PYMNTS-MonitorEdge-May-2024

Gen Z Consumers Most Likely to Use Aggregators for Discovery

Gen Z Consumers Most Likely to Use Aggregators for Discovery

Consumers overall may typically already know where they are going to order when they open their delivery app, but younger consumers are more open to new restaurants.

By the Numbers

The April edition of PYMNTS’ Connected Dining series, “Connected Dining: Third-Party Restaurant Aggregators Keep the Young and Affluent Engaged,” for which we surveyed nearly 2,300 U.S. consumers, revealed that 58% have made their restaurant choice before logging into a platform most or all of the time.

aggregators

Yet this share varies depending on generation. Additional research from the survey revealed that older consumers are even more likely to already know where they are going to order before opening the app, with 69% of baby boomers and seniors stating they have made their decision in advance always or most of the time. In contrast, only 51% of Generation Z consumers said the same.

Thirty-eight percent of Gen Z diners have only made their decision before logging in about half the time, and 11% never or rarely know where they are going to order before they get onto the platform.

The Data in Context

Reaching this demographic can be key for restaurants looking to leverage aggregators’ marketplaces for discovery.

Take, for instance, Domino’s, which after years of holding off finally announced a partnership with its first aggregator, Uber Eats, earlier this summer, although even orders placed through the aggregator are fulfilled by the pizza chain’s in-house network of drivers.

“Our research in the U.S. and learnings from 13 of our international markets has shown us that taking orders using the Uber Eats Marketplace provides access for Domino’s and its franchisees to a new segment of customers and what we believe will be a meaningful amount of incremental delivery orders once it’s widely available,” Domino’s CEO Russell Weiner said in a statement in July.

Earlier this year, Starbucks expanded its partnership with DoorDash, which also came after years of the coffeehouse giant’s notable absence from the platform.

“Our partnership with DoorDash allows us to provide our customers with another convenient way to enjoy Starbucks wherever they are,” said Brooke O’Berry, then Starbucks senior vice president of digital experiences, commented in January.

PYMNTS-MonitorEdge-May-2024