Will nostalgic sentiment among Generation Z potentially revive struggling chain eateries?
Hitting up a chain restaurant? Time travel's never been so savory!
That's right, folks. Ana Babic Rosario, a marketing professor at the University of Denver, calls this "emotional time travel." And during these economically turbulent times when we might be edging towards a recession, those nostalgic moments become more precious than ever. "We tend to crave those comfy, old-school vibes because we think they're more stable," she says. "Our brain's just wired that way."
Case in point? Bea Benares, a 27-year-old who admits she joneses for those Outback Steakhouse dinners, the bread, and sitting with her family. "Nowadays, you hardly get to sit down and chill out with the crew at places like Sweetgreen and Cava," she says, nodding to those fast-casual eateries catering to office workers. "It kind of sucks, ya know?"
Now there's a food festival called Chain Fest that's attracting thousands of people, especially youngsters, to nosh on gourmet versions of classic chain dishes. Big names like Red Robin, Cracker Barrel, and even some "Office" actor's brainchild have been attended by 10,000 people (mostly in their 20s) in New York and a whopping 25,000-person waitlist in LA.
So what gives, chain restaurants? Is this Gen Z love affair just a one-time fling, or can they help revive your fortunes? Well, that's a tricky question, buddy. Catering to the younger crowd means serving up more innovative eats, and that's a financial gamble. After all, baby boomers and Gen Xers make up the majority of your customer base, and they're the ones who dig consistency.
According to Datassential, a market research firm, Gen Zers only accounted for 17% of patrons at sit-down, mid-priced casual dining establishments in 2024. Millennials, on the other hand, made up a cool 32%. So, if younger diners are gonna save the chain restaurant industry, they better step up their game and eat out more often at these joints.
The industry's been battling it out for a good part of the past decade because of changing tastes, delivery options, and fast-casual chains eating their lunch. It's not all doom and gloom, though. Americans are eating out less often with friends and family, so there's still hope? Okay, maybe not much, but a glimmer, right?
Several young folks The New York Times spoke to at Chain Fest admitted they enjoy reminiscing about chain restaurant nostalgia, but they aren't stacking their regular dining roster with these places. So unless the younger crowd starts pulling up a seat at these spots more frequently, it's gonna be tough to turn this ship around.
Some restaurants are tapping into this cultural resurgence and cashing in. Take Chili's, for instance. Their "Baby Back Ribs" jingle used to ignite our grandparents' hearts, but these days, viral videos of mozzarella sticks have boosted their sales. Last month, they even featured '90s star Tiffani Thiessen in their ads.
Kevin Hochman, CEO of Brinker International, Chili's parent company, has a point when he says a new generation of diners is discovering the brand and "slugging Chili's back in culture again." The stock price has even been doing backflips over the past year.
Smaller chains, like California Pizza Kitchen and Carrabba's Italian Grill, are also seeing a boost from Gen Zers. In the past five years, they've snagged a larger customer base of folks in their 20s.
So what does this all mean? Well, folks, it's a brave new world out there. If chain restaurants want to snag the attention of the younger generation and their cha-ching, they'll have to be more creative with their menus, willing to try new things, and deliver unique experiences. They'll need to do some serious cultural and culinary inevitabubble (sorry, had to spice it up a bit) if they want to survive and thrive.
Real talk, though. Nothing's gonna replace those Sunday dinners with Grandma or sharing a table with your date before the homecoming dance. Only new regular customers creating new memories with their loved ones while squeezed into cozy booths can save the darn middle-class restaurant. Food for thought, eh?
- The food festival, Chain Fest, is drawing large numbers of younger individuals, especially those in their 20s, who are nostalgic for classic chain dishes.
- In order to revive their fortunes, chain restaurants must cater to the preferences of the younger crowd, who are more inclined towards innovative and unique offerings.
- According to market research, Gen Zers and millennials collectively account for a significantly larger portion of customers at casual dining establishments compared to baby boomers and Gen Xers.
- In an effort to appeal to the younger generation, some chains like Chili's are revisiting their nostalgic jingles and featuring '90s stars in their advertisements to boost their sales.
- For chain restaurants to survive and thrive, they will need to evolve their menus, be more creatively innovative, and deliver unique dining experiences that younger customers will find appealing and memorable.
