Analysis of the factors for the young people

 Price
 Quality
 Loyalty
 Pleasant ambience
 Product assortment
 Convenience
 Nutrition
 Types of food

Price:
1.It found that millennials eat out an average of four times a month; in cases of
affordable food, 36% of millennials are willing to pay more in restaurants for
outstanding service.
2. That translates to middle-income urban millennials spending roughly 10% of their total
food expenditure, or Rs7,914 ($124) annually, on dining out—purchasing cooked meals
from restaurants, caterers, and canteens—according to Nielsen. In fact, it gets better with
the affluent millennials, who spend Rs11,461 ($180) annually, roughly 13% of their total
expenditure on food
3. These free-spending affluent Indian urban households are increasingly giving food
chains a reason to invest more in the country’s growing food services market. This is
likely to boost the sector from Rs3,09,110 crore ($48 billion) in 2016 to Rs4,98,130 crore
($77 billion) by 2021, according to a report by the National Restaurant Association of
India (NRAI) and consulting firm Technopak.
4. According to a survey by Franchise India, 34% of the people eat out two to three
times a week, while 27% eat once a week, about 11% eat three or more times a week,
12% eat once a month, 3% eat on special occasions, while 12% love to eat daily at a
restaurant.
5. “dealing with a great deal of STRESS on an everyday basis,” spend an average
Rs2,746 ($39) every month to dine out or get their food delivered home, according to a
report released by the National Restaurant Association of India (NRAI) on May 10

Nutrition:
1. Restaurants who are transparent about their ingredients and product claims, and serve low
fat, low carb, a gluten-free, sugar-free, little salt, no trans fats, GMO-free, no corn syrup,
Carmine, and additives foods in their menu will usually find themselves in the good
books of consumers and enjoy regular patronage
2. Their idea of health, too, is not just limited to low-fat foods. It is more all-rounded. They
give a priority to vegetables, especially avocados. The way we eat is now more focussed
towards buying organic. The rise of veganism is another indication of the changing eating
habits of millennials. They prefer plant and seed-based food, rather than consuming meat.
 Product assortment:
1.The inclination of changing the food habits of millennials towards experimental tastes is
good news in the restaurant industry. This is encouraging home-grown as well as
international players to expand their menu and geographical presence. Many global
food chains like Burger King, Taco Bell, Dunkin Donuts, Jamie Oliver, and Carl’s Jr have
entered India over the past few years with specific cuisines and product offerings
2. Food from the Indian sub-continent is being explored in greater depth. Food from
Assam, Bihar, Kolkata and other such states is making its way to South India, while
Dosas and uttapams are traveling to the hills. The exchange of food is happening not just
between different countries and India but within the various states of India as well

Loyalty:
1. Our data indicates that 63% of restaurants still don’t have a POS system in place. This is
the first block in the foundation of a successful restaurant in general, let alone a restaurant
loyalty program

2.Most Millennials are motivated by fairly straightforward rewards rather than

member perks such as reserved parking, secret menus, or free entertainment downloads,
the survey found:

 81% of millennials prefer free/discount food for their loyalty

 63% of millennials prefer a free/discount beverage
 31% find a speed line attractive in driving loyalty

When loyalty programs are difficult to use or don’t provide rewards with a perceived
value, Millennials are quick to drop out.

Here are the top seven reasons Millennials quit loyalty programs, according to software
advice 59% rewards aren’t valuable enough

 57% discounts aren’t high enough

 50% rewards took too long to accrue
 32% not enough reward variety
 27% program is too complicated
 24% received too many messages about program
 14% the program didn’t offer a smartphone/tablet app

For years, Starbucks has been the gold standard for customer loyalty programs because
customers could choose their reward and when to use it. The program works with a
smartphone app, allowing customers to combine everyday use with payment. Not
surprisingly, most millennials prefer to use an app on their smartphone or tablet to earn,
track and redeem loyalty rewards.

Here’s the breakdown, according to Software Advice:

 40% prefer using a smartphone or tablet app
 38% prefer a loyalty card
 16% prefer providing an ID at checkout
 2% prefer using a disposable punch card

Convenience:
Convenience can be achieved by setting up delivery systems, starting meal plans and
using technology to make the entire dining experience more convenient
The Toast Restaurant Technology in 2016: Dining Edition report, a survey of 1,100
diners released today, demonstrates yet again that they want restaurants to have great
food, great service and great technology
As convenience is related to technology. technology makes the process smooth and
efficient also according to the survey we can say that
79% of respondents also said technology improves their restaurant experience. Within
restaurant technology, online reservations were deemed most important, followed by free
wifi and online ordering. As for touch-screen kiosks,

Also CMS report state that Nearly a quarter of restaurants expect to introduce the option
of dining with a virtual companion via an interactive screen .

With 25% of millennials saying they will pay more at a restaurant if its social media
ratings are good, as a big majority of millennials use social media they will want to share
their experiences at the restaurant they are at.

The technology improvements most wanted by millennial respondents are; the ability to
order food and drinks before arriving (47%), paying via an app (44%) and ordering food
electronically at the venue (34%). Internet payment company PayPal has created an app
that allows people to order their food from their phone before they get to the restaurant.

Research from the report shows 52% of restaurateurs have implemented technology to
enable food and drink ordering in advance of arrival and 39% to let customers pay their
bill online or through an app

Quality:
Eight in 10 Millennials (80%) agree that when it comes to buying food, quality is
important to their purchase decision. This appears to directly impact how they spend their
money: 68 percent of Millennials agree that they are willing to spend more for high
quality food products. To put this into context of the other ways Millennials may be
spending their money, 69 percent of this group say they spent more money on food than
they did on travel last year.
 This emphasis on quality goes hand-in-hand with another aspect of food shopping: how
food products are sourced. More than six in 10 Millennials (65%) say that transparency in
food sourcing is important to them and the same number (65%) say they prefer to buy
from brands and products that use responsible sourcing practices. In each of these
statements, more Millennial parents expressed that it was important to them that food
products be sourced in a responsible and transparent manner.

Other insights from the study:

 Quality and convenience rise to the top as key factors in millennials’ food choices and
52 percent say they will pay more for ready-made meals that are high quality and healthy
 
 71 percent of Millennial parents agree they make an effort to cook new dishes (vs.
62% of Millennials)
 
 50 percent of Millennials overall agree they seek out food and beverages that are
made with less packaging and plastic

Source - YouGov

Types of food:

These are the different types of food that young people want in their menu

 Spice it up with different flavor profiles

 Use bolder flavors
 Introduce multicultural influences
 Try new twists on comfort foods
 Increase focus on protein offerings beyond traditional menu items
 Offer vegetarian options
 Emphasize natural and fresh
 Increase availability of portions for sharing
 Provide greater variety

Pleasant ambience:

Millennials believe that “a new experience” is an important feature when choosing a place
to eat, according to 53% of respondents, with 52% saying they value unique food and
36% that they would pay more for outstanding service in a restaurant.

Many millennials want to show their peers through social media such as Instagram what
food they are eating and how different it is. Creating this experience-based atmosphere
can make restaurants stand out. Whether it is a unique décor, live entertainment, game
night, a paint-and-sip event or an eclectic menu, offering more than just a meal can turn
dining into an experience.

One example of creating an experiential dining experience for millennials would be

through augmented reality (AR) and wearables. A next-generation ordering application
based on AR might let people “sit down” to a virtual meal as a way of making a menu
selection.

For example, UK ramen chain Wagamama is using augmented reality to allow diners to
scan their placemats with smartphones to virtually visit music festivals, watch art being
made, explore menu details, vote for their favourite dishes and “like” Wagamama on
Facebook