How Gen Z is Shaping the Future of Fast-Food Restaurants

By Jana Zschieschang
Chief Brand Officer

Quick-service restaurants (QSRs) are experiencing a significant shift in consumer behavior, with much of the change being driven by Gen Z. This generation, which makes up 25% of the population, is aged between 13 and 28 years old and is projected to become the wealthiest generation ever. Recent reports project that their spending power will reach an estimated $12 trillion by 2030, growing at twice the rate of previous generations. 

Gen Z isn’t just another group of fast-food consumers; their preferences and habits are reshaping the industry. Unlike their predecessors, Gen Z has unique tastes that QSRs must cater to in order to win their business.

At Revenue Management Solutions (RMS), we’ve collected data from recent consumer surveys to help fast-food brands understand how to attract and retain this generation’s business. Here’s what we found.

The Key Generations Driving QSR Growth

RMS’ Q3 2024 consumer report reveals a striking trend: Gen Z and millennials are increasing their visits to QSRs, while older generations are cutting back.

• 50% of Gen Z reported visiting fast-food restaurants more frequently in the past month, with millennials close behind at 36%.
• Additionally, 45% of Gen Z said they’re spending more on restaurants compared to the previous year, further highlighting their growing influence in the market.

In contrast, Boomers and Gen X are visiting fast-food chains less often and cutting their restaurant spending. For the QSR industry, this shift means that younger generations are driving revenue growth, making them the key demographic to target.

What Chicken Choices Reveal About Gen Z’s Preferences

Chicken is one of America’s favorite proteins, especially among Gen Z. RMS’ 2024 Chicken Chronicles report revealed some compelling insights about their chicken preferences:

While Chick-fil-A remains the top chicken brand across all generations, McDonald’s ranks second among Gen Z.

Gen Z prefers tenders and breaded and boneless wings, diverging from older generations who lean more towards bone-in or rotisserie chicken.

Gen Z Loves Customization

Gen Z’s desire for personalization is evident in its dining preferences.

According to RMS’ 2024 Value Meal report, mix-and-match menus are a top promotion preference for Gen Z. In fact, it’s the only generation to rank customization options among their top three promotional preferences.

This trend aligns with findings from RMS’ Specialty Beverage survey, which shows that Gen Z’s preference for specialty and house-made beverages, likely due to the customization options they offer.

How Fast-Food Brands Can Adapt to Meet Gen Z’s Demands

As Gen Z’s influence on the fast-food industry grows, restaurants need to adapt their strategies to cater to this generation’s preferences. Here are four key areas to focus on:

1.   Embrace Digital Innovation

As a tech-savvy generation, Gen Z expects seamless digital experiences. Investing in intuitive apps and user-friendly online ordering platforms is essential. Offering a fast, convenient, and hassle-free digital ordering process will enhance their dining experience and keep them coming back.

2.   Prioritize Customization

Gen Z craves personalization in their meals. Implementing mix-and-match menu options and giving customers the ability to customize orders will satisfy this demand and help differentiate your QSR from competitors. With Competitor Price Intelligence, you can stay ahead of competing QSRs by strategically pricing and positioning these popular items.

3.   Highlight Chicken Options

To tap into Gen Z’s preferences, focus on boneless wings and tenders. These options align with Gen Z’s love for easy-to-eat, flavorful meals, making your menu more appealing to this growing demographic.

4.   Create Targeted Promotions

Promotions like value meals and BOGO offers resonate with Gen Z’s need for variety and affordability. Promote these offers through digital marketing channels like social media and your restaurant apps to make sure your deals reach Gen Z where they’re most active. RMS’s Price Studio can help ensure your promotions are both appealing and profitable, by providing insights into your store’s revenue, traffic and cost impacts.

Capturing Gen Z’s Market Potential

By understanding and catering to Gen Z’s evolving preferences, you can position your QSR for success and increase your restaurant’s revenue.

At Revenue Management Solutions, we specialize in providing data-driven insights to help fast-food brands stay ahead of the curve. From menu engineering and pricing strategies to competitive research, we can help you design a tailored strategy to attract Gen Z diners.

Contact us today to learn how we can help your QSR thrive with restaurant software in the fast-evolving industry.