Aging Population Demands Restaurants’ Continued Focus on the on-Premise Experience

With the United States population getting older, restaurants are challenged not only to continue to innovate their digital technologies but also to maintain the quality of the in-restaurant experience.

The U.S. Census Bureau found in June that the median age across the country is on the rise, growing 2.4 months over the course of last year, part of an ongoing trend upward.

“[B]irth rates have gradually declined over the past two decades,” Census Bureau Demographer Kristie Wilder said in a statement. “Without a rapidly growing young population, the U.S. median age will likely continue its slow but steady rise.”

This shift suggests that rather than rushing to prioritize only the digital technologies that younger consumers are flocking to — delivery aggregators, direct ordering apps and websites, loyalty apps, QR codes and more — restaurants must continue to also keep an eye on what is happening inside the restaurant, as older consumers prefer the brick-and-mortar experience.

Research from PYMNTS’ study “Connected Dining: Rising Costs Push Consumers Toward Pickup,” which drew from a survey of more than 2,100 U.S. consumers earlier this year, revealed that while the majority of young consumers now favor off-premise channels, older consumers continue to opt for on-premise. For instance, only 42% of Generation Z diners and 41% of millennials had purchased their most recent restaurant meal inside the restaurant, while 62% of baby boomers and seniors did the same.

Additionally, findings from PYMNTS’ exclusive report “Connected Dining: Third-Party Restaurant Aggregators Keep the Young and Affluent Engaged,” for which we surveyed nearly 2,300 U.S. consumers, revealed that Generation Z is five times as likely as baby boomers and seniors to use third-party food aggregators. Specifically, 69% of Generation Z consumers reported having used a food aggregator in the previous six months, while just 14% of baby boomers and seniors did the same.

Yet despite the aging population, and despite older consumers’ preference for on-premise dining, many restaurants are completely overlooking the needs of these diners. The pandemic began a wave of restaurants opening off-premise-only locations, ranging from stores that only offer pickup and delivery to virtual locations with no brick-and-mortar presence.

Plus, even when it comes to the on-premise experience, restaurants are turning to front-of-house technologies that are alienating older consumers, from simple changes such as adding QR code menus (which only 16% of baby boomers and seniors and 34% of Generation X consumers like) to more elaborate tech innovations such as robotic servers or even fully robotic locations.

As restaurants adopt these technologies, many consumers — especially older ones who miss the familiar dining experiences they enjoyed for decades — are growing frustrated with declining levels of face-to-face service.

Findings from PYMNTS’ study last year, “Digital Divide: Technology, the Metaverse and the Future of Dining Out,” which drew from a survey of nearly 2,500 U.S. consumers, revealed that 77% of restaurant consumers said staff friendliness is the most important feature a restaurant needs to provide. Plus, 63% said they believe restaurants are becoming increasingly understaffed, and 39% said they are becoming less and less personal.