CHICAGO— Millennials made more than 13 billion visits to restaurants in 2010 and spent more than $73 billion on food and beverages, according to a new market report from The NPD Group, which reveals the diverse generation has varied values, tastes and preferences, and foodservice operators need to offer greater menu variety to attract customers.
According to the “Reaching the Millennial Generation" report, the 52 million Millennials, ages 18 to 29, spend a higher percent of their total foodservice dollars than other generations. The demographic group will overtake Baby Boomers in the next 10 years as the most sought-after target for restaurateurs, and foodservice operators and manufacturers need to understand the similarities and differences among Millennials.
Millennials spend more than 50% of their foodservice dollars on takeout food. They also spend a higher percent of their total foodservice dollars than other generations on snacks, and have a higher order incidence of snack food items like ice cream, nuggets and mini sandwiches.
The report noted Millennials differ from one another in a variety ways, including ethnic diversity—1 in 5 Millennials is Hispanic.
“Millennials are moving into their heavy foodservice using years, and this is the time to reach them to build their loyalty," said Bonnie Riggs, NPD restaurant industry analyst and author of the report. “In reaching out to them, it’s important to understand that Millennials are not a one-size-fits-all generation and their needs and wants are varied."
