Restaurants Are Closing the Digital Ordering Gap With Gen Z

Restaurants’ efforts to attract Generation Z to their digital channels appear to be paying off.

The Context

Restaurants and their tech partners have been working hard throughout the past year to drive digital adoption with zoomers.

For instance, United States’ leading restaurant aggregator DoorDash announced in April the launch of DashPass for Students, a half-priced version of its membership program created for college students.

“With the launch of DashPass for Students, we’re excited to change the game for students with a plan that’s designed specifically for them and provides access to everything from late night study snacks and grocery items to school supplies and dorm essentials,” Kofi Amoo-Gottfried, chief marketing officer at DoorDash, said in a statement at the time.

These young consumers’ digital spending can vary from month to month. Fast-casual giant Chipotle Mexican Grill, which has more than 3,000 locations across five countries, finds every year that the habits of college students, who now tend to be Gen Z, tend to fluctuate considerably with the time of year.

The brand has been looking to reach these consumers with digital initiatives geared toward the digital spaces they frequent, such as launching Roblox experiences, much as many restaurant brands have been looking to establish a presence on TikTok.

By the Numbers

Research from the latest edition of PYMNTS’ ConnectedEconomy™ report, “The ConnectedEconomy™ Monthly Series: Meet The Zillennials,” which draws from a November survey of a census-balanced panel nearly 4,000 U.S. consumers, reveals that 69% of the Gen Z population engages digitally with restaurants. This share is barely any lower than the most digitally engaged group, millennials, 71% of whom make restaurant purchases online.

These figures mark a significant improvement from a year ago. PYMNTS’ October study “Super Apps for the Super Connected,” created in collaboration with PayPal, drew from a January survey of more than 9,900 consumers across the United States, the United Kingdom, Australia and Germany. The study found that only 61% of gen Z consumers placed off-premises restaurant orders online, well below the share of millennials, which held relatively constant at 70%.