Generation Z, comprising consumers aged 12 to 27, is emerging as a crucial demographic for the economic future, with a projected spending power of $12 trillion by 2030. However, brand loyalty among these young people represents a significant challenge for companies in the HORECA sector, an acronym for Hotels, Restaurants and Cafeterias, which is used to refer to the food service industry.
Unlike their predecessors, Generation Z does not display the same brand loyalty, as reflected in recent surveys that highlight a decline in affinity towards some of the most recognized chains.
Piper Sandler’s semi-annual “Taking Stock With Teens” report revealed that while Chick-fil-A and McDonald’s remain the favorite brands of teens, their popularity has declined by 4% and 1%, respectively. On the other hand, preference for Starbucks also fell by 6%, while Dunkin’ saw a decline of 2%. These figures are indicative of a change in costa rica telegram lead consumption habits of Generation Z, which has increased its spending by 6% compared to the previous year, suggesting that these young people are exploring more options in the market.
The data also shows that Generation Z has a lower degree of loyalty compared to other generations.
adxs
PuroMarketing Podcasts
Listen to all our podcasts. Also available on Spotify, Ivoox and Youtube
puromarketing.com
In the quick-service segment, only 33% of Gen Z consumers reported an intent to return to a restaurant, compared to 37% of Baby Boomers. This trend is echoed in other restaurant segments, where return intent and recommendation figures drop significantly for Gen Z. This phenomenon can be attributed to several factors, one of the most prominent being the prevalence of third-party delivery platforms. These types of services tend to commoditize culinary experiences, which dilutes the emotional connection consumers have with brands.
Additionally, Gen Z faces a tough economic environment, with housing costs up 31% and health insurance costs up 46% compared to Millennials. This economic reality has transformed fast food into a “luxury,” which can also erode brand loyalty. Despite these challenges, the lack of loyalty can be interpreted as an opportunity for restaurants. According to a report by Morning Consult, this generation allocates a significant portion of their disposable income to eating out and expresses a desire to increase their restaurant outings.