Thursday, 11th January, 2018
Millennials spending power remains strong as they continue to influence eating OOH
The spending power of millennials looks set to continue to positively impact the UK food and beverage market. A new study has revealed that they are twice as likely to spend more on eating out over the next 12 months compared to other generations.
In a new report from auditing firm RSM of 2,000 consumers, 61% of millennials will spend on takeaways and food deliveries in 2018 and 40% of Generation X will continue to shell out for fast food. Additionally just 23% of consumers surveyed have revealed that they will spend less on food and drink out of home and a huge 59% will spend the same amount as they did in 2017.
Interestingly, the report also highlights that 27% of Millennials are willing to pay more than a 10% premium for Fairtrade and ethical produce. With Millennials being some of the most environmentally and ethically aware consumers RSM say it is important to take steps to meet their expectations.
And in terms of tech, 25% of millennials have said they are willing to pay more than a 10% premium for tech-enabled time savings. In an experience-led world a focus on quality, not quantity, is key. Single-item menus, multisensory experiences or new cuisines will help boost footfall in restaurants and bars
The report says; “With consumer support for the high street still strong, the hospitality industry must be careful to not overlook their bricks and mortar offerings.
“While digital is important, it must not become a distraction. Employing great people who can interact with shoppers and deliver a memorable brand experience is just as important as optimising the online customer journey.”
Consumers also prefer to walk in to restaurants to make a reservation or dine there and then, say RSM. While booking online or over the telephone is considered more convenient, consumers say visiting a bar or restaurant in-person creates a better experience. Increasing consumer demand to talk to staff about seating, menus and dietary requirements, will continue to drive this trend.
Online reviews exert an enormous influence on buying decisions. The rise of consumer-orientated sites like TripAdvisor and Trustpilot means shoppers are now just as likely to act on recommendations from strangers across the world as those from their closest friends and family.
The report specifies that 81% look at reviews before purchase, 72% will change their plans if they read or hear a bad review, 68% say friends and family influence their purchase decisions and 51% will not go somewhere if there are no reviews.
“Looking ahead, it will not just be strangers influencing our purchasing habits. Consumers will increasingly act on the suggestions from in-home virtual assistants.
“As machines become more intelligent, they’ll learn our buying desires and needs with razor-sharp accuracy.”