Disposable income is key to spending on “extras,” and millennials seem on their ability to earn more money. In Q1’s latest survey, 43 percent of millennials are “getting by” financially, 59 percent are concerned about credit card debt and 79 percent are concerned about income growth.
Couple that with many millennials (43%) believe the US economy will worsen next year, it is natural that the outlook for this group’s foodservice spending is also unfavorable. When looking at restaurants, 42 percent have cut back compared to last year and 64 percent are concerned about the price of restaurant meals. A positive sign, however, is that only 22 percent have cut back on their daily fix of Joe at a coffee shop. I would seem that this behavior has become ingrained in the millennial mindset, regardless of the financial conditions.
Source: Q1 survey of consumers, Oct. 2015.
While millennials are important to food-away-from home traffic and spending, the reality is that other income groups account for the highest check averages and the highest percentage of away-from-home food spending. Still, as we continue the in-depth look at the “coming” foodservice generation, it is important to understand their general attitudes. Q1 will review this group’s attitudes toward the food retail channel next week.
Questions or comments? Contact Tim Powell, Vice President of Consulting, Q1 Food and Beverage Practice.
About the Author
Tim Powell is the VP of Q1’s Food and Beverage Consulting Practice and is a regular contributor to Convenience Store News. He has been cited in NACS Magazine, CSP, The Los Angeles Times, The Chicago Tribune, The Columbus Dispatch, Advertising Age, Reuters as well as other local publications.