When I founded Burger Barn in 2011, I had already gained invaluable experience as a serial entrepreneur. My retail, wholesale, energy and construction businesses were similar in respect to the customer base, procurement process, talent acquisition and market focus.
Opening a restaurant requires a unique skill set. There are a range of popular restaurant concepts to choose from, from casual dining to delicatessen. As for talent, the chef is a key hire. Much is riding on his or her menu selection and food preparation. But perhaps the biggest difference is that the demographics of prospective customers vary widely depending on concept, menu, price and convenience. According to Entrepreneur magazine, aspiring restaurateurs should focus on attracting five to 10 percent of the overall market. Significantly, dining preferences vary widely by generation. Millennials “go for fast-food and quick-service items. About 25 percent of their restaurant visits are to burger franchises, followed by pizza restaurants at 12 percent.” Generation X is the next in line. These consumers were born in the years following the Baby Boom, from 1965 to 1980. “This group is known for strong family values,” says Entrepreneur. “While earlier generations strove to do better financially than their parents, Gen Xers are more likely to focus on their relationship with their children. They are concerned with value, and they favor quick-service restaurants and midscale operations that offer all-you-can-eat salad bars and buffets. To appeal to this market group, offer a comfortable atmosphere that focuses on value and ambience.” Baby boomers are still the largest segment of the population. Their journey has been the story of modern cultural history. Along the way, they’ve transformed everything they’ve touched, from music and television to lifestyles and economic patterns. “Prominent in this generation are affluent professionals who can afford to visit upscale restaurants and spend money freely,” says the magazine. “During the 1980s, they were the main customer group for upscale, trendy restaurants. In the 1990s, many baby boomers were two-income households with children. Today, those on the leading edge of the boomer generation are becoming grandparents, making them a target of restaurants that offer a family-friendly atmosphere and those that provide an upscale, formal dining experience.” The older members of this generation can usually also be categorized as “empty nesters.” Entrepreneur notes: “With the most discretionary income and the highest per-capita income of all the generations, this group typically visits upscale restaurants. They are less concerned with price and are more focused on excellent service and outstanding food. Appeal to this group with elegant surroundings and a sophisticated ambience.” Finally, there are seniors, commonly defined as people 65 and older. “Generally, the majority of seniors are on fixed incomes and may not often be able to afford upscale restaurants often, so they tend to visit family-style restaurants that offer good service and reasonable prices. Younger seniors are likely to be more active and have more disposable income than older seniors, whose health may be declining. Seniors typically appreciate restaurants that offer early-bird specials and senior menus with lower prices and smaller portions, since their appetites are less hearty than those of younger people.” Once you’ve identified your customer, the really fun part begins. At least, that’s the way it has been at Burger Barn. And for readers who are curious about which demographic group we decided to target with our delicious food, my answer is: Please come by and take a look! We’ve got a world-famous Classic Stacker waiting for you. Comments are closed.
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AuthorJason Hill is a respected entrepreneur and innovator who learned important lessons about life, business and success growing up in Six Nations, Ontario. Archives
January 2023
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