Time-Saving Incentives Will Help Restaurants Reach Gen Z, Millennials

Time is money. And, as noted in the PYMNTS collaboration with LendingClub, “New Reality Check: The Paycheck-to-Paycheck Report,” consumers representing the youngest two adult generations especially may be in short supply of both.

Outpacing Gen X consumers and baby boomers and seniors when it comes to having a side hustle, members of Gen Z and millennials simply may not have the opportunity to cook. Almost half have a side job or other source of supplemental income, after all.

The time-saving convenience that aggregators can provide may be particularly likely to drive these age cohorts’ use in today’s economic landscape, especially as consumers keep discretionary spend to a minimum.

Indeed, with three-quarters of consumers who order from aggregators doing so to avoid meal prep, per PYMNTS’ Connected Dining report, Gen Z and millennials use these platforms at a higher rate than either Gen X or baby boomers and seniors.

While the use of aggregators overall has declined somewhat, 44% of aggregator users have made more purchases via aggregators this year than last.

In an interview with PYMNTS, Jingyao Wu, chief operating officer of food delivery app HungryPanda, explains how these repeat customers have helped keep aggregators afloat. “So, in the pandemic, we saw customers’ monthly frequency increase dramatically from three orders per month to around eight orders per month within just one or two months. After the pandemic, the order frequency, according to our data, hasn’t decreased too much. It’s around eight as well. So, I think more and more customers are already reliant on the delivery service.”

The Connected Dining report also mentions a detail that may be of particular use to restaurant owners trying to reach younger consumers: The rate of repeat orders through aggregators, as 58% of surveyed diners have already made their restaurant choices before logging in. Restaurants may appeal to these customers who will keep coming back with other incentives such as including a guarantee of meal readiness within a particular timeframe or offering a discount for ordering directly through a restaurant’s site or platform.

Restaurants seeking to appeal to Gen Z and millennials may consider appealing to their lack of time for chores such as cooking to their advantage. By helping support their hustling lifestyle, eateries could shore up their loyal customer ranks.