McDonald’s and other fast food restaurants have a Gen Z problem
Some of the youngest consumers are not big fans of fast food – and that’s a problem for big chains like McDonald’s.
Gen Z restaurant-goers surveyed by Morning Consult were less likely to say they thought fast-food chains were good value for money than any older generation. Morning Consult collected the data in monthly surveys throughout this year and also broke down the results for other generations, including Millennials, Gen X and Baby Boomers.
The key is to win over Generation Z guests, Lindsey Roeschke, travel and hospitality analyst at Morning Consult, told Business Insider.
Some Gen Z consumers are teenagers or young adults who are just deciding which brands and eating habits they prefer, Roeschke says. Older members of the generation are now becoming parents – they are among the most frequent fast-food consumers, as they are often looking for a quick, easy meal for their families.
“If you don’t reach out and contact them now, there’s a chance you’ll scare them away because they’ll become an even more important target,” Roeschke said of the restaurants.
Although the majority of each age group thought fast food was good value for money, there were differences between them. In July, the last month of the survey, 48 percentage points of Generation X diners said fast food was good value for money. The difference was smaller among Generation Z diners, at 34 percentage points.
Charts show that Generation Z people are less inclined to view and purchase fast food as inexpensive compared to older consumer groups. Morning consultation
Like Baby Boomers, Generation Z restaurant goers were less likely than Millennials or Generation X to say they were likely to purchase fast food—a measure Morning Consult calls “net purchase consideration.”
After years of price increases, many fast-food chains have begun offering discounts this year amid declining sales, including redesigned economy menus and limited-time meal deals.
The most famous example so far is McDonald’s $5 meal deal. The chain had originally planned to offer the meal for a month starting in late June, but has since stated that it will remain on the menu in almost all restaurants until August. Burger King and Wendy’s have also launched their own value meal deals this year.
However, the limited-time offers have done little to change customers’ opinions about the value for money of fast food, Morning Consult also found.
There are other ways for fast-food chains to retain younger customers, says Roeschke.
Roeschke says previous Morning Consult research suggests that spicing up menus with new dishes (think Chipotle TikTok-inspired fajita vegetable quesadilla) could attract more Gen Z diners.
According to Roeschke, loyalty programs that grant exclusive access to frequent buyers can also appeal to Generation Z visitors.
“They place a lot of value on things like early access to new menu items and insider knowledge,” she said, adding that many younger consumers “want to be the first to know” and “the first to share something with their friends.”
McDonald’s did not immediately respond to a request for comment.
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