Clemens Food Service Trends

Generational Marketing: How Noncommercial Operators Can Keep Their Captive Audiences Coming Back for More

Written by Clemens Food Service | 9/19/24 7:46 PM

Americans are expected to spend more than $1 trillion this year in restaurants — but that’s not the only foodservice game in town. The noncommercial segment also provides convenient dining options, which are located within college and university campuses, workplaces, healthcare facilities and other environments that consumers regularly frequent.1

Profitability is a goal for noncommercial operations, yet retaining regular customers — and ensuring they’re interested enough in what you offer to refrain from dining elsewhere — can be especially challenging.

Fortunately, the consumers who dominate the different noncommercial segments share a number of demographic and psychographic traits. Noncommercial operators who manage to tailor their menus to account for those preferences — and then market their offerings accordingly — will be best positioned to achieve favorable revenue and customer satisfaction outcomes.

College and University (C&U)

Numerous students sign up for a meal plan when they enroll at a higher ed institution, and are then consequently beholden to the school’s cafeteria and other dining venues. 

Datassential research found that 63% of college and university foodservice users visit their campus dining locations at least once a week; more than half say having access to prepared food or being able to remain on campus is a key motivation.2

More than a third (37%) of students at four-year colleges, however, feel their campus dining facilities need improvement, according to a survey conducted by Inside Higher Ed and College Pulse.3

Certain dining elements can resonate with the members of Gen Z — consumers who are between 15 and 27 years old, an age range that encompasses most college and university foodservice patrons. 

Foodservice clientele at colleges and universities want healthy and fresh options, and believe they should have access to menu choices that meet their dietary needs. More than a third are willing to pay more for organic (40%) or unique items (37%), according to Datassential; 33% will shell out extra for dishes that contain locally sourced ingredients.2

Gen Z appreciates quick, easy dining choices — 59% view something they can eat on the go as a convenient option, according to a Hartman Group webinar on Gen Z and Gen Alpha food inclinations.4

Yet as Deloitte research indicates, more than two-thirds of the demographic are actively trying to minimize their impact on the environment, so a sustainable approach to packaging and other elements has become a must for most schools.5, 6

Vanderbilt University is one of many institutions that has modified operations to be more environmentally responsible. Based in Nashville, Tennessee, the university has already eliminated all single-use plastics, such as plastic bags, lids and straws, says Suzanne Herron, sustainability coordinator for Vanderbilt Campus Dining.7

An overwhelming majority of Gen Z members say sustainability and animal welfare are important factors when buying food, according to research conducted by the Ketchum PR agency, yet taste and affordability are key to the age group.8

More than a third, 35%, strive to get enough protein everyday; more than half — 53% — love trying new types of cuisines and foods. Flavor and sauce elements such as garlic and barbecue are currently popular college and university foodservice inclusions; some less traditional tastes are also gaining ground. Chipotle and jalapeño pepper, for instance, showed the strongest growth over the past year, according to Datassential research.4, 9

Business and Industry (B&I)

While corporate dining services may not contribute directly to a company’s bottom line, a convenient source of sustenance for busy employees, when well executed, can be a powerful tool for both recruitment and retention.

Approximately 59% of corporate dining revenue stems from lunch sales, according to Datassential’s B&I-focused Pulse 2024 study; breakfast makes up 23%.10

To maximize profitability and satisfaction, B&I foodservice operators may want to cater to the specific sensibilities of the generations that compose the bulk of today’s workforce: Millennials (46%) and Generation Xers (29%), per a separate Datassential report.11

Millennials consider themselves to be adventurous eaters — making them candidates to try out bolder and international flavors. Because 46% also turn to restaurants’ social media pages for information about eateries, sharing menu and other information on those venues could help B&I operators connect with diners between the ages of 28 and 43.12

Like Gen Z, environmental responsibility matters to Millennials. They pay attention to elements such as packaging — more than a quarter (29%) consider companies’ sustainability claims and actions before purchasing goods or services. Compared to other generations, Millennials also are the most likely to consider whether a food is processed before purchasing it, and they’re more prone to feel the foods and beverages they consume can impact their mental and emotional health and well-being.13

Healthy dining is the top eating-related value that all generations feel is important — particularly for members of Gen X, who are between the ages of 44 and 59 and may be seeking foods that will help support weight management, heart health and other longevity aspects as they age, according to Innova Market Insights research. Sustainability, honesty and transparency are also eating-related values the generation has embraced.14

Contract management company Sodexo has worked to address some of consumers’ health interests through its Mindful by Sodexo program.15

“In corporate services, companies like USAA have subsidized Mindful items for [its roughly 16,000] employees at 50% of the retail price as part of their robust wellness program,” says Dasha Ross Smith, Sodexo’s public relations director for brand and communications.

With nearly a dozen foodservice outlets operating across its sprawling campus in San Antonio, Texas, USAA uses Sodexo’s Mindful criteria — such as low-fat, healthy meal combinations like a salad instead of fries, for example — to determine if an item qualifies for the discount, Ross Smith says.

Healthcare

Residents and patients aren’t the only patrons that foodservice operations at hospitals, long-term care facilities and senior living communities serve; 87% also offer dining for employees and visitors, according to a 2023 Datassential report.16

At some facilities, that can add a considerable amount of complexity. Nearly 90% of hospitals, for instance, have different menus for each type of client.16

Menu quality and variety can equate to business performance for healthcare foodservice operators; more than two-thirds of patients and residents had some choice in where they last got care — and nearly half weighed the available food options when making the decision.16

Healthcare dining service preferences can vary by generation. Baby Boomers, for instance, who are between the ages of 60 and 78, often enjoy familiar foods; while 62% like trying new items, they prefer to have them incorporated into well-known dishes, according to FONA International.17

Given the generation’s typically smaller appetites, half-portion sizes may be particularly appealing. Health is also a consideration for Boomers, with nutrition outweighing novelty and sweetness in regard to their food and beverage enjoyment. 

Operators in the healthcare café/retail dining segment are adapting to these preferences by increasing the amount of health-oriented meal options they serve — and the equipment to facilitate their preparation. In fact, according to Datassential, 80% of the hospitals that are planning foodservice capital improvements intend to upgrade their food prep equipment.18

In recent years, tech solutions have also been introduced that may help enhance patients’ healthy eating endeavors.

Tech-based grocery delivery company Instacart, for instance, debuted a suite of health provider services in 2023. Boston Children’s Hospital reportedly was one of the first health systems to utilize some of the offerings — which include the ability to share personalized grocery lists with patients, instead of sending them home from an appointment with a printout of a recommended diet, and curated virtual storefronts that patients can access, featuring specific foods recommended by their provider.19

Instacart’s partnership with providers could help expand proven nutrition programs and further integrate the concept of food as medicine into standard patient care, said Sarah Mastrorocco, vice president and general manager of the Instacart Health initiative.

“We know that access to nutritious foods can deliver healthier outcomes, but a number of challenges have prevented healthcare providers from effectively adopting food as medicine programs at scale,” Mastrorocco said.

Regardless of which noncommercial segment you operate in, a one-size-fits-all approach to foodservice is rarely effective. Operators who are able to fully grasp their target demographics’ food attitudes and dining behaviors will be able to provide satisfying fare — and keep them coming back for more.

Clemens Food Group, a division of The Clemens Family Corporation, offers a diverse range of premium pork products to meet all needs, from antibiotic-free offerings to local Hatfield® pork. As Clemens Food Group Foodservice customers, businesses benefit from more than just quality products; the company provides recipe ideas, industry research, on-trend advice and customized solutions to support their success. Clemens Food Group partners with customers to ensure their businesses thrive with consistent, high-quality offerings while maintaining its commitment to animal welfare.

 

[SOURCES]

  1. State of the Restaurant Industry 2024, National Restaurant Association, 2024
  2. College & University Segment Guide, Datassential, 2024
  3. Physical Health and Wellness Linked to Student Success, Inside Higher Ed, May 31, 2023
  4. Taste of Tomorrow 2023: Navigating Food Through the Eyes of Gen Z and Alpha Report Highlights,” Hartman Group, January 2024 
  5. Deloitte’s 2023 Gen Z and Millennial Survey Reveals Workplace Progress Despite New Setbacks,” Deloitte, June 25, 2023
  6. Students May Be Campus Dining's Best Ambassadors in Sustainability,” Foodservice Director, May 28, 2024
  7. Campus Dining, Vanderbilt University, 2024
  8. Gen Z’s Relationship with Food? It’s as Complicated as the World They Live In,” Ketchum, August 15, 2023
  9. Food Trends 2024: The Fastest-Growing Flavors in College Dining,” Simplot, June 20, 2024
  10. B&I Chapter Pulse Market Overview, Datassential, 2024
  11. Business & Industry Segment Guide, Datassential, 2024
  12. 37% of Diners Use Social Media to Find New Dining Hot Spots,” PYMNTS, June 14, 2023
  13. The 2024 IFIC Food & Health Survey, International Food Information Council, 2024
  14. Generation X Trends,” Innova Market Insights, July 9, 2024
  15. Guidance That’s Real,” Sodexo, 2024
  16. Healthcare Keynote Report, Datassential, 2023
  17. Consumer Insights — Baby Boomers,” FONA International, August 2, 2022
  18. Hospital Chapter Pulse Market Overview, Datassential, 2024
  19. Instacart Announces Instacart Health Products for Providers Designed to Power Food as Medicine Programs at Scale,” PR Newswire, March 24, 2023