How Gen Zers Are Eating and Drinking Away From Home

Raised in a culture that values and prioritizes food as more than just functional, Gen Zers engage with the food and beverage industry in a wide variety of ways. When it comes to eating and drinking away from  home at restaurants, bars and cafés, Gen Zers are particularly interested in using occasions as a means of socialization and discovery. But budget restrictions are always in mind, and Gen Z must balance thriftiness with great experiences.

For Gen Zers, food and beverage occasions are inherently social

Gen Z may be chronically online, but IRL experiences and connections are important too. When going out, especially to dine in at a restaurant, Gen Zers are most often driven by socialization. More than two-thirds say that spending time out with friends or family is a reason they go out to eat, with 36% saying it’s “almost always” a reason. Notably, Gen Zers are more likely to cite this as a reason for going out to eat than they are for going out for a drink, with or without alcohol.

But other motivators  are leading Gen Zers to dine out, such as treating oneself or craving a favorite dish, cuisine or beverage, suggesting that motivations are multifaceted and situation-specific. What type of food are they looking for? This generation most often seeks American food at restaurants, but Mexican, Chinese and Italian are also favored by more than half. Beyond that, the presence of cuisines such as Korean, Indian and Vietnamese on the list reflects Gen Z’s interest in varied cuisines from across Asia. Middle Eastern and Pan-African food also appeal to these foodies, and responses also showed a taste for everything from Ecuadorian to Mongolian cuisines.

Of note, the establishment itself (rather than what it serves) is a bigger motivator for bars than restaurants — Gen Zers are more likely to say that supporting an establishment they want, experiencing a reputable location or being in the know about the industry culture is more of a motivator when going out for alcoholic drinks than for other occasions.

A plurality of Gen Zers try at least two new restaurants, cafés or bars a month

While Gen Zers like to get food from restaurants, budget is still an issue for these younger, less-established foodies. Likely as a result, the restaurant types they most frequent are fast food, fast casual and coffee shops or cafés, all of which serve food and beverages at a relatively low price point. 

That doesn’t mean they’re against exploration though. Over 70% said they had tried at least one new restaurant in the last month, with nearly 1 in 5 saying they had tried at least five.

The most frequent area of exploration is bars: almost one-quarter of Gen Zers ages 21+ said they tried five or more new bars or places for alcoholic beverages in the last month. Of course, some of this may be due to a lower barrier to entry — patrons may visit multiple establishments in one outing, while it’s far less likely to have a meal at more than one restaurant in a night. But it also suggests that despite signals that Gen Zers drink less than their generational counterparts, they are still frequently socializing at bars, pubs and the like.

Despite purchasing from QSR and fast casual often, Gen Zers are less convinced of their value

Gen Zers favor lower-priced establishments over fine dining for budgetary reasons: 81% say they purchase from a fast food or QSR restaurant once a month compared with 51% who say they visit a casual dining establishment. 

But frequency alone doesn’t indicate that they see QSR and fast casual restaurants as a good value. In fact, among all generations, the perceived net value for both of these types of brands is lowest for Gen Zers. The good news is it’s still positive — the generation is more likely to say QSRs and fast casual brands are a good value than not — but net value rests around 8 points lower than it does for Gen Xers and 6 points lower than millennials.

Given the breadth of options Gen Zers have for food and beverage, these brands must be aware of the fact that low price doesn’t necessarily equal good value for this cohort, meaning they may be tempted to explore other options that fit their budget should they become available.