Gone are the days of punch cards and membership programs for restaurants. It’s the dawn of a new era of dining that includes extras, games, and loyalty. We’re not going to say it isn’t worth eating out if you don’t belong to a loyalty program, but we are saying it makes it more enticing and fun.

 

Rewards through apps have been a mainstay for a few years now. Some big players include McDonald’s, Taco Bell, and Starbucks. Most recently, though, bigger and smaller chains have been upping their rewards programs, says Nation’s Restaurant News, with nearly 60% of all restaurants utilizing one.

 

The importance of having a loyalty program for a restaurant boils down to repeat customers, says Restaurant News. It’s fantastic to get new customers but to keep them coming back and choosing your place to eat is what makes the programs so valuable. In this digital age, if a customer doesn’t choose you, they’re going to choose from a third party, says the article, because it’s just easy. Since the pandemic began, loyalty programs have been gaining popularity, and the good news is that it isn’t just for the big guys. Small businesses can also gain revenue from these programs and at a relatively small cost, says Restaurant News.

 

One of the smaller chains taking hold of the loyalty opportunity is a New York-based tea concept called Cha Cha Matcha, says NRN. Teaming up with the membership platform, Hang, the tea restaurant is traveling into the metaverse through subscriptions and point systems. Both in-person and online customers can gain rewards for free or access a paid subscription. Customers can unlock rewards like exclusive menu items, raffles, events, and early access to new products in the paid subscription. Cha Cha Match is the first brand to “officially launch a successful Web3-powered loyalty program,” said NRN.

 

Upping their Restaurant Loyalty Perks

 

Upping their loyalty game, literally, is Jimmy John’s, by ‘gamifying’ their rewards, says NACS. In their new app, customers can earn badges to earn food and products from the company. Customers need to purchase 25 Jimmy John’s core menu sandwiches in the latest challenge by March 15th to earn their “Gauntlet Badge.” Earning this will give you a Jimmy Chips beanbag chair. The company, throughout the year, will be releasing new and secret badges to entice customers, says the article, although they may not all be as big as “The Gauntlet.”

 

Chipotle has also joined the ranks of launching a new loyalty program called “Freepotle,” says Chewboom. This reward program offers customers up to ten free “food drops” throughout the year. Customers who are already Chipotle Rewards members will be automatically enrolled in Freepotle and get their first food drop which is either a topping of guacamole or a free side. Those who are not can join by March 6th and get their food drop too. Those free ten food drops throughout the year include (more) free guac, Queso Blanco, chips, drinks, and double protein.

 

Choosing where to dine out these days is about more than just food. It’s about what else you can get for free. With all the competition surrounding loyalty programs and rewards, it’s about enjoying the food you love and earning points to get more of it.

Psychographics broke into public consciousness during the Facebook and British company Cambridge Analytica scandal of 2018.  Many people raised concerns about how psychographic data was collected by the two companies (unbeknownst to the users of the social media platform) and use for political advertising.  Not a great first public impression and a poor introduction to psychographics in general.  So, what is psychographics?

Psychographics is the analysis of consumers’ psychological characteristics.  Psychographics focuses on the cognitive factors that influence the decisions and behaviors of people.  These cognitive factors can include activities, attitudes, biases, hobbies, interests, lifestyle, opinions, personality, and values.

If you’re a restauranteur, you likely looked at the demographics of your target market when opening and branding your restaurant.  At this point, you may be wondering what’s the difference between demographics and psychographics?  Demographics focuses on the external characteristics of people.  Through demographic research, you’ll identify the age, education level, gender, income, location, and profession of your target customer.  While these characteristics are useful segmentation tools, they don’t necessarily provide insights into the why behind your customers’ choices.  That’s where psychographics comes in.  Psychographic research provides a “look under the hood” – if you will – and helps you figure out what makes people tick.

In this blog, we will discuss why restaurants should use psychographics in their marketing and branding.  We will also highlight specific companies in the restaurant industry that are successfully utilizing different psychographic factors in their marketing efforts.  At the end of the blog, we will answer a few frequently asked questions about psychographics.

Why Restaurants Need Psychographics for Marketing

Harkening back to the Cambridge Analytica psychographic scandal…why should you go near psychographics?  First, you want to make all the data you collect is done so legally.  Second, psychographic research is best used for enhancing the experience and engagement of buyers, not manipulating them.  And finally, psychographics can make your marketing and messaging stand out from all the other companies out there.

The restaurant industry is an extraordinarily competitive one.  With so many great dining options out there, people are relying less and less on food quality as the deciding factor in their search for where to eat.  Instead, your potential audience is seeking a unique eating experience, a company that shares their opinions and values, or a relationship with a brand that will elevate their social status.  Over time, customers are caring more about how a business makes them feel and what a company’s brand communicates and represents.

And psychographics can provide you with the nitty gritty details of your customers’ evolving wants, needs, and other psychological characteristics.  Once you understand the motivations and preferences of your target customers, you can create marketing campaigns and restaurant experiences that truly resonate with them and keep them coming back for more.  And spreading the word about your restaurant among their social circles.  The holy grail of marketing.

Psychographic data also gives insights into how customers in your target audience compare and decide among competitors in your market.  Thus, you can free yourself from the price-slashing game and differentiate your business through your brand and the emotional connection you forge with your guests.  This way you unique value proposition (UVP) can become not only more distinct, but broader in scope as it encompasses your food, hospitality, and – now – your brand’s psychographic profile.

Lastly, psychographics can help you establish an emotional connection with your customers – which can have a massive impact on your sales and bottom line.  In research conducted by Harvard Business Review, they found that “fully connected” and satisfied customers provided 52% greater customer value to companies than highly satisfied, but not fully connected customers.  The fully connected customers would buy based on emotional motivators and connectors they shared with companies.

 

Psychographic Factors

Now that we’ve discussed the value of psychographics, let’s get more specific and look at the different factors that are analyzed in this research.  As mentioned above, a variety of psychological characteristics make up the psychographic profile of people.  For the purposes of this blog, we are simply going to hone down these characteristics to a list of five: personality, interests, lifestyle, values and attitudes.  Let’s look at personality, first.

Personality Data & Examples

Personality refers to the traits people exhibit over time.  There are a number of different personality measures used in psychology today.  However, in the business and marketing world, the model that’s used most frequently is the “Big Five” model.  The “Big Five”, or “5 factor” model, includes the following personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.  As such, they are sometimes called the OCEAN model.

Openness refers to one’s openness to trying new things or engaging in new experiences.  People who score high in openness exhibit great levels of imagination, curiosity and “outside-the-box” thinking.  Those who score lower tend to prefer routine, tradition, and predictability.  So, if your brand wants to connect with customers high in openness, you’ll want to make your guest experience surprising and exciting.  Your advertising and messaging should use language that invokes curiosity and wonderment.

Conscientiousness refers to one’s ability to engage in goal-oriented behaviors and regulate their impulses.  People who score high in conscientiousness tend to be self-disciplined, organized and deliberate.  Those who score lower tend to be impulsive, disorganized and prone to procrastination.  Attracting conscientiousness customers to your restaurant takes time.  They are the ones who read all your reviews and your website before they make a reservation.  They love to research many products and solutions before they become clients.  You have to be a bit more patient to win them as loyal customers – which will be worth it because they tend to incredibly loyal to companies.

Extraversion refers to the extent to which one seeks social and environmental interaction.  Those who score high in extraversion are outgoing, sociable, and are “fueled up” by interactions with other people.  Those who score lower are more introverted, self-reflective and value their time alone.  If your target customer is extraverted, you’d want to design your restaurant to encourage interaction through the space, social events, games, etc.  If your target customer is introverted, you’d want a space more subdued – private booths and rooms, lower lighting, perhaps a reading room.

Agreeableness refers to how one interacts with other people.  Those who score high in agreeableness are more trusting, cooperative, and empathetic.  Those who score lower tend to be more assertive, stubborn, and skeptical.  If agreeable people are your target customers, then you’ll want to focus on building trust with them and giving back to the community in some way.  This will attract them to your brand and inspire them to give back to you.  While marketing to less agreeable people is a risky proposition, the best route to gain them as customers is through authenticity.

Neuroticism refers to the degree to which one tends to experience negative emotions.  Those who score high in neuroticism are more anxious, prone to stress, and self-conscious.  Those who score lower tend to be more confident, calm, less prone to stress and worry.  When marketing to and interacting with more neurotic people, you’ll want to drop the hype and platitudes.  These customers should never be pressured into buying and allowed to make their decisions on their own time.

Now that we’ve explored the Big Five, let’s see them in action through a few examples.

 

Example #1

One of the more straightforward personality segments to target is the audience high in openness.  A restaurant that has crafted its experience to this audience is Addo in Seatle, WA.  There, they experiment with tech in every facet of their marketing, content and business – an active TikTok presence, targeted ads on social, Mario Cart nights, an incredible diverse menu that shifts focus every day, and on and on.  By making innovation and experimentation it’s brand cornerstone, Addo enjoys massive engagement from like-minded customers who return time and again to see what chef Eric Rivera is cooking up.

 

Example #2

Other examples of restaurants geared toward the open audience are those focused on molecular gastronomy.  Molecular gastronomy is the fusion of science and art in the kitchen that incorporates new techniques of cooking and presentation.  Some of the most popular restaurants featuring molecular gastronomy include Alinea in Chicago, IL; Atelier Crenn in San Francisco, CA; and Hugo’s in Portland, ME.  In these restaurants, customers are delighted by state-of-the-art meals which typically elicit “oohs and aahs.”  These restaurants essentially make the dining experience their form of marketing, as guests go out and delight their friends with stories about the miraculous concoctions they ate over the weekend.

 

Example #3

Did you know that researchers have studied customer’s impressions of the brand personalities of the largest chains in America?  Zion & Zion research team surveyed 4,363 people to learn about how they ranked the 26 largest quick service restaurants across 5 brand personality dimensions: Sincerity, Excitement, Competence, Sophistication and Ruggedness.  While these personality characteristics aren’t the same as the Big Five, there is some overlap between the two models.  For instance, Excitement would likely correlate to Openness and, perhaps Extraversion.  Competence is an analogue to Conscientiousness.  Sincerity would likely appeal to both an audience with high Neuroticism and low Agreeableness.  Anyway, Zion & Zion found that Chick-fil-A ranked highest in Sincerity, Excitement and Competence. While Burger King, Papa John’s, and McDonald’s ranked near the bottom across multiple dimensions.

Now that we’ve explored how personality fits into the psychographic mix, let’s turn to interests and lifestyle

Interests & Lifestyle Data & Examples

Interests and lifestyle are highly correlative.  Interests may refer to the hobbies, entertainment and media consumption habits, inclinations, and affinities of a target audience.  Lifestyle is best thought of the entire set of a people’s daily, weekly and monthly activities.  This could include where they live, who they spend their time with, and what they occupy their time doing.

Interests and lifestyle segmentation is achieved through research using good, open-ended questions to the target customers in question – such as, “Aside from work and sleep, how do you spend your time?”  Uncovering these characteristics can be a major boon to your marketing and advertising.  For instance – if you know the blogs your target market reads, the podcasts they listen to, the social media groups they belong to – then you have direct access to the language they use, as well as the problems and desires they have.  You also have great places where you can show highly targeted ads. When you understand the lifestyle and activities of your customers, you can use highly relevant metaphors (e.g. running, swimming, climbing, biking, etc.) throughout your content and messaging.  If they have certain food or experiential preferences, you can swiftly incorporate them into your menu and dining experience.

With these ideas and mind, let’s turn to examples of interests and lifestyle branding in the restaurant industry.

 

Example #1

StatSocial, a company that has modeled the US population into 200 unique psychographic clusters through the use of IBM Watson, has put out some interesting research regarding the differences in interests between the Chick-fil-A market and Shake Shack market.  For example, Chick-fil-A’s audience was 12.13x more likely to watch ESPN College Football, nearly 12x more likely to watch the Bible Series, and 8.28x more likely to watch Duck Dynasty – compared to the average social media user.  On the other hand, Shake Shack’s audience was 38.24x more likely to watch Top Chef, nearly 24x more likely to watch Veep, and 27.12x more likely to watch Late Night – again compared to the average social user.  Based on this segmentation, one could come to the conclusion that Chick-fil-A customers’ interests lie with sports and religion, while Shake Shack customers’ interests lie with Foodie and cosmopolitan culture.

 

Example #2

A restaurant chain that has successfully appealed to a growing lifestyle audience is Veggie Grill, a US plant-based food chain.  Through their marketing and collection of psychographic data, they have targeted health conscious people who seek delicious, plant-based dining choices.  As such their menu offers a wide variety of vegetarian and vegan dishes (burgers, salads, sandwiches, bowls, etc.) – in addition to a selection of healthy juices and smoothies.

Aside from its menu offerings, how did Veggie Grill target it’s health-conscious customers?  Among many things, it used targeted social media ads, email marketing and partnerships with influencers.  Veggie Grill also sponsored vegan food festivals and wellness retreat – a brilliant messaging of its company values without saying anything at all.  Through these psychographic marketing efforts,Veggie Grill has been able to open locations in California, Massachusetts, New York, Oregon and Washington.

 

Example #3

While we just saw a how a restaurant entered the lifestyle space, the reverse has started to happen: lifestyle brands have ventured into the restaurant industry.  As lifestyle companies know the importance of experience in building an audience, they’re approach into restaurants was a natural progression.  Some examples include:

• Barstool Sports opening Barstool River North (a sports bar and restaurant in Chicago
• Time Out opening Time Out Markets in Boston, Chicago, Dubai, Lisbon, Miami, Montreal, and New York
• The Hundreds (a Los Angeles-based streetwear brand) hosting Family Style Fest – which featured collaborations between well-known clothing brands and restaurants

These types of collaborations are a marketing win-win for lifestyle brands and restaurants alike, especially when their audiences is closely aligned.  In some ways, the lifestyle-restaurant partnership is the natural evolution of restaurant merchandising.

At this point, we’ve seen how interests and lifestyle are potent psychographic tools in your marketing tool belt.  Now let’s look at the final two psychographic factors: values and attitudes.

Values and Attitudes Data & Examples

Values can be thought of as a person’s measures of right and wrong; good or bad.  They differ among individuals and are informed by beliefs, societal norms, upbringing, religion, and personality.  Attitudes are relatively stable responses (either positive or negative) to a person, place, idea… anything, really.  The complex of beliefs, opinions, attitudes and values holds a tremendous amount of psychological power.  So, the research data and insights you gather on them can be incredibly valuable.

However, many restaurants and companies have historically stayed away from these psychographic factors in their messaging – and for good reason.  Whenever a business shares its stance on a issue, it’s sure to alienate a certain segment of their audience that doesn’t share its attitude or belief.  And no business wants to deliberately shrink its potential market.  That being said, values and attitudes are a largely untapped opportunity for brands.  According to an Earned Brand Study by Edelman, 62 percent of survey respondents said “they will not buy a brand if it fails to meet its societal obligations,” and 55 percent agreed “brands can do more to solve societal ills than government.”

Not only are people looking to companies to make social change, but they’re also hungering for tribes.  Robert Cialdini (renowned for his research in the field of persuasion)  has discussed this as the Unity Principle.  Most people consider their values, attitudes, beliefs and opinions to be the primarily building blocks of their identities.  And when two people (or a company and buyer) share identities, they become a cohesive unit.  By defining the values and attitudes of your business in your messaging, a potential customer will know who you are and, more importantly, who you’re not.  If they identify with you, you’ve just made a buyer into a tribe member.  Apple is an example of a company that has built this kind of tribe.  And their sales have been pretty good…

Now that we’ve come to appreciate the power of values and attitudes in your messaging, let’s look at how certain restaurants have put these psychographic insights into effect.

 

Example #1

A value that has gained big traction in the industry is sustainability.  A prominent example in the fast casual space is Chipotle.  its mission includes the aim to “build a better world”.  How?  Their messaging says through a commitment to only using high quality, sustainably-sourced ingredients.  And Chipotle has walked the walk of its marketing talk.  It sources a great deal of its produce from local farmers, uses antibiotic-free meats, equips its restaurants with energy-efficient lighting, and utilizes compostable packaging.  Chipotle target customer is a younger person who prioritizes environmental issues.  Since Chipotle understands the psychographic makeup  of this market, its values have resonated with these individuals – and they have the sales to show for it.

 

Example #2

Another food service business that has made sustainability the cornerstone of their brand is Founding Farmers.  Just take a look at the start of their mission statement: “Sustainability is not a catch phrase. It’s a natural extension of who we are. We are mission-driven, working every day to make high-quality food and drink grown and made with care, while preserving our land and waterways and giving back to our communities.”

Right off the bat, you know who they are and what they stand for.  Founding Farmers has even partnered with their supplier, Congressional Seafood, to increase the market for the Chesapeake Blue Catfish, an invasive species decimating the local ecosystem.  Guests who eat from their menu aren’t just getting a tasty meal, they’re helping to save Chesapeake Bay.

 

Example #3

Just Salad, a fast casual chain, has taken the mission of sustainability step further.  They partnered with the circular economy-focused investment firm Closed Loop Partners.  Together, the companies are driving to make zero-waste “closed loop” systems scalable.  One way Just Salad is driving this initiative is through its Reusable Bowl  Program, which is promoted and encouraged on their digital platforms through a loyalty program.  There are a number of chains focused on selling healthy salads and bowls (Sweetgreen comes to mind).  But Just Salad is able to attract the type of customer who not only wants to eat healthy, but values reducing their environmental footprint as much as possible.

 

Example #4

The last example of restaurants taking a stance with their values and attitudes revolves around social justice and ethical consumerism.  With the growth of these movements, several restaurants have opened up shop with a purpose of promoting social change.  Some businesses – like The Battleground in Kent, OH – promise that portions of their beer sales will be used to combat climate change and promote universal healthcare.  Others – like The Roosevelt Coffeehouse in Columbus, OH – put some of their profits toward fighting hunger and human trafficking.  Across the U.S., many other restaurants are operating a pay-what-you-can model.  A risky business model to be sure, but one that communicates a powerful message with consumers.

Another restaurant focused on a unique social cause is Curt’s Cafe in Illinois.  In their two locations, they hire and educate student-trainees – many of whom have either been in the juvenile detention system, homeless, food insecure, or school dropouts.  Thus, customers of Curt’s Cafe know that, when they visit, they’re not only supporting a local business, but they’re helping at-risk youth avoid recidivism and find success in the community.

 

FAQs

How can you gather psychographics?

You can gather psychographic data several different ways:

• A focus group: fruitful for a guided discussion about a specific product or service among a carefully selected group of consumers
• Open-ended customer interviews: excellent for getting authentic, individual experiences and stories – as well as detailed information on potential barriers to engagement
• Customer surveys: great for getting more data on and verifying the results of focus groups and interviews
• Google Analytics: powerful tool for extracting demographic and psychographic information (check out the “Demographics Overview” feature)
• Social media research/analytics: these platforms have built-in analytics which can help you uncover the feelings, interest, and attitudes of
• Manual web research: visit forum sites and platforms like Reddit, Quora, and Discord for unfiltered access to interactions among your target audience (a lot of work, but well worth it!)

How can you implement psychographic data?

You’ll want to document all the insights you uncovered in your psychographic research.  Then, with a small team, identify a list of 3-6 insights that you think are actionable and aligned with your brand.  (Some customers might have said they value free food, but that doesn’t mean you should do it!)  After you have a solid list of actionable insights, transform them into initiatives that you share with your whole team.  Make sure you get total buy-in, so that your initiatives are successful.  Guests can tell when something is done halfheartedly or haphazardly.

Along with using psychographic research in building brand initiatives, you should use your findings to enhance your website, mobile app (if you have one) and marketing messaging.  Your guests online experience should be in harmony with the interests, lifestyle, values, and attitudes of your target market.  Also, the messaging you use in you email marketing, social media marketing, content marketing, and traditional advertising should incorporate the language, beliefs, desires, and pain points you unearthed in your psychographic research.

Does psychographics work?

Some studies have shown that psychographic targeting can make certain advertisements more persuasive. Ads crafted from psychographic insights resulted in 40% more clicks and 50% more purchases. The caveat was that these ads had to align with viewers’ existing levels of extraversion and openness.

While the publicly available data doesn’t conclusively prove the effectiveness of psychographics, it’s telling that it’s spread to so many industries – real estate, automotive, politics, healthcare, and on and on.  For what it’s worth the CMO of Subaru said their company targets customers based on their interests and passions (psychographics) rather than straight demographics.

What’s the future of psychographics?

As alluded to earlier, psychographics has spread across industries and doesn’t look to be slowing down any time soon.  The fields of data mining and behavioral psychology have exploded in the last few years – further fueling the use of psychographic insights in consumer marketing and beyond.  Specifically in the restaurant space, a number of psychographic segmentation firms have popped up.

However, If you want to develop a holistic branding strategy (psychographics included) for your restaurant, then book a call with us and we’ll connect you with one of Synergy’s marketing experts.

Quick service restaurants seem to appeal to a variety of target markets but there are two specific demographic groups that seem the most valuable to these types of foodservice establishments: mom and Millennials.

What or who are the “Millennials?” Generally speaking, Millennials are the group of individuals born in the 80’s and 90’s. This group of people account for 80 million of our population.

So what makes them so important to the quick serve industry? Since they don’t cook much, on average, Millennials visit fast food restaurants 12 times or more each month. They spend their income more on food than any other age generation.

This fact alone will not mean droves of them will be flocking to your restaurant. They are a very unique group who are ethnically diverse and expect creativity and innovation in a restaurant. They like novel and unusual items and ingredients. Additionally, they expect being listened to– in this respect, social media engagement is a must. Millennials expect to be valued.

Moms – the other huge target market—are looking for value, convenience, and health. There at 32 million moms in the U.S. and they are the primary decision maker when it comes to food. Aside from speed of service, health and value, moms value purchasing products that support a cause. Like Millennials, moms like to be socially engaged through the Internet via mobile devices – another reason why a social networking strategy should be in place for any quick serve restaurant.

Read more about these two target markets here.

Is Your Restaurant Set up for Quick Service?

So are you tapping into this market? Do you have a strategy in place to service these moms and Millennials? Is your restaurant set up to be discovered on Google Maps, Foursquare, and other search apps? Both of these target markets primarily use their cell phone to find fast service on the go.  In order to provide this service, do you have dedicated systems and service stations set up within your restaurant(s)? If you’d like professional assistance with this, please contact Synergy.

Going to a restaurant, picking out food, and eating it there is so 2019. Now, dining out is so much more than the food. It starts with research, online menus, deals and promotions and even ordering ahead. Now, dining out is a whole experience attached to technology, particularly apps. Restaurants are experimenting with new in-app programs to attract the post-lock-down world and offer further incentives to dine out.

One of the leaders in restaurant apps is McDonald’s. No surprise there. The “Golden Arches” crew has been at the forefront of technology for a while, offering coupons, deals, and free food through their app. The on-point creators of the McDonald’s app use culturally popular ideas and incorporate them into their promotions. According to Chewboom.com, McDonald’s took advantage of the Mercury retrograde this past May, a cosmic event popular in astrology. They offered a free sandwich with the addition of a small fry to any in-app order. To solidify the promotion, McDonald’s also teamed up with a tarot card reader and astrology expert to give a few lucky app users a free reading on TikTok. Not bad for a burger joint. This year, says Thrillist, they launched Camp McDonald’s, a virtual getaway stacked with promotions and live events daily.

Waiting at a restaurant is also a thing of the past. Lines, drive-thru’s, and contact altogether are becoming passe. Launched in February of this year, the Panera app offers contactless dine-in service, says Restaurant Dive. This means that customers can skip the register, order on the kiosk at the front of the restaurant and go straight to their seats; no lines, no contact, no waiting. Diners will get an alert on their phone when their food is ready. This is especially helpful during the 6-feet-apart, Covid world. Panera is also known for its unlimited coffee program, originally called the MyPanera+Coffee, which, for a monthly fee, offers all the hot beverages you could want. According to Today, Panera upgraded their program, renamed it the Unlimited Sips Club, and includes their Charged Lemonade, tea, coffee, and  fountain drinks.

 

 

App Trends: Real Case Studies

During the lockdown, many fast-food restaurants flourished because of the limited contact, but also because of loyalty. Places like Chipotle, Panera, and Taco Bell have loyalty programs through their app, rewarding frequent customers with incentives to come back, says NACS (National Association of Convenience Stores). The Taco Lover’s Pass, which was available earlier in the year, offered a subscription for tacos. Customers who signed up for $10 a month on the restaurant app received a taco a day for 30 days.  According to the website, the data showed that 20% of the loyalty program subscribers renewed their subscription after trying it.

Dining out has always been fun, and it’s become second nature to check our phones before entering a restaurant, either for coupons, promos, or free sign-up bonuses. Restaurants like these have upped the game for dining out with their innovative apps, making individuality a collective experience. Whatever you want is something you can quickly get, maybe even for free.

Generation Z has disrupted many industries and stumped advertisers with their unusual preferences. This group of young people born between 1996 and 2012 has diverse wants and needs which should not be ignored. With the oldest ones in this group are now turning 26, the buying power of their generation increases considerably each year. Their desires will likely shape the future of the restaurant industry.

Here are a few clues about how to better serve this generation in the restaurant industry.

They Love Takeout and Delivery

The National Restaurant Industry’s 2022 State of the Restaurant Industry confirms that 85 percent of Generation Z uses third-party apps like GrubHub, DoorDash, or UberEats for takeout and delivery. These apps are known to take a cut of the profits, but by deciding not to offer your food through these platforms, you might be cutting Gen Z out entirely. When a member of Gen Z discovers a new spot, they’re likely to tell their friends about it, and they are also likely to visit you in person one day. So while you might lose out on service fees initially, you could be creating more loyal in-person customers down the line.

 

Reach Them with Social Media Marketing

Restaurant owners need to find the right social media platform to reach potential Gen Z customers. 71 percent of Generation Z is active on Instagram, making it the most popular social media channel. The runners-up are Snapchat and TikTok. Since Facebook is not as popular with this generation as with others, restaurants may want to diversify their social media marketing. Owners might want to tap into video content like Instagram Reels or TikTok; however, it’s important to remember to get your message across as quickly as possible. Researchers have found that the average marketing attention span of Gen Z is 8 seconds–that’s 4 seconds shorter than Millennials.

 

They’re into Trying New Things

Most diverse generation thus far. 22 percent of Gen Z has at least one immigrant parent.

According to a recent report, 90 percent of Gen Z would be willing to try something new. While earlier generations like Baby Boomers value nostalgia, Gen Z has been said to value uniqueness. Consider adding menu items that are a marriage of the two, like a pizza with a Vietnamese twist.

 

They Want to Like and Subscribe

First made famous by a few fast-casual leaders like Panera and sweetgreen, Gen Z is more curious about restaurant subscription programs than their elders. 80 percent of them say they’re willing to try a program where they prepay a certain amount for a slight discount at a restaurant they frequent. Offering a program like this could convince more members of Gen Z to become regulars at an establishment.

 

 

They Aren’t Big Drinkers (of Alcohol)

Gen Z, along with Millennials, has been notoriously bringing down alcohol sales. These generations tread lightly into addictive lifestyles–and are wary of losing control and tarnishing their reputation with photos and videos that could be posted to social media. If your restaurant emphasizes alcohol, it might be a good idea to supplement this part of the menu with nonalcoholic beer and mocktails.

 

Although they aren’t into alcohol, this generation does make up for it in their desire to drink other types of beverages. Gen Z appreciates a “third space” like Starbucks, where they can drink a coffee or coffee alternative and sit down with a laptop, not feeling pressured to order a meal. Restaurant owners can set up a part of their restaurant conducive to this, like a small bar going along an exterior window.

 

While it’s important to honor traditions at your restaurant, it’s also essential to keep an eye on the future. By shifting your marketing plan to be more inclusive of Gen Z, you will help guarantee that your establishment is here to stay.

Going out to eat can be a unique form of entertainment in and of itself. The sights, smells, and sounds create a personal experience we have come to depend on for leisure activity. At least we did until March of 2020.

Restaurants reinvented themselves when the COVID-19 pandemic hit. The brick-and-mortar eating out experience became compromised while drive-thru, delivery service, and online ordering became the new boom. Business didn’t stop. It just changed, and restaurants had to quickly implement the needed technology to keep up.

 

 

Omnichannel Marketing for Restaurants

Before the pandemic, restaurant loyalty programs were typically card-based and coupon-focused. These programs were single channeled and acted more like fun games than serious business features. When the pandemic hit, touchpoints to achieve customer satisfaction changed to assure restaurant loyalty in an uncertain landscape. One approach that restaurant owners implemented was called multichannel marketing. This system soon evolved into Omnichannel marketing, an automated marketing strategy that creates a brand’s presence across multiple online and offline channels. Using a website, mobile app, social media, email, SMS call center and store-level events, Omnichannel has seen a 250% increase in customer engagement and a 90% customer retention rate. Most important is Omnichannel’s positive and seamless customer experience, which keeps them returning.

 

Purchasing Behaviors

Investing in the importance of being at the top of customers’ minds became paramount to restaurant owners seeking loyal customers in the last two years. Owners had to be fluid in their approach to remain competitive. One way to achieve this was by mapping customers’ purchasing behaviors to create a purchasing journey. Offering rewards that matter to customers, such as secret menu items and exclusive dining options, proved to be one way to provide personalized experiences for specific customer profiles which, ironically, does not cost anything beyond the data mining. The future of loyalty programs exists in this space. It is unique, engaging, and customer-focused.

 

Venues

While data shows that 68% of consumers are more likely to purchase takeout from a restaurant now than before the pandemic, every restaurant is different. What assures loyalty to one may be different for the next. Aside from formal, digitally based loyalty programs, restaurant-goers have come to love outdoor venues. Greenhouse, garden areas, or other unique open-air settings are a sure draw for customer return. In addition, pure foods such as vegan choices and plant-based items keep customers coming back.

Although chain restaurants often have formal rewards programs, consumers can be influenced to choose one restaurant over another if it offers a pleasing and safe venue, comfort foods, or health-conscious dishes.

 

A Well-Trained Staff

All of these strategies won’t work unless you have a well-trained staff—one who will keep up with checklists, processes, and can maneuver when things get a bit hectic. That’s what Synergy Sync aims to do—helping easily train staff (even at multi-location restaurants) so they feel confident and can take ownership in their roles. A knowledgeable staff creates happy guests! Happy customers creates loyalty!

 

If you operate a restaurant today, you NEED to be on social media. There are tons of popular social platforms online today, and they all provide you with a way to reach more guests (often for free)! Social media marketing can benefit your business, but only if you use it appropriately.

Have a Clear Brand Voice

Your restaurant has a distinct vibe: upscale, casual, romantic, family-friendly. The key to successful marketing is finding the guests who connect with your restaurant’s style, and social media gives you the freedom and the platform to do that.

Make sure you have a clear and consistent voice in all your videos, photo captions, and posts on social media. This consistency will help you and your ideal customers find each other over the world wide web.

Interact with Customers

While print ads, TV spots, social media, and other forms of marketing can help you reach a broad customer base, they don’t have the sticking power of great word of mouth. In fact, word of mouth is still the go-to method for choosing a restaurant for 53% of today’s diners!

Of course, you can only generate great word of mouth if you have GREAT CUSTOMER SERVICE.

And now, thanks to social media, you can provide customer service to guests even after they’ve left your dining room. If they leave a good review online, you can thank them for their patronage; you can reach out directly and make things right if they give a bad review. Responding to reviews is a great way to show guests that you care about their experience in your restaurant.

 

List Your Restaurant Address in Your Bio

One of the amazing things about social media is the reach a single post can have. If something “goes viral,” it’s often seen by people across the country or even worldwide! One great post could mean tons of potential new guests for your restaurant… so make sure they know where to find you!

Always include your contact information on your social media pages (ideally in the biography section). Make sure customers can easily locate your address, phone number, and website so they can move through the sales funnel from social media follower to regular diner!

Take Pictures of the Food!

This is one of the most important MUSTS for restaurant owners on social media: show everyone what you make! Pictures can make or break your social media presence AND your diners’ interests. More and more people are using sites like Instagram to decide where to eat, and your photos play a significant role in shaping their decisions.

 

Take your time and get beautiful, appetizing photos of your menu items. Stage them well, use good lighting, and really showcase your offerings. These tips will help you catch more eyeballs and garner more attention, which will inevitably help you fill your dining room every night.

By Mike Walls, Operations Consultant & Beverage Certified Cicerone

In a recent conversation with our friends at RASI, an accounting system, and educational service, we discussed the perils of implementing new technology without firmly establishing the fundamentals in systems, training, and operations to put good data into the system to get the results you need.

Many technology platforms can help to build those standards and best practices, and they’re getting better at it all the time, but there are a few issues that we repeatedly see in the field:

1. Wobble: Wobble occurs during growth periods, periods of high turnover, or in businesses with “telephone training” where information is passed from one person to the next without referencing source material or with no system of skills validation and accountability. Over time, the “why” is forgotten, steps are skipped, and what was once a firmly planted brand or practice begins to wobble from its foundation, which turns into more of a hindrance than a solution.
2. Over-reliance on technology: Sometimes, we rely too heavily on our technology solution or process and not enough on the people executing tasks. People + Process = Success. Both are needed, and one doesn’t work without the other. Try to think of your technology resource as 50% of the solution and your team as the other 50%. Train the team, tell them why, and hold them accountable. Make sure they have the tools to exceed your expectations. Refresh training regularly and make sure that no key players are left behind.

 

 

Many symptoms can be treated by addressing the underlying problem that is a lack of training. This should be the top priority of any growth-oriented company. New technology can help get you where you want to go, but to make the solutions long-term, you need to remember the other half of the equation and continuously work to keep your team empowered.

By: Rita Imerson – Operations & Training Consultant

 

We hear it time and time again…how do you retain the best employees with the industry being so competitive, compensation constantly increasing, and when the current workforce places a lower value on loyalty and job longevity?

 

The answer is complex, and there is no simple solution. Good hiring practices that truly target the Gen Z workforce, strong onboarding and training with clear expectations and management engagement, fair practices, and a positive work culture all help create an environment in which team members feel valued and enjoy working.

 

 

We all know scheduling and communication apps and checklist technology improve and simplify the workplace for team members, but now technology is stepping into employee perks.

 

With Onaroll, your team members are rewarded with points for the performance goals you set. Goals can include the speed of service, upsells, and on-time arrival. Additionally, you can reward tenure and keep your team invested in staying put working for you long term. Each week team members are given tickets with BIG winning opportunities…the longer they stay in the job, the more chances they have to win.

 

This technology integrates with your POS to award points automatically without any work for you or your management team. It is SMS-based, so there is no app or downloads, or enrollment.

 

If your leaders are looking for a simple way to improve productivity and boost morale, this may be just the answer. It’s an easy to implement option that offers a fun way for your team members to feel rewarded and valued.

By: Shane O’Brien, Culinary Consultant

 

Expanding your customer contact is a tried and tested way of not helping your business but responding to a pre and post-Covid landscape’s growing demand.

How can you be more accessible with changing customer behavior?

Church’s Chicken has developed a method with eye-popping results. 85% of their guests interact with the company using their mobile device, so they poured resources into beefing up their digital storefront.

 

“A new website, channel strategy, and mobile welcomer (location finder) were rolled out to help guests go from first impression to desired action within three clicks.”

Return business is an elusive dynamic with many factors affecting why guests return. But having an appealing, fun, and ultimately easy-to-use digital experience can vastly improve your chances. Dictating the ease of use within digital interactions is highly effective at driving return business.

In addition to their freshly overhauled web experience, Church’s took steps to develop their mobile app and email platform.

Along with a loyalty program upgrade, Church’s “launched a new customer database in order to create more personalized and dynamic communications.”

Important to note that in addition to all of the benefits that Church’s saw with their digital renaissance, “Church’s saw an uptick in adoption among GenZ and Millennial audiences, particularly following the launch of the new Church’s Chicken Sandwich.”

Digital development can help capture existing guest’s appreciation, but a large portion of the market is already fluent in social media and virtual business experiences, so it’s a win-win.