Are Millennials the New Tastemakers?

Millennials might be the most prodded, poked and examined generation in history. We’ve been branded as narcissistic, entitled, lazy, arrogant and politically disengaged. We’re addicted to our smartphones and overly concerned about amassing a respectable amount of Instagram followers.

These days, we’ve heard it all. The millennial hit-piece has become a literary cliché in itself, and being slapped with a stereotype feels just about as old as Katy Perry’s left shark and The Dress. But the truth is, we’re the largest age group in the U.S.—we currently represent a quarter of the population. We hold more than $1.3 trillion in spending power. And according to a recent study from RBC Capital Markets, millennials will be an important driver of success for restaurant brands.

Even if you love to hate millennials, there’s no denying that they’re quickly becoming the country’s tastemakers. Affectionately referred to as the “foodie generation,” they engage and connect with their food; whether it’s going to a new gourmet restaurant or seeking out information on ingredients. This generation craves experiences over products and customizable quality over generic quantity. They want healthy, fresh and less-processed food. They prefer socially-responsible companies. They thrive on a company’s digital engagement. And RBC analyst David Palmer believes that it’s critical for restaurant chains to adapt to these new realities in order to survive.

“What millennials want in food today is what the rest of the world will soon be asking for. To really thrive, restaurants need to learn how to cater to this important age group even more,” Palmer said.

According to Palmer, looking at the marketing and rebranding strategies of America’s largest food companies can shed light on the sometimes skewed, sometimes ridiculous and sometimes accurate view that executives have of millennials. Do they really put sriracha on everything? Do they really want kale with their burger instead of fries? Will they actually engage with brands via a hashtag?

We took a look at a few major food companies to find out how to get millennials to open their wallets:

Customizable Dishes

Millennials have an unwavering love for Chipotle, which is probably why many fast food restaurant chains have turned to customizable menu options (but let us not forget that Burger King told us long ago to “Have it your way”). In fact, a recent study by Brand Keys research found that nearly 90 percent of millennials said they look for fast, casual food that is “tastier, healthier and more customized.” The key is to strike the perfect balance of healthy and indulgent, and being able to choose between a dollop of sour cream or a bowl of brown rice makes all the difference.

McDonald’s has been experimenting with a build-your-own-burger menu—offering choices in types of bread and toppings—and it’s now bringing the “Create Your Taste” concept to nearly 2,000 locations.Taco Bell is another chain that saw an opportunity for increased profit. They introduced a new app that allows users to choose from unlimited customization options, giving them “complete access to every Taco Bell ingredient to create what they want, when they want it.” According to early reports, the app’s custom options have yielded major cash for the brand—the restaurant is seeing bills that are 20 percent higher than those ordering through more traditional methods.

Artisanal Stuff

These days, slapping the word “artisanal” on just about everything is pretty irresistible—and for good reason. Millennials are much more willing to shell out extra bucks for specific attributes in food, especially anything that’s labeled as craft, small-batch and homemade. The idea is to create an image of higher-quality and more gourmet food.

“Millennials are more aligned with the ‘food movement’ and love things like organic farms, small batch jams and artisanal cheese. This shift, by millions of people, could change the market place forever as power is shifted from large mass market companies and brands to “the little guy” selling online or at the local corner store,” Palmer said.

Pizza chains have been all over this trend, starting with Domino’s, which launched their line of “artisan pizzas” back in 2012. Other restaurants like Your Pie and Blaze Pizza have found success through their unique custom-built pizza models, complete with artisanal dough and all-natural toppings. Bonus points for adding craft beer to your menu.

Authenticity

Remember that time Beyonce wore a shirt that immortalized the most infamous leafy green? Not too long ago, kale was everywhere, and in an effort to woo millennials, brands decided to boldly enter the kale arena (like Panda Express with their Shiitake Kale Chicken Breast or Olive Garden, who threw kale into a bowl of Zuppa Toscana). Bacon and sriracha followed a similar fate, and soon they were infused in everything from beer and mayonnaise to candy canes and cupcakes.

In an effort to appeal to younger generations, many restaurants bought into the hype, only to find that diners had quickly moved on to new trends (hello, quinoa and fermented everything). Suddenly, restaurants were left with menus that were catering more to hype, and less to the things that made them good in the first place.