DELICOSA RESTAURANT

A report on Attracting Gen Z customers

Afolabi Adio
  
 1. Executive Summary

For business owners and marketers knowing the differences and personality traits of each generation
is part of the challenge. Gen Zs simply do not respond to offers and marketing campaigns the same
way other generations do. Understanding Gen Z audience helps us craft the right message on the
right channels.

2. Introduction
This report is to examine and recommend how to make the newly launched Delicosa restaurant
appealing to the Generation Z audience. The information in this report will be gathered from
marketing books, market reports, journals, social media and company reports. The report will analyze
Gen Z consumer behavior as well relevant marketing theories.

3. Market Trends Analysis 

With Generation Z beginning to outnumber Millennials, Generation Y and the generations prior to
that, Marketers and Strategists have begun to anticipate a change in consumer behaviour (Varsha
Jain, 2014). The focus of the market will be on the Gen Z market segment, Gen Z will comprise of
people born between 1996 and 2010.

Delicosa will be operating within the fast-casual niche of the restaurant industry. They will be offering
fast food as well as more traditional sit down restaurants.
The market segment is focused on the distinct Gen Z group
 Generation Z both spend an outsized portion of their income on eating out, mobile devices
 The Gen Z researches extensively about the place they wish to dine at. They like to plan their
meal in advance.
 They also look for more healthier and pocket-friendly options when dining out or ordering food
online.
 Also, Gen Z prefers eating at an off-peak time if they are offered some discount. This is also
great for any restaurant owner to increase sales during off hours.
 The attention span of Gen Z is also significantly less. Thus, coming up with eye-catchy
restaurant marketing campaigns that deliver the message quickly is important.
Delicosa operates within the relatively new fast-casual segment. This segment has grown in response
to the increased need for quality food, in a sit down environment, but with fast service. This is a
recognition that many of the customers are dining out because they do not have the time to cook
themselves.

Gen Z buying patterns typically revolve around several different factors:

 Technology: Gen Zers have no recollection of a world without cell phones,

computers, or the Internet. They are educated in tech-saturated schools and are
most comfortable communicating with each other via technology. If Delicosa is going
to capture this market, they need to have a strong digital presence.
 Diversity: Gen Zers have grown up in a multicultural world and embrace food
diversity. This generation is quite adventurous with food wants to try ethnic foods. If
the menu offers a mash-up from multiple cultures, all the better.
 Health: Gen Zers are health conscious and will most likely align with brands that
support healthy causes and planet friendly initiatives.
 Urgency: Gen Zers want things now. Strategies such as a mobile presence or pay-
at-table, will help attract this generation.
 Individuality: Gen Z wants to feel special. One size does not fit all. Creating a one-to-
one way of reaching out is an effective way to appeal to this generation.
4. Segmentation, Targeting and Positioning (STP)
Buyers in any market differ in their wants, resources, locations, buying attitudes, and buying
practices. Through market segmentation, companies divide large, diverse markets into
smaller segments that can be reached more efficiently and effectively with products and
services that match their unique needs (Armstrong et al., 2017)

The theory of Segmentation Targeting and Positioning is about dividing the market audience into
distinct audience based on different buyer traits, target the selected customer segments according to
the buyer traits and preferences then position the company’s marketing strategy to satisfy those
buyer traits and preferences.

Segmentation

Delicosa Restaurant will through segmentation determine what will be the market, its size, what part
of the market to focus on and importantly, how the market will be divided. The market will be
segmented using
 Demographics; Delicosa restaurant will be looking to cater to people of a certain age, referred
to as the Generation Z, therefore the market will be segmented on the basis of the variable of
age. This will be combined with behavioral traits to get valuable insights to better understand
their buying personality.

Targeting

The target market will derive from the customer segments selected from the market segmentation
(Gen Z). The is a very important stage because it will determine the product offerings, location,
ambience of the restaurant.

Positioning

With the target group of Gen Z decided on, the next task is how to reach out to them. What message
can be passed across to them to give them an idea of the restaurant’s offerings. The value
proposition will give a clear and succinct information about what Delicosa is offering its target
audience. Information about its menu offer, type of service, the cost of meals, ambience and why the
restaurant stands above competition.
 5. Customer Persona
Ade Student
“I need to be able to go somewhere to relax,
re-focus, and get inspired without breaking
the bank”
A DAY IN THE LIFE OF ADE
•Early mornings, afternoon hangouts, late
night dates describes his daily routine
•He goes to school and works freelance jobs
•He’s a carefree college student
•His house is never in order, fridge is empty
and he’s always buried in his laptop
 He takes the train or ubers everywhere
BACKGROUND
 21 years old
 Single
 Lives in Central London
 Full time Business management
student, part time worker
FINANCES
 Household income of £30,000
 Super conscious on what he spends
his money on
 Prefers to use his credit/debit cards
ONLINE BEHAVIOUR
 Facebook is his lifeline
 Active on Instagram, twitter and tiktok
 Looks for coupons and good deals on
cool new experiences or restaurants
WHAT HE’S LOOKING FOR
 A place to de-compress after a hectic
day/week
 A cool place to work on his laptop
not distracted by his messy room
 A good deal to make him feel better
about purchases
 Cool new experiences or adventures
WHAT INFLUENCES HIM
 His friends and colleagues
 Social media
 Magazines, blogs and articles
MAKE HIS LIFE EASIER
 Funky atmosphere that’s inviting and
relaxing
 Deals and coupons
 Cozy seating with plenty of charging
stations
 Order meals to-go online or through an
app
 Social media engagements incentives
for discount
6. Recommendations
Marketing Mix Recommendations
(Marketing Mix)
Product It will be pointless to
develop a product that
Gen Z’ers are unwilling to
buy. Delicosa have to
take time to develop
quality products that is
responsive to the needs
of its desired target
market.
The product is food, The
visual presentation
matters a lot to the target
audience. Product profile
should include Street
food, chicken, vegetarian
and non-vegetarian
menu, snacks and pizza.
Presentation and quality
need careful
consideration. Food
quality and ingredients
must meet customer
needs.
Price This is the value of the
menu in monetary terms.
When Setting a price for
dishes in the restaurant`s
menu, management must
understand how much the
target customers are
willing to pay for such
product. The pricing
strategy must be
reviewed often to ensure
product pricing reflects
the brand and position in
the market. Price must be
competitive not
necessarily meaning the
cheapest
Promotion For promotion strategy,
the restaurant should
adopt a 3 pronged
approach of
1. Advertisement:
Justification - how Academic marketing
does this meet Gen Z theory to support the
customer needs? recommendation
Don’t try to sell a Benz Product is the most
when all the customer important element of
wants is a Volkswagen. the marketing mix.
The product must always The entire marketing
be tailored towards strategy of the
customer needs. It must company is centered
provide value for the around its product
customer. offering. Marketing mix
They must be given what planning begins
they want not what the with building an
restaurant think they offering that brings
want. value to target
customers. This
offering becomes the
basis on which the
company builds
profitable customer
relationships
(Armstrong and Kotler,
2017)
Gen Zs are price price is the sum of all
sensitive and consider the values that
cost over any other customers give up to
generation. They will pay gain the benefits
for only what suits them of having or using a
and have low brand product or service
loyalty. Hence the (Armstrong and Kotler,
constant review of 2017)
pricing strategy. Price positions the
business in the
market. The price
determines the
expectations of the
customer. The higher
the price the higher
the expectation
The promotional channel Promotion refers to
must grab the attention activities that
of the target customers communicate the
and easily relatable. Gen merits of the product
Z are digital natives and and
 Social media
channels should be
exploited.
Platforms like
TikTik, Instagram,
facebook. Also
magazines and
blogs
2. Sales promotions:
Customers should
be rewarded with
loyalty schemes-
Discount coupons,
gifts, meal
vouchers
3. Word of mouth:
Place This represents the
channel used in delivering
product to the customer.
The location of the
restaurant must create
convenience for the
customer. Because we
are in a digital age and
the target customers are
digital nomads the
concept of place will be
expanded across multiple
channels: Place will cover
online presence where
the product can be
accessed. In addition to
physical interaction where
customers physically able
to get the product.
In selecting a location, the
following should be
considered
1. Competition
2. Customer access
3. Population of the
target audience
Process The systems and
procedure put in place by
the restaurant in
delivering its product from
the serving time, payment
systems and overall
operations should
the most relatable persuade target
platforms to reach and customers to buy it
capture their attention is (Armstrong and Kotler,
social media. They are 2017)
also lovers of loyalty Communicating what
programs. a company does and
what it offers
customers is very
important, from
branding, advertising,
PR and special offers.
The result of
promotion is to
capture the attention
of customers and give
a consistent
Because Place serves Place refers to the
as the distribution point distribution of the
for the business i.e that product and the
is the product can be availability of the
purchased. It only makes service. (Armstrong et
sense that reaching the al., 2017)
Gen Z target audience The ambience and
will be easily achieved location of the
by situating the location restaurant should
of the restaurant around relate with the target
schools of higher customers.
learning because they
hold a sizable number of
the GenZ population.
The process of Process must overlap
delivering a service is with customer
very important for experience. It must be
customer satisfaction. seamless and specific
Customers are only to achieve a smooth
interested in if the customer journey.
system works, the
 prioritize technology
innovation from online
ordering, POS terminals
and self-operating
payment systems in
addition to adequate
information updates.
Process should be in
place for:
 Customer delivery
 Customer service
 Resolutions
 Incentives
 Feedbacks
People Delicosa must be
deliberate about how they
want their employees to
impact the business.
Because the reputation of
the restaurant rests in
people’s hands, the
business must hire skillful
people, appropriately train
them and keep them
motivated to have the
right attitude.
Customer facing
employees must be
effectively managed to
ensure the right quality of
service.
Physical The impression an
Evidence organization gives in
terms of physical
evidence must equate the
customer’s assumptions.
A restaurant space with
clean tidy well decorated
lounge area can be
reassuring for the Gen Z
target audience. It doesn’t
stop at the store space
alone products (the food),
receipts, packaging, bags
and other branded items
that can be seen and
touched.
efficiency of service and
adequate customer
support. The Gen Z
audience is mobile and
would prefer self-
servicing/mobile
channels
Customers usually can
not separate the product
or service from the
employee who delivers
it. This goes to show the
importance of people to
the company. The target
audience are lovers of
value-added services e.g
advice/recommendations
in selecting products
If the premises and Physical evidence
packaging of the communicates
restaurant is not up to messages about
standard, the perception quality, positioning
of the customer with and differentiation,
regards to the product and it helps both to set
offered will be poor. and meet visitor
The customer cannot expectations.
experience the product (Middleton, 2017)
of the restaurant before
purchase. Feedbacks
from other people who
have purchased and
used the restaurant’s
services can serve as
reference materials.
 7. Customer Journey Mapping
Experience maps look at a broader context of human behavior. They show how the organization fits
into a person’s life (J Kalbach 2016). The map shows the physical and emotional steps a customer
goes through when interacting with a company in achieving a particular goal. Customer journey map
matches customer expectation with delivery.

Benefits of CJM

The customer journey map shows how customers move through the sales process (from customer
awareness to when the customer takes action). This information helps the organization in maximizing
sales and also understanding customer experience.

While engaging in a customer journey map process, its is possible to see time consuming activities
for the employees or even expensive for the organization but yet adds little or nothing to improving
customer experience. Such activities and expenses can be removed, improving operation
inefficiencies, cost saving and an improved customer experience

Customer Journey Map Overview

My CJM will consist of 4 stages of Pre-ordering (Awareness & consideration), ordering (conversion),
Consuming and Sharing (retention and advocacy) reflecting digital platforms. The map will offer a 360
degree view of customer feedback. Experience will be measured in places:

 In-App
 Web-site
 On-site
Customer Journey Map
References

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