Broke Gen Zers are dining out more than ever

If you can’t buy a house, why not go out for brunch? That seems to be the logic that’s fuelling a generation of new restaurant lovers, as research reveals that ‘broke, woke’ Gen Zers are making dining out part of their weekly routine.

According to Seven Rooms’ annual report into restaurant trends, over a third of Gen Zers now go out for dinner at least 3-4 times a month, compared to just over one-fifth of Gen X. Astonishingly, 15% estimate they visit a restaurant more than five times a month.

The news is good for the UK’s struggling hospitality businesses, who desperately need to attract and retain customers. But, the world’s first digital generation is a tough nut for marketers to crack. How can restaurants, pubs, and bars tap into the new cohort of foodies?

Gen Z dine out once a week

It used to be that a meal out was a special treat, reserved for celebrating birthdays or pay rises. But the Seven Rooms data suggests that Gen Zers (those aged 14-26) see the traditional lunchroom as an extension of their home kitchen.

According to Seven Rooms, 38% of Gen Z now dine out three times a month. Some still see dining out as an occasional treat, with 47% saying they go out for food just 1-2 times a month; nonetheless, that’s compared to 62% of millennials and 70% of Gen Xers.

What’s behind their lavish spending? It could be that young people feel less precious about long-term penny-pinching, and are instead prioritising present-day comfort; a new approach to personal finance that’s been labelled ‘soft saving’.

With owning a home increasingly out of reach, this generation is putting less away for house or family planning. A survey found that one in three aren’t even saving for retirement.

However, the generational divide could also be linked to the rise of online ordering, which has made Deliveroo drivers an increasingly common dinner guest at the front door.

Gen Z might also be sobering up. Switching to soft drinks, they have more money to spend on food. As young people drink less, they are seeking out ways to socialise that aren’t centred around alcohol — and landing on a sharing platter at Nando’s.

Customers seeking value

It’s tempting to believe the narrative that young people are big spenders, happy to blow their payslip on a pair of Uggs or a vial of baby botox. But, the Seven Rooms report also reveals that cost is certainly still a factor when it comes to Gen Z dining habits.

Gen Zers were most likely to care about access to free menu items, with 59% of respondents naming this their most important deciding factor when choosing a restaurant.

In comparison, millennials are most likely to want early access to reservations from loyalty programs, while Gen Xers care most about exclusive events and experiences.

Our list of the top food and drink trends for 2024 highlighted value for money as the best way to a customers’ heart (and stomach). Offering discount deals could be the key for restaurant businesses hoping to surprise and delight Gen Z eaters.

How you communicate with customers is also important. Moving away from the desktop, Seven Rooms found Gen Z prefers to be contacted by text to be told about exclusive offers, with 21% of respondents citing this as their preferred method of communication.

Good news for restaurants

That the next generation loves dining out is great news for SMEs. Brick-and-mortar firms are struggling as high street brands go into administration, and a loyal customer base could be the silver bullet to help them grapple with financial threats.

With the minimum wage pushing up staffing bills, and many companies struggling to hire for restaurant jobs, customer support is something to be celebrated.

Not catering to this audience is also a threat. We’ve highlighted how Gen Z are drinking less, and the loss of the boozy student following has contributed to the closure of many UK pubs. If the government’s outdoor smoking ban comes into effect, numbers could dwindle further.

Some may call it wasting your money; others would say it’s self-care. Whatever your view, the fact is that Gen Z’s larger appetite for dining out is propping up our local restaurants. Perhaps Eat Out to Help Out has become the post-COVID generation’s new mantra.