Understanding
Gen Z's ‘Menu Anxiety'
Gen Z
reportedly suffers from "menu anxiety," and some young people are scared to
order their own food at restaurants, according to a study by Prezzo Italian
Restaurant.
The idea of
paralyzing menu anxiety may be something of a misnomer; as a recent story from Business
Insider points out that menu anxiety may have largely been triggered by the
cost of meals; food inflation has receded from where it was a year ago, but not
by that much.
Instead, the
performative aspect of today's high-tech, instantly gratified consumer
lifestyle may be more to blame, as the study of 2,000 British individuals
illustrates. Over 400 years ago, Shakespeare wrote, "All the world's a stage /
And all the men and women merely players" in As You Like It, and for the
generation that grew up with chirping mobile phones in their pockets and the
specter of social media haunting the most formative years of their lives, those
words hold renewed import for all the influencers, followers, and businesses
who benefit – or bend – under their collective eyes (and likes, and shares, and
upvotes).
"External
pressures have a significant impact on how Gen Z interacts with food and
they're more likely than other generations to feel pressure to eat a certain
way to show that they're healthy (60%), care about the environment (51%) and
care about certain political issues (48%)," said Jimmy Szczepanek,
managing director of food at Ketchum, to The Food Institute.
Szczepanek
added that as many as 25% of Gen Z feel pressure about their food choices from
people on social media whom they've never met – nor have any real business with
– in real life. Over 66% feel like their eating patterns are wrong, and "[Gen
Z] is more likely than any other generation to attribute negative emotions and
less likely to attribute positive emotions to food."
Gen Z
& Food's Relationship Status: It's Complicated
"The first
thing to remember is that Gen Z is the first fully digital generation," said Cedar
Roach, Gen Z communication expert at Arvo PR & Executive
Communications (and a member of Gen Z herself).
"Gen Z deals
with constant information overload since we are constantly fed new
information," she added. "As a result, Gen Z suffers from what's been coined as
‘decision fatigue,' with about 48% feeling anxious most of the time as a
result. So ‘menu anxiety' is simply the manifestation of Gen Z's overall
‘decision fatigue.'"
To help
combat this, Roach recommends that restaurants limit menu choices, use concise
menu descriptions, and provide visual engagement; "As a digital generation, Gen
Z has a notoriously low attention span, so having visually engaging menus is
important to keep [them] engaged and limit ‘menu anxiety.'"
"Some
consumers may like to browse, but more often they demand relevancy," said Ori
Bauer, CEO of Dynamic Yield, a data personalization company
previously owned by McDonald's and now operated by Mastercard.
"With
overwhelming amounts of digital noise and stiff competition for wallet share,
consumers are more likely to engage with a brand that delivers relevant,
convenient, and engaging experiences across channels," Bauer added.
To further
frame this notion, brand strategist and founder of Motif Brands Reilly
Newman referred to a well-known player in the American foodscape – In-N-Out
Burger – in his comments to The Food Institute.
"Consider
the In-N-Out menu, where options are simply numbered #1, #2, or #3, compared to
a complex French restaurant where the decision-maker might struggle to
pronounce the names of the dishes," he said. "Even if an elevated experience is
desired, it can still create a rather frustrating experience for the consumer."
Clear
Communication is Key
Chris
Schneider has over
two decades of hospitality experience and is creator of The Bar Business
Coach, a restaurant consultancy. Schneider said much of today's perceived
menu anxiety is really out of the control of operators, though training and
industry cues can help operators usher menu-torn patrons through their
offerings and offer a more enjoyable experience.
"While it is
impossible for a bar or restaurant to control the psychological state of our
patrons, it is possible to provide an experience that minimizes friction points
that make the guests nervous," he told FI. "The main two areas where we
can improve the guest experience are in our menu design and standards of
service.
"Smaller,
simpler, one- or two-page menus make it much easier for a guest to see all the
available options at once," he added, noting that menus need to be well
organized into clear, concise categories. He also recommended not getting too
cute with cuisine or drink names that fail to convey what they are – while it
can be enjoyable to have a menu named after a different area of the
neighborhood, for example, or after local musicians, authors, or celebrities,
"those names do nothing to convey the dish to your guests."
"We need to
have conversations with our guests, ask them if they have questions about the
menu, and give them time to decide, not rush them into a quick choice that will
hurt their overall experience just so a table can be turned a few minutes
quicker," he concluded, and those conversations need to be driven by deliberate
training to help a bar or restaurant's staff guide patrons through the menu.
Despite the
contemporary thrill of being offered what you know you'll enjoy, Newman also
points out one aspect often neglected by restaurant and retail technology –
spontaneity.
"If all
loyalty programs and data focus on delivering a customized experience based on
my past interactions, then the predictive error of my future choices becomes
that of randomness," he explained.
"Humans are
irrational creatures, and past performance never guarantees future results. By
allowing individuals to browse and explore, we encourage a more curious
experience that adds value...when we browse and discover, there is a sense of
pride in our choices. Allowing this freedom empowers the consumer to discover a
new favorite, or perhaps the simple pleasure of autonomy is enough to entice
them to return."
Gen Z can
certainly be forgiven for merely bearing the technological and social
circumstances of the world they've inherited; every generation before and since
has endured the same. "What is past is prologue," Shakespeare warned in The
Tempest, and at the rate technology and the food/bev industry continues to
evolve, menu anxiety may be yet another passing blip on the map of today's
culture and formidable foodscape – that is, until Gen Alpha comes of age.
Uneasy lies
the head that wears a crown, after all – especially in today's economy. Food Institute Focus
Preparing
for Launch: CosMc's and the Next Wave of Beverage Chains
Much has
been made of McDonald's CosMc's concept in the months since its
debut. Social media is rife with brand-happy consumers checking it out for the
first time, documenting their journeys via TikTok and YouTube and allowing
themselves the rare opportunity to be surprised in the QSR world.
As the
calendar turns to 2024 – and as McDonald's targets the likes of Starbucks,
Caribou Coffee, Panera, and other afternoon daypart and
snack/bev-forward establishments in its galactic crosshairs – other competitors
are vying for market share, trying to wrest precious dollars away from the
Golden Arches and into their own coffee-stained coffers.
The Food
Institute recently sat down with Sam Vise, CEO at Optimum Retailing,
to discuss the emergent CosMcVerse and today's QSR foodscape.
The
Grimace Shake was one of the top Google searches all year, helped fuel
McDonald's Q3 numbers, and was a marketing boon for the Golden Arches. Is this
return to previous brand ambassadors a passing fad or a way forward?
CosMc's is
playing into the nostalgia theme that McDonald's has been teasing all year with
the Grimace Shake and the re-introduction of the Nug Buddies. Even looking at
the drive-thru-only style of service, it's reminiscent of carhop service
popularized in the 50s when servers would rollerskate food out. McDonald's is
bringing out a lot of historical themes in its marketing strategy and it's a
brilliant way to revitalize the brand to a new audience.
McDonald's
is calling CosMc's a "beverage-forward" establishment for a quick bite or
pick-me-up. Do you see this as a viable competitor to Starbucks and other
coffee shops?
CosMc's will
be a viable competitor to beverage shops with comparable price points and
service such as Dunkin' Donuts and specialty beverage shops, which are
growing in popularity. The soda industry isn't as strong as it used to be,
prompting brands to create alternative beverages and shops that are still fun
to drink – bubble tea shops, for example.
CosMc's has
strong potential to take a share of customers looking to enjoy a refreshing,
sweet beverage, especially given its ability to offer value and convenience
among competitors. Despite talk of CosMc's competing with Starbucks, CosMc's
pricing and business model structure are very different, which makes them
unlikely competitors in the long-run.
We also
read recently that Taco Bell is debuting two frozen beverage menu
options called Chillers. Are these direct challenges to one another as both
brands plan for explosive growth in the next few years?
The
popularity of iced coffees and beverages overall are increasing and QSR brands
are adapting their offerings in response to the change. Cold beverages made up
75 percent of Starbucks's total drink sales in the company's fiscal
third-quarter results, which is telling about consumers' preferences for cold
drinks. Gen Z is drinking more cold beverages and making less coffee at home
compared to previous generations. Brands are focused on what's popular now,
which is cold and enticing-looking beverages. While the release of Taco Bell's
new Chiller may not be a direct response to CosMc's, the beverage industry is
changing.
What can
Optimum Retailing tell us about the Illinois and Texas sites? How do you see
those differing?
Being that
CosMc's Illinois location is a pilot site, it's hard to say exactly how the
Texas locations will look. McDonald's leadership will keep a close eye on
what's working during the trial phase and make adjustments based on successes
and failures. Their purpose in choosing Texas is likely because the region is
so different from Illinois; the format and menu offerings will probably be
identical initially to see how Texas-based customers respond, and McDonald's
might experiment with localization further down the line when the baseline
concept proves to be successful.
The
average American store is shrinking; many fast-food restaurants are smaller and
leaning on digital orders, delivery, and pickup instead of sit-down, and
consumers are more brand-agnostic than ever. Where will CosMc's fit on this
spectrum between inviting people into one of the most familiar brands in the
world, and catering to today's convenience- and value-oriented consumer?
McDonald's
is creating an environment that is experience-forward, convenient, and fits
into the lifestyle needs of modern consumers. The concept has bold, fun
elements that create memorable experiences, all while being quick and
convenient to visit. We're seeing people move away from strictly dining in at
restaurants, and many brands are embracing the "phygital" experience of
blending in-person interaction with digital touchpoints. McDonald's is noting
these shifts in consumer behavior and creating a separate, forward-looking
brand that is meeting diners where they are.
Do you
see any other market responses from McDonald's competitors, or is it too early
in the game for that?
McDonald's
competitors are paying attention and will likely introduce variations of their
own creative concepts. Competitors probably won't mimic CosMc's strategy
directly, but brands will be thinking strategically about store formatting and
menu offerings. QSR brands have already been innovating tremendously this year
alone when it comes to store formats and in the drive-thru. Chick-fil-A is
piloting its drive-thru only locations in 2024 and Taco Bell is focused on
cantina and digital-forward location expansion, to name a few. CosMc's is
another example of what strategic brands that know their customers' needs and
preferences are doing to adapt. Competitors who want to stay relevant will
follow suit.
Does
anything else bear mentioning McDonald's, CosMc's, the snacking/coffee crowd,
and what's in store next in this wild sector of restaurant/foodbev?
For CosMc's
to be successful with this concept, it's important McDonald's is willing to
pivot to support customers' needs. They're starting off with big, bold
branding, but it'll be critical for them to carefully assess the market
response early on and make changes based on that.
In terms of
the beverage industry overall, this is a very smart play for McDonald's and
other brands will follow. Cold drinks overall don't travel well so by offering
them, brands are forcing consumers to come to the restaurants and drink them
soon afterward. Restaurants benefit more by getting consumers in-store, but
third-party delivery apps and an increased standard of convenience have made
that more difficult. Offering cold, quick service and fun beverages checks all
the boxes of what customers want – making it a win-win for both parties. Food Institute Focus
Global Cuisines, LTOs to Feature Prominently for Foodservice in 2024
The foodservice industry has endured its fair share of turbulence since the
pandemic, but where will things go for the industry in 2024?
Lizzy Freier, Director, Menu Research & Insights at Technomic,
joined The Food Institute Podcast to discuss how the industry fared
in 2023 and notable trends to watch for in the new year.
Foodservice Traffic and Consumer Behavior in 2023
Freier highlighted the challenging landscape for restaurants in 2023, with
a modest 1% improvement in consumer traffic among major U.S. chain restaurants.
The economic environment, plagued by inflation, significantly influenced consumer
behavior. This resulted in a shift where limited-service restaurants outperformed
full-service counterparts due to pricing dynamics.
Limited-service restaurants faced challenges as certain fast-casual outlets
raised prices higher than some casual dining establishments. Consumers responded
by being less inclined to substitute full-service occasions with quick-service
orders, leading to an overall decline in foodservice visits.
The number of consumers reporting no visits within the past week increased
to approximately 30%, reminiscent of the pandemic months.
The Evolution of Off-Premise Dining and Dayparts
The landscape for off-premise dining transformed in 2023. While third-party
delivery services witnessed a decline in weekday orders, the trend remained
stable for dine-in experiences. Consumers, reacting to the high prices of
third-party deliveries and additional costs for dining in, expressed a preference
for takeout and direct delivery, signaling a shift in consumer behavior patterns.
Dayparts also underwent notable changes. Breakfast and brunch occasions observed
a rise, presenting themselves as more affordable options for consumers. Conversely,
dinner became more of a planned and experiential event due to decreased spontaneous
visits. Consumers seemed to view dinner outings as occasions that required
planning due to the overall rise in prices across the industry.
The Rise of Global Cuisines and Limited Time Offers
A significant surge in limited-time offers (LTOs) characterized the foodservice
landscape in 2023, showcasing a 45% increase in launches over five years.
McDonald’s celebrity-backed meals and LTOs, including the BTS meal and the
Grimace Shake, utilized social media to generate hype and drive foot traffic.
Simultaneously, international cuisines like West African, Ethiopian, Caribbean,
and Middle Eastern flavors gained prominence. Independent and emerging chain
restaurants embraced these flavors, demonstrating an upward trend in menu
offerings that catered to diverse palates.
The 2024 Foodservice Outlook – Personalization, Customization & Authenticity
Anticipating trends for 2024, the focus will be on transparency and
authenticity in menu offerings. Menus are expected to become more granular,
highlighting ingredient varietals, origins, and influences to emphasize quality
and premiumization. This trend aligns with evolving consumer demand for genuine
experiences and ties into the rise of international cuisines.
In the coming year, personalized and customizable formats are expected to
gain traction, catering to consumers seeking diverse culinary experiences.
The ongoing shift in consumer preferences, the transformation of dayparts,
and the integration of global cuisines are poised to continue shaping the
landscape of the foodservice industry in 2024, fostering innovation and consumer
engagement. Food
Institute Focus