How the fast food industry should cater to Millennial customers
Millennials tend to frown over the traditional fast food chains and opt for fast casual brands such as Chipotle, Au Bon Pain, Five Guys Burgers and Panera Bread. Based on a study by Brand Keys, these consumers place a heavy emphasis on high- quality ingredients, trustworthiness and interior design. The following tool kit will detail five initiatives that can help drive greater affinity from Millennials and help shift the purchase behaviour balance within the fast food segment. http://www.sld.com
1. August | 2015
Tool Kit
Creating appetite
appeal for Millennials
How the fast food industry should cater to Millennial customers
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introduction
Think Blink
At Shikatani Lacroix, we design compelling at-purchase
moments that connect in the blink of an eye. Our philosophy
and strategic design approach, Think Blink, is driven by a
consumer’s motivation to make a purchase decision.
Everything we do is geared to owning the “at-purchase”
moment. Our firm has a well-earned reputation for designing
integrated brand experiences that effectively connect brands
with consumers to drive measurable results for clients.
About the author
Jean-Pierre Lacroix, R.G.D., President and
Founder of Shikatani Lacroix
Jean-Pierre (JP) Lacroix provides leadership and direction to
his firm, which was founded in 1990. He has spent the last 30
years helping organizations better connect their brands with
consumers in ways that impact the overall performance of their
business. In 1990, Mr. Lacroix was the first to coin and
trademark the statement “The Blink Factor”, which today is a
cornerstone principle for how brands succeed in the
marketplace. JP has authored several papers, has been quoted
in numerous branding and design articles, and in 2001 he co-
authored the book “The Business of Graphic Design” which has
sold over 10,000 copies. JP can be reached at
jplacroix@sld.com and you can follow his thought leadership
webinars at: www.sldesignlounge.com.
Copyright @ 2015 by Jean-Pierre Lacroix. All rights reserved.
Think Blink, The Blink Factor and Trust Ladder are registered
trademarks of Shikatani Lacroix Design Inc.
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introduction
The Millennial generation represents consumers under the age
of 35, born after 1980, and they are the biggest generation in
US history — even larger than the Baby Boomer population.
They are 79 million strong, with spending power estimated to
be at $170 billion. This number attracts the attention of any
marketer looking for growth.
Millennials tend to frown over the traditional fast food chains
and opt for fast casual brands such as Chipotle, Au Bon Pain,
Five Guys Burgers and Panera Bread. Based on a study by
Brand Keys, these consumers place a heavy emphasis on high-
quality ingredients, trustworthiness and interior design. The
following tool kit will detail five initiatives that can help drive
greater affinity from Millennials and help shift the purchase
behaviour balance within the fast food segment.
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part one
1) Create “foodie” experiences worth
sharing
Millennials are all about exploring and trying new types of
foods, and they like sharing these new discoveries with their
friends. Fast food chains need to review their menu offerings
and consider exploring new types of condiments, sauces or
fresh ingredients, and unique seasonal offerings. Also allow
Millennials to customize and create their own masterpieces
worth sharing with friends. Chains should consider unique
offerings such as coffee blends, healthier beverages and foods
not typically associated with fast food. Food offerings should
also explore sharing options where friends can sample a range
of new offerings, which will add to the chatter in both the
restaurant and online.
2) Provide greater snacking options
Most Millennials do not follow traditional eating patterns and
the general day parts as understood by the fast food industry.
They are less likely to eat three meals a day but rather
substitute meals with snacks. Clients such as Quaker have
learned that healthy snacking can be a great lunch alternative
for Millennials who are too busy to take a break. Fast food
operators will need to consider providing a greater range of
healthy snacking options as meal substitutes that fill the gap
between a whole meal and an indulgent treat.
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3) Design lifestyle experiences
Millennials are all about sharing with friends and
co-workers. Restaurant design needs to reflect
the type of sharing experience Millennials
gravitate towards, such as Wi-Fi, communal
tables, and comfortable couch areas for longer
conversations. Food operators also need to
think about their physical packaging, as many
urban Millennials do not drive, and hence don’t
use drive-thru.
McDonald’s recently introduced bicycle-friendly
packaging to meet the needs of this segment.
Watch and see other fast food chains follow.
How about a bike drive-thru lane and more bike
racks at the exterior? Our client TD Bank
realized the importance of bikes and bike racks
and started installing these at all urban and
suburban branches.
In addition, facilities need to be cool,
contemporary and comfortable – consider good
lighting and décor elements, and eliminate hard
seating and uncomfortable booths. Tim Hortons
understood this important factor when we
designed their urban Coffee House restaurants,
which feature communal tables, hipper and
more contemporary environments, and a strong
sense of community.
Restaurant design
needs to reflect the
type of sharing
experience
Millennials gravitate
towards
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4) Allow greater digital access
Millennials grew up with mobile devices, social media and
internet access, and crave social recognition. Fast food chains
should take a lead in offering order tablets at the table, and
service that blurs the lines between fast food and fast casual.
Free Wi-Fi is becoming the norm and restaurants need to up
their game by providing faster internet access because this
generation craves all things video. Geofencing and offering
customized mobile incentives – a territory traditionally not
owned by conformist and rigid fast food chains – are
opportunities worth exploring as this generation wants to feel
special and unique.
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5) Become responsible and healthy
Millennials are hungry for facts on the food they consume –
from the ingredients and nutritional facts to the product
source, ways of production, and the social commitment of the
organization. Fast food chains need to become transparent
and provide a high degree of information that can easily be
accessed and shared digitally.
Recycling and environmental initiatives such as LEED-
designated buildings are becoming table stakes, while many
fast food chains stray from such initiatives.
Fast food chains will also need to move away from their heavy
reliance on red meat as this generation tends to eat more
chicken and non-traditional protein such as vegan alternatives.
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conclusion
For many of the reasons previously illustrated, Millennials tend
to gravitate to fast casual and fast food chains will need to blur
the lines between these categories. Fast food chains need to
overcome the perception that value drives their business. On
the upside, Millennials are willing to pay more for a better
experience. A change in the service, ordering model, and more
welcoming and cooler experiences can go a long way in
attracting Millennials.