Restaurants Marketing Strategies for Generation Z

What Does Gen Z mean?

Generation Z refers to the generation of people born between 1997 and 2012. This includes roughly 67 million people in the U.S., approximately 20% of its population. Individuals in Generation Z spend more time on their mobile devices texting, also known as short message service (SMS), than any other group. If a company wants to reach Generation Z with their advertising, the use of texts is the most effective form of advertisement. Most eateries offer meal ordering or delivery features with smartphone apps in response to the recent pandemic. However, companies have yet to discover the efficiency of incorporating SMS orders into their business structure.

Restaurants stand to benefit from accepting text orders. It is easy, cheap and quick. They reach and serve a bigger percentage of Gen Z customers, as it is their preferred way of doing business. The first businesses to adopt this method will reap the full benefits.

Difference Between Millennial and Gen Z

A Millennial refers to a generation of people born between 1980 and 1995. In the U.S., there are roughly 80 million Millennials. Millennials are slightly older than Gen Zs. They are in their late twenties and early thirties and their habits, preferences, needs and consumer behavior may slightly vary from that of Gen Zs.

The same way a company markets its products to Millennials may not be the most effective method to use when marketing to Millennials. A company that wants to market to Gen Z should research their characteristics and values and develop efficient strategies to use.

Gen Z Technology Trends

Consider hypothetical persons who are 18 years old and, like the majority of Gen Z, spend 2 to 4 hours each day talking with friends and family via SMS.

They find visiting a restaurant's website to order meals a bit odd given the extensive usage of SMS. Though utilizing a restaurant's mobile app is simple, they notice that after a few weeks, the program requests an update and login, slowing the ordering procedure. They find this irritating.

Many mobile applications do not enable them to order or pay, and they are concerned about security while submitting payment card information on many mobile apps for different eateries.

Most restaurants use apps for their online and delivery services. Some of these apps do not allow customers to change the order pickup time, and if they do, changing the time requires several steps, such as launching an app, inputting credentials, finding the previous order and then amending the order. It's just not user-friendly for digitally aware eaters.

Finally, many establishments accept meal orders through third-party applications. However, such applications do not provide all the menu items available for direct orders, and some do not allow for menu item personalization. Such an experience is unsatisfactory for both Gen Z users and the restaurant industry.

Most Popular Apps for Gen Z

Study shows that the use of SMS text messages is the most popular mode of communication among Gen Zs. It is cheap, fast and easy to use. It would be easy for restaurants to incorporate text messaging orders into their structure.

For example, if our hypothetical Gen Z subjects want to place an order from a favorite restaurant, they would text and a restaurant chatbot would respond and communicate with them. If they do not have a number for the restaurant, they can easily search it on the internet and text the number.

The restaurant's chatbot understands and interacts much like a restaurant employee would. The chatbot uses conversational artificial intelligence (AI) with powerful natural language models. The chatbot lists available food and recommends meal items that go well with the primary order. The system utilizes deep learning techniques to help the restaurant provide improved and personalized services to its customers.

The system allows for easy and intuitive procedures for customers to adjust the delivery time due to various unexpected occurrences. It treats customers like in-person people and remembers their names and past orders even when they use a different franchise.

Studies of Generation Z's online shopping behavior show they like to be acknowledged and engaged regarding their needs and preferences. The system will be able to deliver that and ensure improved customer satisfaction.

In the case that the system does not understand a customer’s orders, the system tells them to call the restaurant and offers them a discount for the inconvenience.

The system’s primary function is to ensure smooth transactions and improve customer experience. It records data, learns and comes up with better ways of handling various situations. The application is cost-effective, easy to use and enables restaurants to provide the best of services to their customers.

At the End

When customers purchase meals directly from restaurants, the businesses get more data on their customers such as names, phone numbers, emails and preferences. This allows restaurants to customize their communication, offers and discounts, resulting in increased customer satisfaction, visits, spending and loyalty.

SMS chatbots with text-to-order capabilities benefit both eateries and their customers. The easy and familiar SMS-based communication, along with ML- and AI-driven natural language interactions, draws new digitally aware visitors such as Gen Z, and increases the restaurant’s profits. Other hospitality and travel companies, such as ground transportation, airlines and hotels, also stand to benefit from text-to-order capabilities to book or amend current bookings for air tickets, vehicle rentals and hotel rooms.

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