Restaurants Turn Their Focus to Pickup to Reach Gen Z

With Generation Z disproportionately turning to pickup channels, restaurants are challenged to refine their offerings.

By the Numbers

According to data from PYMNTS’ study, “Connected Dining: Rising Costs Push Consumers Toward Pickup,” which drew from a survey of more than 2,100 U.S. consumers in January, 45% of Gen Z restaurant customers reported having placed their last order for pickup, a greater share than any other generation and well above the population-wide average of 39%.

Why It Matters

As such, in an effort to woo these consumers and win their loyalty for decades to come, restaurants are being challenged to improve the pickup experience.

Quick-service restaurant (QSR) giant McDonald’s, for one, is looking to remove friction from the channel by reducing the wait time on consumers’ end. The brand shared last month that it is updating its mobile order and pay capabilities to inform back-of-house staff when mobile order-ahead customers are near the store, such that the kitchen can prepare the order to be warm and ready just as the diner arrives. The goal is to both boost efficiency and improve the customer experience.

“We’re committed to consistently delivering a fast and more seamless experience for fans using the McDonald’s app,” McDonald’s USA stated in an email. “We’ve rolled out app updates that will improve the mobile-order experience making it fast and convenient for those ordering ahead through the McDonald’s app for curbside, table service or in-store pickup.”

Meanwhile, coffeehouse behemoth Starbucks is focused on making its offerings more easily accessible, working with Target to enable consumers to order curbside alongside their retail or grocery purchases for one-stop fulfillment. The retail giant stated in November that it was expanding its rollout of the option to 240 stores after an initial trial earlier last year. The move highlights how restaurants and retailers can cross-sell to drive sales and digital engagement.