How Can Restaurants Increase Sales Amongst Millennials?

Millennials taking selfie in a cafe

Restaurants have small profit margins and have a lot of competition. If they want to increase their revenue, they have to focus on customers that are using their services the most and spending more money at their restaurant. Data from US Census 2014 shows that millennials make up 28.7% of the population in the US which is more than any other generation group. They have a total annual spending power of $2.45 trillion! According to Business Insider, they eat the most share of their meals at restaurants compared to previous generations. This is good news for restaurant but they still have to pay special attention to millennials and cater their services towards them if they want more of their business.

The eating habits of millennials are different from the previous generations. They prefer to eat out more and cook at home less. They spend the highest share of their food budget on prepared foods as Business Insider reports. These habits are closely related to their preference for convenience rather than cost. Therefore, it is important for restaurants to make their customer’s experience as convenient as possible.

A lot of restaurants are making it more convenient for their customers to order food from them by offering delivery or pick-up services and making it as accessible as possible. Although it is difficult and not cost efficient for all restaurants to offer delivery, there are a lot of different companies such as GrubHub and Uber Eats offering these services which makes it very easy for customers to order and receive their food. These companies have become very popular in the last few years and more and more similar companies are starting every month which shows that the demand for deliveries amongst the younger generation is on the rise. 

Millennials are connected to technology more than the older generations since they had access to personal computers and internet from an early age. The use of technology such as having mobile apps is also another way for restaurants to attract millennials both because they using technology more than older generations and are looking for convenience. According to the 2017 US Mobile App Report from Comscore, Millennials are the most engaged users of mobile apps out of other age groups and they are more interested in new apps. Millennials rely heavily on tech and are early adopters. On average, they check their smartphones 43 times a day! With a mobile app, access to the restaurant is just one tap away and push notifications can be gentle reminders of that.


mobile ordering app for restaurants with Craver

Mobile apps make it easy for customers to browse through menus and order food. Compare this to having to search and open a restaurant’s website on a browser, then calling and possibly staying on hold before someone can take your order. A lot of mobile apps also have in-app payments which means that you don’t even have to take your wallet to the restaurant with you!

Millennials use coupons less than older generations due to the inconvenience of it according to business Insider. However, there are ways to offer deals and discounts that are easy for customers to use. For example, they can be offered through a mobile app instead of having to carry a printed coupon. The customer can collect coupons or rewards right on their smartphone and redeem them when making a purchase at the restaurant or through the app.

Millennials have a big influence on the marketplace due to their numbers and spending power and it only makes sense for businesses to want to focus on them. Studies show that millennials place more importance on convenience when it comes to food which is a positive for restaurants generally. However, given how much competition there is in the restaurant industry, offering services such as delivery or having a mobile app, would be a competitive advantage to win the business of millennials.