven by affordability and social impact. They gravitate toward dynamic pricing, sustainability, and brands that align with their values.
Labor and Food Costs Across Generations
- Boomers & Gen X: Older generations have more tolerance for price increases, often willing to pay a premium for dining experiences they trust. They are less likely to expect significant flexibility on pricing than younger generations.
- Millennials & Gen Z: These generations are more sensitive to rising prices and food inflation, leading them to seek out value options like loyalty rewards and discount programs.
Technology Adoption and Consumer Behavior
- Boomers: Although Baby Boomers are adopting technology at a slower pace, many still appreciate the ease of digital menus, online ordering, and contactless payment options when dining out.
- Gen X: Gen X is comfortable with digital tools but still prefers a balance of in-person service. They are open to digital promotions but may prefer a mix of traditional and modern dining experiences.
- Millennials & Gen Z: Both generations are the most tech-savvy, embracing online ordering, mobile apps, and personalized marketing. They expect real-time discounts and deals via apps and social media, making them more likely to return to restaurants offering these tools.
Key Generational Differences Summary
- Staffing & Employment: Older generations (Boomers and Gen X) are less likely to fill labor gaps compared to younger generations (Millennials and Gen Z), who seek flexibility and alignment with personal values in their work.
- Spending Trends: Millennials and Gen Z are more price-sensitive, valuing deals and discounts, while Boomers and Gen X focus on quality and experience but may tolerate higher prices.
- Food & Labor Costs Impact: Younger consumers are more sensitive to food price inflation and seek value-driven dining options, whereas older generations are more willing to absorb cost increases for a quality dining experience.
- Technology & Consumer Behavior: Millennials and Gen Z are more inclined to embrace digital tools for dining, loyalty programs, and real-time promotions, while Boomers and Gen X prefer a more traditional approach mixed with modern conveniences.
This generational perspective provides a clear picture of how each group is influencing the restaurant industry’s current landscape, from staffing to spending and technology usage.