How do restaurant owners get Generation Z to eat at their restaurants

Executive Summary

Developing good strategic marketing planning is essential to establish a restaurant in the UK named, Chill Corner. The entrepreneur would like to conduct market research for understanding the recent trend of spending on food among the people under Generation Z. the target market as per the recent market trend are the people aged between 15 and 24 years, the students and office workers and the individual, living in the urban region of the UK, where the spending percentage on food is high. The marketing strategy for establishing the restaurant Chill Corner includes product strategy, pricing method, placing and promotional activities as well as, people management, physical evidence and process, so that the restaurant can develop their first store in London and also promote the services across the UK market through online food delivery operations. The product diversification strategy, premium pricing method and providing offers and discounts with combo meals would be the best strategy for Chill Corner to increase brand value and expand their services strategically. Moreover, the social media advertisement, people management by hiring experienced staff in the restaurant and technical innovation by implementing GPS and ERP would be beneficial for the Chill Corner to establish the restaurant chain and achieve the future success by strengthening customer’s base. Additionally, seeking marketing dissertation help can provide insights that enhance the strategic planning process.

Introduction

In the recent era of globalisation, it is important for the new business firm to design effective marketing mix strategic planning in order to develop tactics of establishing the business by running their operations in a systematic ways. Developing marketing strategic planning includes products, pricing strategy, placing and promotion that have crucial impacts on the organisational operations, where the leader and managers can operate efficiently in the market and promote their products and services. The generation Z is the latest generations that spend lot of money on restaurant and this for establishing a restaurant in the UK, it would be beneficial for the entrepreneur to target the Generation Z and retain them, for long run. Through this business report, it is possible for the new restaurant named Chill Corner to conduct market analysis in the UK and target the Generation Z by developing strategic marketing planning.

Market Trends Analysis

Generation Z is much more likely to spend their money on meals away from home, where they prefer to taste diverse food items and beverages. About 52.4% of their total food expenditure is towards food eaten outside of the home which accounts more than $2772 per year (McSweeny, 2019). As per the analysis, Generation Z spends an average of $760 for food each month where most of the people would like to explore different dine out place and restaurants for enjoying good quality food items and restaurant environment for chilling out. In this year, the online purchase of pizza has been increased by 9%, burger by 10% and fried chicken by 5%, where most of the people under generation Z are willing to eat fast food items (Kelso, 2019).

The sales volume of the restaurants across the globe is also increasing over the period of time, due to increasing population of Generation Z and rise in sending on restaurant. The major food items that the people in generation Z purchase are such as chicken, street food items, fermented food, snakes, pizza and burgers, plant based food and different bowls. This generation has a spending power of over $143 billion and also makes up 40% of the world’s population. It also made 14.6 billion restaurant visits in 2018 and now represents 25% of total foodservice traffic (NPD, 2019). They are technologically savvy and interested to conduct research to gather vast range of information and market data. Through searching and exploring diverse restaurants, the people in Generation Z are willing to go new restaurants for enjoying their leisure time and quality food with family and friends. For the new Restaurant Chill Corner would like to establish their restaurant service in the UK and in this regard, developing marketing mix strategic planning is helpful for them to target generation Z and promote the quality food items and services as per their preferences (Resendes, 2020).

Segmentation, Targeting and Positioning (STP)

STP analysis is important for targeting the right customers for the restaurant Chill Corner, where the restaurant will aim at establishing the restaurant chain in the UK, through setting up the restaurant and also establishing the online food delivery services. The segmentation of the customers for the restaurant is conducted on the basis of demographic factors, psychographic information, age, income class, location and occupation. As per the segmentations, the restaurant will target the right customers as per the market trend and spending pattern in restaurant. As per demographic factors, the target market of the restaurant is the people who are living in the UK and other markets across the UK. The people who are willing to spend money in restaurant for tasting different food items and diverse cuisine are also targeted. The targeted age group will be between 15 years and 24 years, which are considered as Generation Z.

As per occupation, the students and also the office goers are targeted so that they can choose the best restaurant as per their taste and preferences. The restaurant Chill Corner mainly targets the Generation Z, as there is high purchase intension and online spending money on food. It would be hereby beneficial for the restaurant to target the students and the people, who are engaged in service industry and other offices. As per the income class, the medium and high income class will be targeted, so that the people can afford the food items offered by the restaurant. Moreover, the organisation will target the people in urban locations, where the people in Generation Z are more likely to order food online from different restaurants. For further positioning the restaurant Chill Corner, it would be necessary to create marketing strategic planning to strengthen their supply chain and distribute operations to serve the customers across the UK with the best quality food items. The restaurant services as well as online food delivery system will be developed to deliver the best quality food and beverages to the customers.

Customer Persona

Recommendations

Customer Journey Mapping

The Customer Journey Mapping is a visual representation of the customer’s journey, where the client’s perception can be understood. It is important to understand the buyer’s persona, where the clients become aware about the products and services that the restaurant provides. Through this journey mapping, the restaurants also can acknowledge the needs and preferences of the customers through interacting with them via social media, email, live chat session and other channels. The entrepreneur of the restaurant can set the target and create the buyers persona as per the recent market trend and the perception of the Generation Z. Mapping out the buyers journey and maximising the touchlines are helpful for the organisation to identify the customer base and promote the organisational quality products and services efficiently.

The customer’s journey includes the activities such as requirement of the restaurant service and quality food, research on the restaurant through social media and reviews, store visit, making the purchase decision and utilise the products and services for reviewing the quality of the restaurant. After this, the customers under generation Z support the restaurant through recommending family and friends, posting images and reviews on social media and wish to purchase again.

Customer Journey Map

Customer journey mapping will be represented through the picture below, which a flow diagram is starting from client awareness to advocacy. Generation Z is technically skilled and access diverse technology and software application for gaining in depth knowledge and data related to restaurants across the market. For raising customer awareness, there are radio and television advertisement, word of mouth, social media advertisement and direct email. Through the above mention promotional strategies, Chill Corner must focus on promotional activities for raising customer awareness. Considerations is the second stage which includes media interactions, videos and reviews where the customers can review the organisational posts, blogs and videos related to the food menu and pricing so that they can compare with other restaurant and choose the best services.

After searching and comparing the information, purchase decision of the client is made and in this context the organisational front desk staffs try to interact with the customers through social media and emails to confirm the booking both for coming to the restaurant and to serve the clients online. Loyalty is important where the restaurant Chill Corner will aim to serve the Generation Z with the best quality food items and diverse food menu in order to satisfy them and retain the old and new customers in the restaurant. Advocacy is the last stage as per the customers journey map, where the clients provide recommendations and post reviews, share images and information with others so that it would be possible for the generation Z to identify the restaurant and enjoy the best hospitality services.

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