Like many progressive marketers, foodservice operators are increasingly using generational segmentation to better understand their customer base and the values that drive their decisions on where and what to eat.
G.I.s, matures, baby boomers, Gen-Xers and millennials are a few categories used to describe audiences. In foodservice, millennials (born 1980-2000) and boomers (born 1946-64) are two of the most talked-about segments because they represent the largest sector of foodservice consumers.
But there are nuances to each group that such broad categorizations often ignore.
Personality, desires, memories, lifestyle and attitude characteristics and perceptions are just a few of the variations that may be overlooked.
Two of the leading research companies focusing on foodservice — Technomic and Datassential — cite a movement from focusing on generational segments (the “who”) to eating occasions (the “when”) and eating motivations. It’s this kind of hyper-segmentation that can provide value for foodservice operators and growers/shippers alike.
Technomic categorizes consumers into seven eater archetypes, each with a distinct psychographic profile.
“In addition to life stages, consumer attitudes about health, value, convenience and the overall role of foodservice in their lives drive significant differences in preferences and behavior,” said Colleen Rothman, Technomic manager of consumer insights.
Technomic cites functional eaters, which make up 20% of the population as consuming 22% of weekly meals at foodservice. For them, food is fuel, and they tend to skew lower-income, male and millennial. Busy balancers are 14% of the population, and represent 23% of foodservice meals.
Life for them is on the go, and foodservice makes their lives easier. Busy balancers skew toward females, millennials, and mid- to upper income. Health enthusiasts represent yet another category, and are at the forefront of dining.
This archetype thinks about sustainability and organic, and believes eating at home is healthier. While 12% of the population, they only comprise 6% of meals.
Motivations are also another way to look at eating occasions. Whether eating a work lunch, casual lunch, quick bite, romantic meal, family meal, while on the morning commute, running errands or for guys’ night out, there are numerous reasons why we choose to dine out.
These occasions shed light on why consumers make certain choices and offer insight on how to best target these motivations.
Just as it’s difficult to put consumers into neat categories, it’s also difficult to do so with foodservice operators. In 2014, there were more than 1.1 million foodservice outlets in the U.S., broken down into three major groups — restaurants, retail food, and on-site foodservice.
Furthermore, these outlets are broken into 18 subgroups, each with unique value propositions, menus and consumer segments.
So where does all this lead us? Just as we cannot lump Chinese food restaurants into one neat bucket, and expect that the needs of a Sichuan cuisine operator are the same as that of a Cantonese or Hunan style restaurant, we must avoid the simplicity of treating operators alike.
Fine dining operators are likely to turn up their nose at pre-cut salads, while they work very well for mid-scale operators.
Health care and school operators generally want a one-inch chop lettuce for ease of eating, while others consider it “too processed.”
When developing a product or a sales strategy, the rules are the same — know the type of restaurant operation, and identify their customer demographic and eating occasions.
When the hard work is done up front, you will be able to demonstrate value to foodservice customers by showcasing your understanding of them, their business and their consumer segments.