US
Source: Datassential
A majority of Millennials (60%) reduced their spending during the early months of the pandemic, readily abandoning fashion but not food, according to a survey by Clutch, a B2B ratings and review platform.
Recession-wary after 2009, they contributed to an unprecedented US savings rate of 33% in April. Only 5% of Millennials reported spending more money than the previous month during March and April.
Those who did shop online bought food — lots of it. Groceries were the top expense for 40% of Millennials, reports Clutch. Half the Millennials surveyed reported spending less dining out, but 50% say they are still eating takeout and order delivery. Only 28% have not used food pickup, and delivery options since the start of the pandemic, reports Clutch.
Now, Millennials and Gen Zers are eager to get back to their favorite cafés and restaurants.
“As restaurants reopen younger diners are likely among the first to return,” according to Datassential c.e.o. Jack Li. Gen Z is statistically more likely to have ordered food for delivery from restaurants (51%) and purchased groceries for delivery (45%), with 47% reporting they used curbside service or restaurant takeaway. Restaurant delivery increased slightly (52%) for households with kids.
The numbers above would be higher if restaurants removed obstacles to online transactions. Datassential’s survey of 4,000 consumers from June 5-15 revealed that during the pandemic, 32% of respondents had “given up” ordering because the website, food order app, or online process was so frustrating. The number of frustrated consumers was much higher among Gen Z (47%) and Millennials (45%). In addition, 59% of Gen Zers said they found it difficult to determine online whether restaurants were open or closed.
As of June 15, 28% of respondents reported dining in a restaurant. The least likely to do so were boomers (23%), and the most likely were millennials at 35%. The survey found 34% of Gen Zers had dined-in and 25% of Gen X. The survey found that 50% of respondents entered the restaurant for takeout (56% of Millennials) and that 62% of respondents had used the drive-thru (67% of Millennials). Boomers (55%) were more likely to use drive-thru than takeout, curbside, delivery, or dine-in.
David Portalatin, The NPD Group food industry advisor, said: “There are three main variables that will influence continued restaurant recovery: reopening of on-premise dining and expanding allowed capacity; the willingness of consumers to dine out and feel safe and confident in doing so; and the economic well-being of the consumer.”
“Thus far, the evidence in restaurant transactional improvement confirms that dining rooms are opening, and there is consumer demand to fill opened restaurants.”Millennials and Gen Zers are also the most likely to order adult beverages for delivery (each 35%), while only 8% of boomers reported ordering adult beverages for delivery. The Tea Association of the USA estimates 87% of Millennials drink tea.