Viewpoint — September 2011
The Millennials are Coming, the Millennials are Coming!
Written by Bob Gershberg, Managing Partner/CEO Wray Executive Search
The millennials, the twentysomethings, a.k.a. the generation “Y”ers spent $73 billion dollars at foodservice establishments in 2010. They made over 13 billion of the 59 billion restaurant visits for dining or takeout according to the NPD Group. “Millennials will overtake Baby Boomers as the most sought after target for restaurateurs in the coming years,” says Bonnie Rigs, NPD restaurant industry analyst. We have finally gotten our arms around the fact that they communicate differently, now we have to figure out what they want to eat, when and how often. It seems like only yesterday when we made their last tuition payment.
At 52 million strong, the Millennials, ages 18 to 29 unlike other generations will continue to grow in number due to immigration. What motivates and satisfies them will be top of mind for the industry. The report indicates they snack at twice the rate of the balance of the population. Half of the money they spend in foodservice establishments is for takeout. Although they place a premium on healthful food items, they remain partial to burgers, fries, pizza and Mexican fare.
Millennials are more diverse than previous generations. Only 61 percent of Millennials are white, compared with 71 percent for adults 30 and older. Among Millennials, 14 percent are black, compared with 11 percent for older adults, while 19 percent are Hispanic, compared with 12 percent of older Americans.
Millennials are likely to say their food choices are motivated by cravings, cost control and minimal preparation. The current unemployment/underemployment rate in this group is estimated at twice that of the general population so the cost conscious bias is of no surprise. And watching them grow up with an X Box controller in their hands surely helps us understand the minimal preparation piece.
The Millennials will become a more formidable consumer force than their baby boomer parents. One thing is certain - they want variety and value – we had better give it to them!
All the best,
Bob Gershberg |CEO|Managing Partner|
bob.gershberg@wraysearch.com
(888) 875-9993 ext 102
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