Back in early July, the latest Taste of the Nation report from business advisory firm Deloitte and BDRC Continental was released, attracting a certain amount of attention from the hospitality press.
Here, H&C News takes a slightly deeper look at what the report has to tell the hospitality sector – and the significant implications. And we recommend that you take a look for yourself, and consider the implications for YOUR business.
Generation Y – the social media generation – leads the way
The report revealed that the average UK consumer is going out for food and drink on 19.8 separate occasions per month, up 13% against the same time last year. This is being driven by Generation Y (18-34 year olds), which is now going out 32 times a month, up from 25 a year ago. That’s twice as often as 35-54 year olds (16 times a month) and more than three times as often as the Baby Boomer (55+ years) generation (10 times a month).
Jon Lake, a corporate finance director in the licensed retail group at Deloitte, commented:
“The going out market remains resilient owing to Generation Y’s more carefree lifestyle and a touch of ‘austerity fatigue’. They expect to go out even more over the next six months, which demonstrates just how ingrained going out is in their lives. It is a lifestyle, not a luxury, and has become embedded in their culture.”
Users of social media
John Lake continued:
“Generation Y also tend to be heavy users of social media and are highly adept at seeking out online offers to fuel their lifestyle. Operators have been very successful in targeting this particular audience and should continue to do so as they are long-term customers.”
Overall:
- 37% of consumers refer to social media to inform going out
- 33% consult review sites – primarily to search for discounts
- 21% consult a social network (such as Facebook or Twitter).
For Generation Y – the most ‘connected’ consumers – the overall figure increases sharply to 61% referring to social media.
The level of engagement in social media varies according to sub-sector:
Clubs – the perfect forum for Generation Y customers – well ahead with over 50% using review sites, over 40% using social networks
Formal & fine dining restaurants – nearly 40% use review sites; over 20% use social networks
Coffee and sandwich shops – where you might expect less planning and fewer offers – still score 20% for review sites, 10% for social networks
Which social media are most used?
The report gives clear percentages, though some may surprise you:
Facebook 20%
EATOUT 20%
TripAdvisor 18%
Taste 17%
Top Table 16%
TimeOut 16%
Beer in the Evening 15%
Twitter 13%
London Eating 13%
UrbanSpoon 13%
Cheese and Biscuits 13%
SugarVine 12%
Use of review sites
For nearly 25% of consumers surveyed, the use of review sites was to seek discounts; 7% wrote negative comments; 15% booked because of a review; and 14% did not visit because of a review.
Positive word of mouth works and, for those brands that have built loyalty, negative comments may even be defended by their customers.
Interestingly, only 32% of consumers agreed that review sites are trustworthy, perhaps reflecting awareness that reviews and experiences are subjective and can vary widely, or simply that the discount on offer is more important than the review!
In conclusion
The report is very clear:
“A social media presence is clearly important in the going out decision making process…our research clearly highlights social media’s value in raising awareness and thereby directing consumers to destinations, websites, offers and vouchers…social media is an important platform from which to interact with the wider consumer community.”
Whilst the technology and its applications may change – as with Smartphones, for example – it’s clear that hospitality businesses must now use and keep track of social media in order to interact effectively with many of their consumers. And – it’s unlikely that an ageing Generation Y will abandon its use of social media, or be replaced by a generation that abandons it.
About the report
Taste of the Nation is produced by Deloitte, together with BDRC Continental, and explores the trends and patterns of consumers’ eating and drinking habits out of the home. It takes into consideration every time they purchase drink or food from a pub, bar, coffee/sandwich shop, fast food outlet, restaurant or club, whether it be a sit-in or takeaway occasion, shedding light on the size of the market and its opportunities.
The survey was completed by a nationally representative sample of 3,000 British adults, during April 2012, and comprised strong representation from all UK regions (excluding Northern Ireland), as well as different age and gender groups.
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