Home Business News Gen Z spending £857 million a week on hospitality sector, despite cost-of-living crisis

Gen Z spending £857 million a week on hospitality sector, despite cost-of-living crisis

by Cass
15th Nov 22 12:12 pm

Even amid a cost-of-living crisis, new research from guest experience and retention platform SevenRooms has revealed Gen Z aren’t being deterred from spending at social media hotspots.

Almost half (49%) have visited a restaurant just because it went viral on social media, and nearly one-third (31%) will only visit restaurants that are seen as ‘Instagrammable’.

The ‘Making Booking Social’ study polled 2,012 UK consumers aged 16+ on the impact social media has on their restaurant and dining habits. The findings revealed that the social media savvy generation are heavily influenced by what they see online when choosing a restaurant:

  • 92% of Gen Z Brits are willing to travel to visit a ‘social media famous’ venue
  • More than one-third (36%) have visited a restaurant just so they could post about it on social media
  • 38% of Gen Z Brits would spend more at a restaurant that has gone viral

According to the study, it pays for restaurants to reel in the reservations from these young diners. While many consumers are tightening their belts, Gen Z continue to be big spenders. Those aged 16-24 are parting with an average of £68.02 per week in venues: 68% more than the average consumer1. Given there are an estimated 12.6 million Gen Z consumers in the UK, the group is worth a huge £857 million a week1 to the hospitality sector.

While it seems too good an opportunity to miss, the majority of the UK’s restaurants are leaving money on the table by failing to capture the Gen Z consumer through social media. 58 percent of Gen Z consumers say they would visit more restaurants they found through social media if they could book there and then.

Despite this, according to SevenRooms’ research, almost two-thirds (59%) of the UK’s best restaurants don’t take reservations through social media2. Failing to take this simple step means potentially missing out on the easily-caught cash of what could be the biggest-spending generation yet.

Danilo Mangano, Managing Director, International at SevenRooms said, “Gen Z look to be the biggest spenders yet on meals and nights out, and they are especially keen to keep with the trends they are seeing on platforms like TikTok and Instagram.

“A failure to capitalise on their appetite for the hottest restaurants would be a missed opportunity for operators to drive loyalty among this age group. With Gen Z worth almost a billion pounds a week in hospitality spend, they are a crucial audience for restaurants to tap into to drive more revenue for their businesses, something needed more than ever by the sector.

“Fundamentally, to reach these younger consumers and capture this spend, restaurants have to meet them where they are. Almost half are saying they follow restaurants they want to visit on social media, so there is a ready-made audience to target.

“For restaurants, ensuring they capture bookings is as easy as enabling a ‘Reserve’ or ‘Book Now’ button on their Instagram or Facebook page. When linked through to a direct booking platform, like SevenRooms, reservations can be set up and taken through social media in a matter of minutes.

“Most importantly, operators who leverage a direct reservations solution for their social bookings are able to capture and leverage valuable guest data — including email and phone number — growing their guest database automatically, while making it easy to market to those guests to get them to return more frequently. When used to its fullest capability, social media can drive more reservations, more orders and more revenue for hospitality operators.”

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