Nearly a third of restaurants’ annual income now comes from the spending power of millennials, new research has found.
The report, Finding the balance: human touch vs high tech, revealed that millennials make up 29% of restaurants’ yearly revenue. They also spend 13% of their total income on eating out, which they do on average about four times a month.
Millennials are typically considered to be born between 1981 and 1996 (aged 22 to 37 in 2018), with more than half (60%) either living with their parents or part of a couple with no children, meaning their disposable income is relatively considerable.
The research, carried out by FTI Consulting in May 2018 on behalf of law firm CMS, also revealed that 25% of millennials will spend more at a restaurant if its social media ratings are excellent, while 72% value interaction with friendly restaurant staff.
Some 47% of millennials also want to order their food and drink prior to their arrival at a restaurant, while 44% prefer to pay through an app and 34% want to order their food electronically at the venue.
Mark Kozo, Head of Marketing at Portman Asset Finance, said: “These findings give restaurant owners a really useful insight into the expectations of millennials, who are clearly a vital customer base for their businesses.
“Implementing new technologies to appeal to this tech-savvy generation, such as pre-ordering and payment apps and interactive e-menus, as well as investing time and resources into boosting their social media ratings and SEO rankings, is an effective way of futureproofing their company.
“Portman Asset Finance has helped several independent restaurants grow their businesses by arranging funding on their behalf for a variety of purposes. A lease finance agreement with flexible repayment terms, for example, can help your catering business purchase cutting-edge equipment and technologies without eating into your working capital, while a commercial loan gives you the freedom to invest in areas like digital marketing or salaries for key staff.”
If you would like to invest in your restaurant to ensure it can encourage more millennials through the door, speak to our expert Account Managers on 01604 321 995. More details about our choice of finance products for catering companies can be found here.