NRA Manage My Restaurant: Millennials changing definition of brand value for restaurant marketers

Jeff Fromm is EVP at ad agency Barkley, co-author of a new book “Marketing to Millennials”, founder of Sharelikebuy.com - aMillennial trends and emerging technologies conference - and editor of MillennialMarketing.com. NRA Members receive $100 off their registration to Sharelikebuy.com when using code NRA2013.

In the new Millennial-inspired Participation Economy, the old definition of brand value — the one that worked for decades — is dead.  Millennials don’t just want to buy your brand, they want to be a part of it. They’re looking for ways to participate.  And they want to understand why you do what you do not just what you want to sell.  As a result, the brand value equation has morphed to include participative benefits. This is key for tapping into Millennial passion — and therefore, Millennials’ dollars.Brand value for restaurant operators has more variables today than ever before.  Here’s a few that may be impacting your brand:

Food quality

You ain’t nothin’ if you don’t have great food – 60% of Millenials consider it the most important criterion for choosing a restaurant, according to a Barkley survey.  However, Millennial loyalty only goes so deep. From there, look at other important considerations such as good value for the money, order accuracy and key basics that are “price of admission” factors but rarely differentiating.

Unique Flavor Profiles

Millennials want affordable adventures, tasting and sampling.  Barkley’s research with The Boston Consulting Group and Service Management Group found that 77 percent of Millennials enjoy eating a variety of different ethnic cuisines, which gives restaurants ample opportunities for appealing to the Millennial palate.

This doesn’t apply only to exotic flavors. For example, Millennials love chicken wings – after all, the variety of different dipping sauces with every order is almost as exciting as the actual wing.

Transparency & Authenticity

According to Barkely’s research, Millenials place a high value on the transparency and authenticity of the restaurants they do business with. Chipotle and McDonald’s are two well-known brands that have focused on letting consumers know more about the food products and practices of their growers. Just recently, Chipotle added an Ingredients Statement to their online menu flagging which ingredients are local and organic, as well as those containing GMOs, hydrogenated oils and preservatives.

Learn more about the variables that are helping to define your brand at MillennialMarketing.com.

 

For more articles on industry best practices, visit the National Restaurant Association's Manage My Restaurant online resource center here.

Talkin' 'bout my generation

Meet the “millennials.” They care about where that chicken laid those eggs.

Millennial diners think beyond taste when spending their
restaurant dollars.

There is a new crop of customers in town and they are a demanding lot. These diners are socially conscious, environmentally aware and they appreciate a good meal—made from locally-sourced ingredients, of course. They may not be rich, but they dine out more than any other age group. Meet the “Millennials.”

Born roughly between 1978 and 1994, a member of the Millennial generation ranges between a high school senior about to head off to college to young professional, out of school with a career, just starting a family. Their parents and grandparents are Baby Boomers, 78 million of which will begin to retire in droves in the next 15 to 20 years.

While Millennials may not have a large amount of disposable income, they eat out far more than generations before them. They were raised on Chicken McNuggets and Subway sandwiches; restaurant meals after church on Sundays. Fifty years ago, for the average American, restaurants were for special occasions, maybe two or three times a year. Now, according to the National Restaurant Association, people under the age of 25 spend nearly 48 percent of their food budgets eating away from home.

Millennials care about more than just how the food tastes. They are seeking to patronize businesses that care about the world at large. Restaurants can attract these diners by honing in on three specific brand metrics*:

• Social responsibility-Is the restaurant's practices good for the environment? For its employees?
• Food quality-After taste is considered, a millennial diner will ask, Where is the food coming from? Is it local/sustainable? Is it organic? Were the animals treated in a humane way when they are alive? They gravitate to terms like grass-fed beef and cage-free eggs.
• Community involvement-Does the restaurant give back to the community? Are they involved with local charities?

All three of these things should be considered when trying to attract the Millennial diner. They are the future of restaurants—both its employees and its customers.

Meet the Millennials

There are many, many restaurants across the state incorporating these three principles already. We can’t go to a restaurant (from a neighborhood place to a chain) that isn’t touting local ingredients. This is something Louisiana has been doing well before it was trendy.

As for community service, restaurateurs are some of the most philanthropic people out there, always giving back to their communities. (Read stories on Leah Chase and Greg Reggio who were both recently honored nationally.) If these practices are publicized to Millennials, they will keep coming back.

*Brand metrics sourced from Chicago-based industry consultant Technomic.