In the last few years, millennials have overtaken baby boomers to become the largest demographic in the United States. What this means is that millennials have claimed a fair share of the purchasing power once held by baby boomers. The sheer volume of this purchasing power, estimated at about $1.4 trillion dollars, means that more attention needs to be paid to how those millennials choose to spend their money.
Not surprisingly, millennials have been changing the way a lot of industries operate. Some of these are teetering on the edge while others have embraced the changes. The fast food industry is but one of those industries that has been forced to adapt to the wants and needs of its millennial clientele. The restaurant business is already a difficult one. With these new needs thrown into the mix, the industry has found itself in constant flux. Here are three ways that millennials are driving fast food innovation.
Eating for health – Millennials often decry the limited options available at the restaurants they frequent. Many in this demographic desire healthier fare than just burgers and fries. Millennials have a lot of concern about the fat and sugar content of their foods. In fact, research has shown that millennials are willing to spend more on food they perceive as healthier and of higher quality. This comes as no surprise to brands like Panera that have spent a lot of money creating healthier options. What does this mean for restaurants today? By all means, leave burgers and fries on the menu, but any menu that doesn’t include a fair number of healthy options will fail to attract millennial customers.
Millennials care about ingredients – One major change brought about by millennial's habits is the emphasis placed on every day ingredients. Whether this is meat, produce, dairy products or even bread, millennials have strong opinions on food. Firstly, in an effort to eliminate all unnecessary pesticides from their food, they prefer to eat organic. They also insist on locally-sourced foods since these tend to be fresher while also reducing fossil fuel requirements for transporting meat and produce long distances. Millennials also want meat that is ethically slaughtered and devoid of unnecessary antibiotics. These requirements mean that not only do fast food restaurants need to go the extra mile in procuring these types of ingredients, but that future marketing campaigns must include this type of information.
Customization – Millennials aren’t satisfied with eating the same old, boring sandwich everyone else is eating. They want their meals customized to their particular tastes. While some of this is due simply to different tastes, much of it is dictated by differing dietary requirements and allergies. Understandably, this will be a huge change for restaurants that have become accustomed to producing meals in an assembly line fashion. Yet, a brand that makes it a hassle for guests to customize their orders may risk losing the millennial customers they crave.
No industry will remain untouched with the growth of the millennial demographic. While fast food restaurants may find themselves with their backs against the wall, their future can be made more certain as they learn to adapt their menus for a new, healthier, more informed clientele.
