Kiosk Solutions Feb-Mar 2020 | Page 26

make way for the millenial make way for the millenial Move Over Baby Boomer Make Way for the Millenial How changing consumer behaviour and soaring costs are forcing fast casual operators to rethink their digital and operations strategies. By www.qikserve.com The fast-casual sector, like many other areas of the hospitality industry, has been faced with multiple challenges in recent years. Recovery from the recession, minimum wage rises, increasing ground rent and changing consumer preferences and behaviours have forced operators to rethink not just their digital strategies but also their operations, especially around fulfilment. We take a deeper dive into the challenges of the fast-casual sector and how digital innovation can help not just minimise their impact, but proactively drive success. Move over baby boomers, make way for the millennials Millennials are the largest generational cohort in history boasting a membership of 79.8million and are expected to have the greatest spending power by 2020. They’re also a bit of a conundrum Traditional marketing approaches don’t seem to be effective on this group that has proven to have wildly differing needs and purchasing patterns. And although some research confirms their wealth and spending power, there’s also evidence to suggest they’re a demographic of extremes. 26 KIOSK solutions Millennials (24-39 in 2020) as well as a portion of the older iGen (8-23 in 2020), more than any other generation, have displayed rapidly changing behaviour when it comes to dining. Fewer of them are eating out. This change of behaviour has been blamed on a number of different factors. People have less time to go out and enjoy meals, they have less money to spend on dining and, interestingly, because entertainment has moved into the home. Comfort food Technology is now allowing people to socialise, play games, interact, purchase and fulfil requests all from the comfort of their couch, bed, bath or wherever they might find themselves at home. Some argue that this preference to stay in, coupled with convenience, has fuelled the delivery market, putting companies like Deliveroo, Uber Eats and Just Eat on the map. Moreover, when millennials do go out, they’re starting to expect more from their dining experience, often powered by technology. For example, 60% of millennials said they wanted to see restaurants use technology to make the process of ordering and paying for meals KIOSK solutions 27