Fast food greed is getting them into trouble

© Shutterstock/EugeneEdge

Generation Z, young people born between the end of the 90s and the beginning of the 2010s, are turning their backs on fast food. This is an alarming observation for McDonald’s, Burger King and other giants in the sector, who have long relied on a young clientele to ensure their growth. But how did we get from such great popularity of these brands to the unenviable situation they currently find themselves in? The main reason? Money.

The bitter taste of inflated prices

For years, fast food chains have played the inflation card, regularly increasing their prices. A strategy that is now backfiring on them. According to a study conducted by Morning Consult, Generation Z is significantly less likely than their elders to consider fast food as good value for money.

The numbers speak for themselves: last July, only 34% of Gen Zers defined fast food as good value for money, compared to 48% for Gen Xers. A warning signal that the industry giants can no longer ignore.

Promotions that are no longer profitable

© Unsplash/Janica Chioco

Faced with this lack of love, brands have tried to react. McDonald's launched its 5 euro menu, initially planned for one month, then extended due to the mixed reception Burger King followed suit with its own cost-effective formula. But these marketing stunts have not been enough to restore the image of fast food restaurants among young consumers.

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Lindsey Roeschke, an analyst at Morning Consult, points the finger at the ineffectiveness of these ephemeral promotions: “These limited-time offers have little impact on the overall perception of the value of fast food restaurants.” A finding that is forcing chains to completely rethink their approach.

The recipe for success with Z

To win back this crucial generation, fast food restaurants need to rethink their strategy. Menu innovation seems to be a promising avenue.

But beyond the products, the entire customer experience needs to evolve. The stakes are high for these chains. Generation Z, whose oldest members are becoming parents, represents a crucial market. Missing the boat now could mean losing customers for decades to come.

The fast-food giants are therefore at a crossroads: continue on the path of short-term profitability at the risk of alienating an entire generation, or fundamentally rethink their model to adapt to the expectations of young consumers.

• Generation Z no longer considers fast food to be good value for money
• Short-term promotions are not enough to change this perception
• Fast food restaurants need to rethink their business before alienating an entire generation

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