Headlines often highlight how Gen Z and millennials are reshaping markets, pushing brands to find new ways to capture their attention. To do this, brands must actively engage with consumers and listen to their evolving preferences. Quick-service restaurants are feeling the impact of these shifts, as younger consumers make up more and more of their customer base. While understanding their expectations is vital for success, operators must also balance the needs of various demographics to remain inclusive and competitive
A recent Intouch Insight survey highlights key factors and insights from various demographics, revealing both strengths and areas for improvement in the restaurant industry. The survey also uncovers which systems are most effective as operators strive to enhance their digital presence while optimizing their existing physical location
“The shift to digital we’re seeing with younger demographics and technology is majorly playing into innovations,” says Sarah Beckett, vice president of sales and marketing at Intouch Insight. “It’s necessary to understand and address the needs across all demographics within one footprint.”
Nearly 62 percent of respondents aged 18-24 said the technology available in a restaurant influences their decision to return to a location. This emphasis placed on technology can be seen with Gen Z and millennials but drops off with older generations—45 and up. This means operators need to balance technology offered to younger consumers and measure what is currently working for older demographics, with tools such as surveys, mystery shopping, and data insights.
It is obvious that digitally enhanced experiences from pick-up and ordering, to value and brand communication, are not going anywhere. However, discovering the best ways to communicate with key audiences is necessary to maintain a competitive advantage within the quick-service industry. Oftentimes, quick-service restaurants may have systems in place to offer modern experiences, like contactless delivery and pick-up, but fail to communicate it effectively to consumers. This can lead to missed sales and new customer opportunities.
“Nearly 70 percent of consumers aged 18–24 say contactless pick-up is important for their experience,” Beckett says. “Restaurants must communicate clearly that they offer these options, whether through signage, apps, or SMS messaging.”
According to Intouch Insight, almost twice as many consumers aged 18–24 find it easier to customize their meals online. Digital menu boards, kiosks, and AI-enhanced drive-thrus are all channels offering the electronic experience modern customers look for.
To effectively reach their consumers, operators need to provide the right digital channels and experiences, such as digital menu boards, kiosks, and AI-enhanced drive-thrus
Digital channels drive a huge portion of brand revenue, but many restaurants don’t have the physical footprint to keep up with the increased traffic. “In some cases, the speed and efficiency of ordering ahead can be compromised,” Beckett says. To ensure operators invest in the correct digital experiences they must listen to their customers—no two communities want the same thing. Partnering with companies like Intouch Insight can help fill in the gaps by providing data and answers through mystery shopping programs, surveys, and audits to enable operators to connect and understand their customers, regardless of age.
A great strategy is to give incentives to encourage consumers to sign up for loyalty programs, especially as more brands offer exclusive app deals and consumers become more particular about what they are willing to commit to. “You need to give customers a reason to download your app and sign up for the loyalty program,” Beckett says. “You need to make that process as seamless and intuitive as possible.”
At the end of the day, technology should enhance the core propositions customers will always be interested in, quality of food, friendliness of staff, value, and speed. While the majority of consumers 18–24 said available technology would influence their decisions to return to a location, the majority of consumers 25+ reported that available technology does not influence whether they return to a location. This means operators have a complicated decision if they do not listen to their customers’ needs and measure the success of the new strategy.
In an ever-evolving market, quick-service restaurants must strike a delicate balance between embracing digital advancements and meeting the diverse needs of their customer base. While younger generations prioritize technology and contactless experiences, it’s equally important to cater to older demographics seeking traditional conveniences.
By listening to the desires of all age groups and making strategic adjustments, operators can maintain a competitive edge and ensure long-term success in an online world. “Restaurants need to understand what their customers want and deliver on that brand promises,” Beckett says. “It’s about creating value, loyalty, and a personal connection through digital.”
Click here to learn how Intouch Insight can help measure and improve brands’ customer experiences.
By Ya’el McLoud
