News

Vast majority of millennials' restaurant visits are to traditional QSRs

October 28, 2014

Despite cutbacks in restaurant visits throughout the past several years, millennials, ages 18 to 34, continue to be heavy users of restaurants, according to new research from The NPD Group.  

Millennials made more than 14 billion visits to foodservice establishments in the year ending June 2014, which translated to $95 billion spent on meals and snacks.

In a news release, NPD Group said millennials continue to command attention from restaurant operators and marketers because they make up the largest of six key generational groups, with 74 million members. The number is expected to grow more than any other age group in the next decade, mostly as a result of immigration. One in five millennials is Hispanic.

Additionally, millennials' use of social media in sharing dining experiences and their opinions of these experiences make them highly influential in building — or hurting — a restaurant brand.

"What Millennials may lack in buying power they make up for in influence," NPD's Bonnie Riggs said in the release. "They have expectations when they dine out and are quick to spread the word when their expectations are or aren't met."

QSR misperception?

Perhaps surprisingly, NPD Group's research also shows that the vast majority of millennials' restaurant visits are to traditional QSRs, versus fast casual concepts. This trend is true for both younger millennials – 18 to 24 years old – and older millennials – 25 to 34 years old – despite having different lifestyles.

Millennials did increase their visits to fast casual restaurants during the studied time period, but the number of visits made to fast casual restaurants is far fewer than their visits to traditional QSRs.

"To increase visits from millennials, restaurant operators need to meet their needs and that includes providing a unique dining experience and great service," Riggs said. "Price promotions, coupons, and loyalty programs — they want to be rewarded for their loyalty —can also be useful in encouraging more visits from this influential group."