New research by pointOne EPoS reveals restaurateurs in the QSR and casual dining sectors are facing common challenges all centred fundamentally on the pressures to increase profit margins in a tougher market, introducing new forms of payment and service, whilst creating customer experiences like never before – especially when it comes to satisfying Millennials and Gen Z’s hunger for speed, convenience, choice and a totally connected digital world.
The new report, “Driving Success in an Era of Competition & Consumer Change. Till, Tablet to Kiosk: The Restaurateur’s Guide to 2019 & Beyond”, highlights the critical need for QSR and casual dining outlets to place Gen Z in the heart of business planning and investments.
Commenting on the new report, Steven Rolfe, Managing Director at pointOne said:
“Whilst there has been much focus on the Millennial dining market, Gen Z has very different needs and these must be accommodated for when considering EPoS infrastructure and extending the digital dining customer experience.
“Over the last year App development and Kiosk introduction has become very much a hot talking point with many of our customers and over the next twenty-four months we expect to see more projects rolled out as part of the industry’s digital transformation to adapt to new consumer trends and the Gen Z future.”
Top 4 Gen Z Trends & the Potential Impact to You
- Digital Connection
The online, always connected world of Gen Z is changing the shape of the restaurant operation and the future evolution of EPoS. Instead of traditional advertising methods, Gen Z loves digital engagement and interaction. Interestingly, their recommendations for restaurants come from peers and through the digital word of mouth that apps and community platforms, such as Yelp, provide.
Today and beyond, restaurateurs need to become part of this digital conversation with their customers and reward this customer base with the gratification they crave through mobile apps for food delivery, loyalty and fast ordering.
When reviewing your next EPoS system, it is essential that key digital strategies become part
of this process to ensure you remain relevant and capture Gen Z in as many occasions as possible such as dining in, takeout and delivery.
Pizza Union’s success stems from its ability to meet the need for speed, convenience and amazing online ordering and collection service. With sites across London, Pizza Union harnesses premium EPoS technology to achieve super-fast artisan Italian pizza take-away or eat-in.
- Every Penny Counts
Gen Z’s are far more careful with their money than their predecessors, the Millennials. Growing up in the wake of the Great Recession and watching their families and communities struggle financially Gen Z is conditioned to be more financially cautious. Gen Z’s top three
priorities are getting a job, finishing college or university and safeguarding their money.
Restaurants can adapt to this by offering low cost additions to the menu, mix ‘n match, flexible add on’s and meal deals, which may entice younger customers to a restaurant. Affordable flexibility is the key.
- Generation Grazing
Quick service restaurants are more popular than ever but modern consumers expect more convenient ways of ordering and instant gratification. To attract Gen Z, it’s important to offer smaller portions and snack options, in addition to regularly portioned meals, for
grazing throughout the day. While Gen Z may not sit down for lunch, they will grab food whenever it’s convenient and to accommodate their busy schedules. Making ordering and delivery fast, convenient and easy is essential.
- Healthy Options
In addition to smaller portions, Gen Z is also obsessed by what goes into the food they eat and where it comes from. According to a Tufts Nutrition report, 41 percent of Gen Z say they would pay more for foods they perceive as healthier, compared to only 32 percent of millennials. Gen Z also look for sustainably sourced ingredients and are tapped into “healthy” foods, such as those that are GMO free and organic.
Restaurants can adapt to these preferences by posting where produce comes from and including nutrition information through kiosks, apps and online.
Millennials and Gen Z are Hungry for Self-Serve
Millennials, Gen Z and Quick Service Restaurants are leading the way in many ways, it is the quick service sector that is driving this trend as cashless payment options are fast becoming the method of choice for smaller purchases within bars and coffee shops and the QSR sector.
Today in any coffee shop queue you are more likely to see customers brandishing their contactless card or smart phone rather than reaching for their wallet or purse to fish around for cash.
The cashless bug has bitten all sectors of society from teenagers to pensioners but the majority of the new adopters of these new payment methods are millennials, those born between 1990 and 2010 who have never known adult life without a smart device and the Internet.
It is also this generation that has boosted the hospitality industry over the last decade and made quick service outlets the fastest growing sector in the industry; and this trend is set to continue. According to RnR Research the quick service restaurant sector will achieve a compound annual grow rate of almost 6% up to 2019.
7 Essential EPoS Features for Gen Z
- Kiosk Ordering
Kiosk ordering is on the rise and enables an increased opportunity for order personalisation, food nutrition information, impulsive up-sells, speed, digital engagement, reduced staff and queue boosting.
- Tableside Ordering
Mobile PDAs and tablets for taking orders are on the increase and now can utilise all your common EPoS function on the move helping your serve outside, queue bust, reduce staff or just provide a more convenient way for your diners to order.
- Online Ordering
Online Ordering enables your customers to order and pay via your website for delivery or in-store collection. Coupled with a smartphone app that can be customised to your business, online ordering offers a unique way not only to reduce the pain in processing orders but to greatly increase the customer experience.
- Mobile Apps
Smartphone apps are fast becoming essential tools for hospitality businesses to enable you to stay relevant now and in the future. From table and online order and pay, it’s all about creating new customer facing apps to enhance your customers’ experiences.
- Driver Apps
If you need to take orders fast, send to prep, allocate to driver and manage priorities then your EPoS system should have an integrated order management solution to keep your order to delivery operation swift, efficient and profitable.
- Open Third Party Integration
To create one powerfully efficient EPoS hub, you need to ensure your platform has open and easy API integration for current and future applications.
- Loyalty & Marketing
Loyalty programs are a must have for every QSR & Casual Dining restaurant and a good EPoS system will integrate with the market leading loyalty providers to enable the flow of real time customer data for multi-site operations and across all customer digital communication channels.
pointOne EPoS Ltd
Teme House, Langstone Business Park, Newport, NP18 2LH
Tel 0345 862 0005
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To download your copy of the report CLICK HERE