- 20% of UK millennials go out less to restaurants now due to food delivery, shifting £1bn a year to delivery services
- Over half of millennials (52%) would dine in a restaurant where aspects of service are automated
- Millennials predict vegan restaurants will be in the most demand in the next two years
Results from a new survey, sponsored by Planday, the workforce collaboration software company, reveal three key drivers that millennials indicate will shape the restaurant sector of tomorrow.
Driver 1: Millennials are more spontaneous and are shifting around £1 billion in spend a year to delivery services
Restaurants face increasing challenges in forecasting demand and must re-think how they structure service, as home delivery orders become more popular and very low numbers of people make advanced reservations for in-restaurant dining.
- A fifth of millennials (20% compared to 9% Gen X) say they go out less to restaurants now because they are getting more food delivered that they would previously have gone out to eat. This represents a shift worth around £1 billion a year towards food delivery and away from in-restaurant dining.
- Only 9% of millennials now say they are likely to make restaurant bookings and are willing to spend on average 14% less than Gen X on a meal.
Driver 2: Millennials embrace robots and automation
Majority of UK millennials say they are ready for some restaurant services to be delivered by robots, allowing staff to focus on important ‘human’ interactions.
- 52% of millennials indicate they would dine in a restaurant where ordering and payments are fully automated, compared to only 39% of Gen X diners.
- Over two thirds of millennials (71%) say they wouldn’t be against their food being delivered by a robot.
- However, millennials still crave human interaction in their dining experiences as over half (51%) would still like to give a compliment or complaint to a person rather than a machine.
Driver 3: Consumers turn away from fast food and expect more sustainable, healthy options
Consumer tastes are changing as millennials see a future where plant-based, environmentally friendly approach will win out over traditionally unhealthy fast foods.
- For millennials the future is vegan – nearly half of all millennials (49%) predict vegan restaurants will be the most in demand in the next two years.
- In fact, 75% of millennials thought at least one of the following types of restaurants would be most in demand: vegan, vegetarian or those with good environmental credentials. In comparison only 25% of millennials thought fast food restaurants will be in the most demand over the next two years.
- Nearly half (47%) of all respondents placed reduced food waste as their top sustainable priority. Only 11% of consumers indicated that sustainability didn’t matter to them.
John Coldicutt, Chief Commercial Officer for Planday commented: “The UK restaurant sector has seen multiple high-profile closures in the last 12 months, as well-established chains struggle to correctly predict and match market demand. This survey gives us insight into the complex and changing consumer expectations, from younger to older diners, contributing to this challenging environment. We know from our own customer base that things are only likely to get less predictable as just under two thirds (63%) of our customers who are restaurant managers expect the percentage of food orders from online delivery services to increase over the next year. In order to stay competitive and profitable, restaurants need to listen to changing consumer preferences and use the available technologies to cater to an increasingly unpredictable environment.”
Vegan restaurant entrepreneur Loui Blake commented: “The results of this survey absolutely reflect what we are starting to see and are responding to with our two vegan restaurants, Erpingham House in Norfolk and soon-to-open Kalifornia Kitchen in London. We are thoroughly embracing the popularity of delivery services like Deliveroo, adjusting our menu slightly to ensure that we offer a specific menu that will travel well and not offering deliveries when it puts too much pressure on the restaurant’s in-house service. We also know how important sustainability is to our customers and how crucial it is that we clearly communicate all the steps we take, from using Vegware plastics to carbon offsetting schemes, to reassure our customers that both we, and they, are dining without costing the earth.”
Planday is a Business Partner of the Institute of Hospitality
About the survey
The survey was conducted online across 2008 respondents in October 2018 by YouGov. Half of the sample are respondents classified as “millennials”, aged (20-35), and “Generation X”, aged (36-51). The survey was weighted to ensure a nationally representative sample of the respondents.
If 20% of millennials now go out less because they get their food delivered, their custom that’s shifting to delivery is calculated to be worth £1 billion pounds a year. This is based on our survey data that found millennials want to spend on average £31 per meal and that instead of eating out once a month, 20% would shift to ordering in. Market size of 13.8m millennials (source: ONS).
Planday is the workforce collaboration platform that makes it easier for managers and hourly workers to communicate, collaborate, and get work done. With Planday, employees can communicate with each other, swap shifts and clock in and out, while managers can create smart schedule templates, measure their target revenue compared to wage costs and track hours worked. Planday empowers businesses by making the relationship between hourly workers and their managers more efficient, transparent, and productive— which leads to better business returns.
Planday recently raised 35 million Euros in one of the largest funding rounds in Danish history. The Round C funds came from Indinvest and Creandum (the latter of whom has also invested in iZettle and Spotify) as well as private investors.