Mintel at The Flavor Experience

Of the sessions I attended during the event, I found the presentation on “Generation Y” by Lisa Strick and Kara Nielsen of the Center for Culinary Development among the most interesting. Also called “Millennials”, the young people that make up the next generation could be an enormous opportunity for marketers. As Mintel has published in reports such as “Spending Power of the Teen Consumer,” the younger generation spends more today on dining out at restaurants and coffee shops. In their presentation, CCD supported their points with findings from both quantitative – of 1000 participants between the ages of 16-28 – and qualitative studies of representative US samples.

Lisa and Kara tried to help the audience understand some of intangibles involved in Gen Y – how they think, what they find appealing, and how restaurant operators can use these insights to attract this challenging demographic. Young people present a puzzle: they value uniqueness yet want to be part of the “in” crowd; they value personalization yet want ubiquitous brands like Apple and Nike; and they are frequently isolated yet constantly communicate (via text messaging, Twitter, IM’ing, Facebook, etc).

While brands like Nike have seemingly cracked the code (via NIKEiD), I’m not sure the Applebee’s of the world can say the same. Thus while restaurant chains may have the furthest to go, they may have much to gain. I found the following insights from CCD’s study especially relevant:

• Food is the glue that brings teens and twenty-somethings together,
• Gen Ys seek special flavors and dishes,
• Recommendations from peers exert great influence over their decisions,
• Menus must offer appetizers and entrees that Gen Ys can share in a group,
• Interacting with food and a sense of fun is important (but shouldn’t feel childish), and
• Healthy options have to be easy.

Because Gen Ys are a relatively untapped market, operators may be able to find a new source of revenue in tough times and simultaneously build brand loyalty in the next generation. In an interesting way, diversifying the target market to include Gen Ys marks an intersection of the challenging economy and the struggle to redefine a brand. I can’t imagine it’s as simple as introducing a few new dishes or putting out a series of edgy commercials. Further, Gen Y consumers are more media-savvy, discerning, and connected than any preceding generation.

From my perspective, if understanding the intangibles is the challenge to sell to Gen Y, maybe the solution lies in the intangibles operators have to offer. Restaurants offering free Wi-Fi, unique flavors (possibly available in low-risk portion sizes), settings that encourage socializing, and other options like “Build Your Own” dishes may find success in this new market.

ML

PS – Don’t forget the AC outlets. The more the better.