Convenience-store retailers who understand the attitudes and habits of Gen Z will have the edge on competitors.
This insight comes from the recent report Winning Generation Z from CSP research arm Technomic.
“The good news is they [Gen Z] appear somewhat less demanding than their millennial predecessors,” Technomic said, adding that its Ignite Consumer data shows morning c-store foodservice use is an area of strength and continued opportunity with this generation, defined at those born between 1993 and 2004.
Research shows Gen Z consumers are distinct from the generation above them, millennials, the report said.
And when it comes to breakfast/morning snack foodservice occasions at c-stores, Gen Z stands apart:
- Monday through Thursday, just 49% of Gen Z visits c-stores for this occasion, versus 61% of all other cohorts.
- Friday through Sunday, however, 51% of Gen Z visits c-stores, versus 39% of all other cohorts.
- The median spend for Gen Z in this occasion is $12 versus $8.50 for others.
Weekend Beverages
Many Gen Zers might avoid traditional hot-dispensed coffee on weekends, but they more than make up for it by hitting several food and beverage stations for their morning meal, Technomic said. In particular, they gravitate to made-to-order and frozen beverages more than others.
“Made-to-order is a significant part of these trips, both for food and beverages,” Technomic said. Because one-fourth of Gen Zers’ morning visits include a frozen dispensed beverage, it’s important for retailers to offer appealing options and flavors in the morning to engage these keep these customers.
For example, in the percentage of Gen Zers versus all others selecting fresh prepared beverages:
- Carafe/hot beverage dispenser: 36% for Gen Z versus 51% all others.
- Made-to-order beverages: 29% Gen Z versus 14% all others.
- Fountain/cold beverage dispenser: 26% Gen Z versus 25% all others.
- Frozen beverage dispenser: 25% Gen Z versus 18% all others.
Not Big on Bakery
Gen Zers are more inclined to buy from the cold grab-and-go case rather than the bakery case.
When it comes to breakfast/morning snack foodservice need states, better-for-you options are selected by 30% of Gen Zers but only 25% of all others.
“Younger consumers carry a much broader and holistic definition of health, giving operators considerable latitude when considering grab-and-go assortment,” Technomic reports. “For example, items with functional ingredient callouts (e.g., turmeric for anti-inflammatory purposes) carry above-average appeal for Gen Zers.”
Regarding where breakfast/morning snacks are eaten, 28% of Gen Z choose “in the car driving” versus 36% of all others, while “in the car parked” is 23% of Gen Z and 25% of all others.
In addition, three in 10 buy roller-grill items, Technomic said, adding that playing up these offerings’ high-protein content builds morning appeal.
Strength in Numbers
The report also found that morning occasions are more likely to contain a social component for Gen Z, with 52% of them visiting a c-store with two or more people versus 41% of all others.
“This may provide an opening for retailers to position breakfast or morning snack items as shareable options or perhaps portions large enough to satisfy more than one shopper,” Technomic said.
Finally, while the top considerations (food quality and taste, accurate order fulfillment, clean facilities, friendly service) when selecting a c-store for foodservice are the same for Gen Z and all others, there are a few areas of more interest to Gen Z:
- 55% of Gen Zers say it’s important for a c-store to offer online/mobile ordering capabilities versus 47% of all others.
- 53% of Gen Zers want mobile/smartphone payment ability versus 49% of all others.
- 49% of Gen Z want free Wi-Fi access versus 43% of all others.
“Gen Zers express above-average interest in a few key areas that can be explored by operators and suppliers alike,” Technomic said.
This survey took place from first-quarter 2022 to first-quarter 2023.