It may be the summer of the meal deal, with pretty much every QSR and fast-casual restaurant offering combos for lower prices due to consumer demand, but price may not be the only reason for the warm weather sales slump experienced by most restaurants.
A new survey by experience design agency ChangeUp revealed surprising results for Gen Z fast-casual diners under 35; 78% of respondents “would dine out more often if it were more enjoyable.”
The report, entitled How Much Does Experience Matter to Customers, is based upon ChangeUp’s Q2 2024 survey of over 500 people across the U.S., who had visited a fast casual or casual dining restaurant in the past three months.
Over one-third of guests were found to “often feel disappointed with the restaurant experience when dining out,” with 68% of those surveyed also believing that a desirable experience is “more important than price and convenience.”
Shake Shack is one fast casual who is bucking the meal deal trend and embraced diner experience, and despite their higher price point than most burger joints, sales continue to soar.
Shake Shack CEO Rob Lynch recently told QSRmagazine“it’s about holistic guest experience. Food quality, taste is part of that, enlightened hospitality and how we make the guests feel is part of that. The convenience, accessibility and speed are also part of the holistic guest experience. And we’re just kind of putting those up the ladder in the order of prioritization.”
Bill Chidley, executive director of strategy at ChangeUp, explained to QSR Insider why experience matters so much to the Gen X age group, attributing it to three main factors. (Lightly edited for clarity).
“Post-pandemic appreciation, (since) after enduring extended periods of isolation and home dining, people have developed a renewed appreciation for the social and experiential aspects of dining out. The simple act of sharing a meal in a vibrant atmosphere has taken on new significance,” Chidley told QSR Insider.
“Followed by increased competition with the abundance of dining options and delivery services at consumers' fingertips. Restaurants must offer more than just exceptional food to stand out. The experience has become a crucial differentiator in this competitive market,” Chidley added. And lastly, “as change is the only constant, people are increasingly seeking stability and connection through memorable experiences. Dining out has evolved into an opportunity to create lasting memories and forge deeper connections.”
So just how does a fast-casual restaurant create an environment for customer connection, improving the guests’ overall experience?
“Restaurants need to strike a balance between innovation and authenticity,” said Chidley.“They should focus on creating immersive, multi-sensory experiences that can compete with the digital world's allure while still prioritizing food quality, genuine hospitality, and opportunities for meaningful social interaction.”
When it comes to marketing, he added, “effective restaurant marketing must focus on storytelling and setting expectations that go well beyond the menu. The key is to showcase the holistic dining experience. Marketing strategies should emphasize the sensory and emotional aspects of dining out. Visual storytelling and social media are crucial in this context.”