Research cited by strategy director Anna Massey of foodservice marketing agency Omne, found the generation is moderating its alcohol intake but describes high levels of ‘love’ for drinking alcohol.
However, their demand is for the experience rather than the effects with 50% stating a ‘love’ for the category, 37% having ‘love-hate’ feelings towards it and just 13% deemed have ‘hate’ for it.
Massey, who took on the subject of ‘Unlocking Gen Z’ at the conference at Manahatta in York city centre said cocktails are the top choice for Gen Z - the generation of people aged 16 to 29 (born in 1996-2009) and comprise 7.7m people in the UK, which is 11% of the population – with 58% drinking them every time or almost every time in the on-trade.
On which drinks they like at pubs, bars and restaurants, soft drinks gained 54% of the vote but they also drink cocktails (51%), spirits (38%), beer (31%), cider (27%), wine (26%), low & no (19%) and hard seltzers (9%).
In top spot on certain categories, they voted beer as best in value for money and wine as trustworthy and reliable but cocktails topped the list on excitement and innovation, served to a high standard, having a good range of options and aesthetically pleasing.
And despite 71% of Gen Z living with their parents/family, they do not possess lots of money as operators would expect or want them to and getting good value is the number 1 priority for this age group.
60% of all weekly on-trade visits
They are forecast to represent 39% of the total spend in retailing by 2030 and, importantly to pubs and bars, they represent three in every five visits to the on-trade every week, which is 17 percentage points higher than the average person in the UK.
Massey said of Gen Z: “They are shaped by a shifting financial landscape, pandemic lockdowns, climate anxiety, a tough job market and only know the world with the internet and social media.
“They demand more from brands. The demand a level of accountability across the board down to hospitality brands and want them to be sustainable, to be ethical in the way they source, to be considerate in that space.”
The top five demands of Gen Z starts with value for money at the top of the list. Massey said that despite 71% living at home still, they are still hyper-aware of the need to save money.
Some 30% actively seek out deals and offers, 42% would rather order a takeaway than go out on a Friday night and affordability is a major driver with many seeking cost-effective eating experiences.
Massey added Gen Z follows the likes of Loud Budgeting and CouponkidUK – who Massey labelled as the “new Martin Lewis of Gen Z” – TikTok to learn hacks on saving money when dining out of home for example.
Second on the list is experience. Massey cited the atmosphere or vibe is the top factor in encouraging Gen Z to visit the on-trade earlier and throughout the day – which Gen Z does by 10 percentage points more than the average person.
She added 72% of Gen Z expect a good ambience, 64% expect new and unique experiences while three in 10 (29%) are visiting venues with competitive socialising activities more frequently than a year ago.
Authenticity important
Third on the list of demands is authenticity and innovation, with 73% agreeing they would spend more money at a venue they consider authentic while 61% will visit places they consider to be authentic more frequently than regular on-trade venues.
On innovation, 74% are happy to spend more at sites they consider to be innovative and some 70% agree innovation is important to them when choosing where to eat and drink.
Health and moderation clocked in for fourth most important demand and stats cited includes 30% of Gen Z have a dietary requirement with 73% expecting those needs to be catered for in venues. The most expected requirements were for vegetarian, low fat diet, vegan, low sugar and low calorie, respectively.
On moderation, three in 10 (27%) have decreased the alcohol they drink since last year but some 48% imbibe as they did a year ago with 13% drinking more and 12% not drinking at all.
The final demand is for sustainability and ethics. While Gen Z cite charitable and community initiatives run by the venue, the fact a venue is part of a chain and the sustainability environmental credentials of the venue as the top three over indexing factors while price is the top factor to those aged between 35 and 54 and the quality of food available is to customers aged 55 and over.
Community is key for Gen Z with 52% agreeing that feeling like part of a community is important when picking a pub, bar or restaurant to visit and 53% choosing where to go to support their local community.
