From afar, the checklist for opening a successful casual dining restaurant probably seems pretty basic. Great recipes, consistent suppliers, well-trafficked location, reasonable prices, and perhaps a franchise deal.
Build a towering bacon double cheeseburger, and they will come.
But these days success in the food business — and most other industries, as well — requires a keen understanding of market segments and their tastes. And the biggest lesson to learn is this: Demography is destiny.
Specifically, it turns out that different generations have completely different expectations of what a fast food or casual dining restaurant should offer.
Of course, yawning generation gaps are obvious to sociologists and curmudgeons alike: The Greatest Generation endured the privations of the Depression, crushed Hitler and built an enduring postwar order. Generation Z thinks breakfast cereal is hard to make.
Baby Boomers created a timeless musical anthology, from Beatles to Zeppelin. Millennials have autotune. The Silent Generation built jumbo jets and went to the moon. Generation X became helicopter parents.
Older generations remember what the North American food landscape was like before the proliferation of nationwide chains shuttered the roadside diner, ending an era of Saltines crumbled into bowls of chili. Newer consumers have been known to lose it upon the discovery of a missing dipping sauce.
With such wide divergences in outlook, it makes sense that disparate age groups seek different restaurant experiences. Given this reality, Entrepreneur magazine suggests that the most successful restaurants don’t try to please everyone, but rather focus on 10 percent of the overall consumer market, or less.
With Millennials, the magazine found that a quarter of dining visits were to burger joints, with pizza restaurants second at 12 percent. Not surprisingly, this group expects service at the speed of a TikTok upload. Quick, convenient service that offers digital payment options wins the day.
Generation X, by contrast, has matured into a demographic segment with strong family values. “While earlier generations strove to do better financially than their parents, Gen Xers are more likely to focus on their relationship with their children,” notes the magazine.
Jason Hill, the owner of family-friendly Burger Barn in southern Ontario, Canada, identifies this as the sweet-spot generation for casual dining restaurants like his own.
“This customer base has really grown in so many ways,” he says. “They’ve left a lot of frivolous pursuits behind and seek out value and a comfortable experience. Before the pandemic, they were big fans of buffets and all-you-can eat salad bars. If you’re offering the right menu and environment, many of them will become your regular customers, bringing their families for leisurely breakfasts and dinners where the overall experience is a high priority.”
Baby Boomers went through this phase, but most in this group no longer have kids at home. Flush with the highest discretionary income of any group, they now have extra money to spend, along with the impulse to try new things.
Baby Boomers often go for upscale, trendy restaurants. They love unique themes and new cuisines. “That said, those on the leading edge of the Boomer generation are becoming grandparents, and often look for family-friendly restaurants where they can create memories with grandchildren,” says Jason Hill.
Finally, there are seniors, commonly defined as people 65 and older. “We see so many seniors at Burger Barn,” he notes. “And it’s not just because there are many residents of our region who never left their hometowns. Many seniors are on fixed incomes, and so prices are important. They also love a place where they can meet and talk with their friends each day. They really look for friendly service, too, because they want to be on a first-name basis with the waitresses and cashiers they see so often. If you provide these ingredients, you’re sure to attract this age group, especially if you add early bird specials, and menus with lower prices and smaller portions.”
Jason Hill adds that there is an extra bonus focusing on this group: “You’ll see photos of grandkids all day long, but the best thing is that folks at this age have some fascinating stories to tell, and they really know how to tell them.”