Better for You
Gen Z sensibilities will transform your store.
John W. Martin and Matt Thornhill
Recently, one of our associates told us her 13-year-old daughter, Anna, had announced that she was now a vegetarian. Specifically, she wasn’t going to eat red meat because “it’s not good for you.”
Anna is a member of the youngest generation, currently labeled Generation Z (which they don’t particularly like). Her desire to replace red meat with options that are better for her is not surprising. It’s one of the early characteristics emerging in this still-forming cohort.
Introducing Gen Z
Gen Zs are those born after September 11, the day a “new normal” began in America. There are a few more years before we’ll officially reach the end of Gen Z and the start of another generation (Gen A?). That means those in the leading edge of Gen Z today are 15 to 17 years old.
Academics tell us members of a generation, by definition, share many of the same formative events during their “wonder years” that set them apart. It is at this stage of psychological development that a child who takes everything at face value begins to transform into a fully-formed adult who can see nuance and shades of gray. The happenings on the world stage and in society and culture during this “awakening” imprints the generation, forming overarching values and traits.
Millennials experienced their coming of age from the late 1990s through the mid-2010s. Gen Zs are experiencing it now. That means, for example, Gen Zs will be shaped more by Trump’s presidency and what follows much more so than by Obama’s presidency.
Given that more than half of Gen Zs are not yet 10 years old, it’s premature to identify all the defining events that might lead to generational characteristics. However, there are some early signals we’ve been following that likely will have an impact on c-stores sooner than later.
To start, Gen Zs are being raised by protective parents in a world that is growing more dangerous. Routinely exposed to the horrors of terror attacks and gun violence, this generation is being imprinted by a feeling of vulnerability. Not a week goes by without something horrible happening to innocent people somewhere in the world. The result is a generation that is hyperfocused on safety and security. This characteristic will drive their food choices in the future.
On the cultural front, Gen Zs are coming of age when we are shifting from a majority-driven world into one shaped by multiple identities. What once were binary defining characteristics—man or woman, young or old, black or white—are now multiple choice with regard to gender, generation and race. These multiple identities are creating a more pluralistic society where there’s a place for everyone. America is no longer a melting pot where everyone blends together. Rather, we are more like a bento box, the Japanese-style food tray with separate compartments. There is a special place for each of us. We each have our own identity, and none is better than another.
One outcome of this shift is that Gen Zs will most likely have a “big tent” perspective in which everyone is special and also has a place to belong. They won’t view the world as “us vs. them,” but as “us and them.” It won’t be either/or, but both/and.
Summing up, initial traits of Gen Zs include a safety and security mindset and living in a world that’s remarkably diverse and intensely inclusive. For c-store operators, it means food programs must be 100% safe, especially hot and made-to-order offerings. Cleanliness, perfect inspection scores and a demonstrated commitment to providing safe options will matter to Gen Zs. Speaking of options, they’ll want choices—something for every palate and taste profile. Offering flavors, choices and the ability to personalize will drive sales.
Informed Consumers
Beyond societal and cultural shifts, Gen Zs also are being shaped by their upbringing. Primarily their parents are Millennials, the first generation that can tap into the collective wisdom of the mommy blogosphere. Best practices, tips and guidance are only a few clicks away for even the least confident parent. This means parents can be more effective at teaching children how to make smarter food choices.
On top of this, Michelle Obama, schools, and the food industry itself have been emphasizing the importance of healthier food options for kids. Anna, who gave up red meat because it’s not good for her, is representative of those who are getting the message.
Kids today want to be safe and secure with what they put in their mouths. No longer are they automatically drawn toward sugary sodas, candy and empty-calorie snacks. Instead, they are reaching for bottled water, fresh fruit and made-to-order items.
Gen Zs will make purchase decisions by looking at the ingredient list, and the fewer the items, the better. In response to this shift, traditional food companies have either introduced new, healthier options, or purchased smaller companies that were health-focused pioneers, as in the Hershey Foods acquisition of Amplify Snack Brands, makers of SkinnyPop.
SkinnyPop contains only three ingredients: popcorn kernels, sunflower oil and salt. The list is so short that the promotional materials focus on what’s not in the bag: artificial ingredients, GMOs, gluten, dairy, peanuts, tree nuts, preservatives, artificial flavors and trans fat.
This marketing approach makes sense for younger generations, who have grown up in a time when trust has diminished. Pew Research has been tracking people’s trust in others since the mid-1990s. Younger generations are considerably less trusting, and although there’s little data on Gen Zs yet, we suspect they will be even less so. Throughout their entire lives they have heard stories about fake news, lying corporations, crooked politicians and school shootings. Who can be trusted?
Better for You
Your store’s future with food needs to include more options that are indeed better for the customer. By the way, be careful when making claims that some food options are “healthier.” This term could drive untrusting younger consumers to fact-check you (on the spot, with Google providing an instant sale-crushing answer). Remember, they don’t trust anyone.
On the other hand, a claim such as “better for you” is less likely to draw scrutiny. You can define this term several ways. You can take the SkinnyPop approach and offer foods with a shorter ingredient list, or you can start stocking products straight from a local source. Fresher is better. Another approach might be possible thanks to the advent of blockchain technology and the ability to track and verify food ingredient origins and farm-to-shelf transit. Gen Zs might one day have an app that allows them to scan a banana or a bag of kale chips and instantly know the backstory of where it was grown and how long it took for it to get from source to your store.
In fact, the sooner you can provide information like that, the better for your bottom line.
John W. Martin and Matt Thornhill of SIR’s Institute for Tomorrow share insights on the key demographic trends impacting convenience stores. This article is part of a series of regular articles in NACS Magazine about what convenience stores need to do today with employees and customers to win tomorrow.
Kids today want to be safe and secure with what they put in their mouths.
Gen Zs will make purchase decisions by looking at the ingredient list, and the fewer the items, the better.
Be careful when making claims that some food options are “healthier.” This term could drive untrusting younger consumers to fact-check you on the spot.
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