With the spending power of the Millennials set to overtake the Baby Boomers,[1] they are a valuable market worth your attention.

The Millennials birthdays range anywhere from the early 1980s to the early 2000s, making them between 15 and 35.

To tap into this valuable market, you must first understand how their dining and spending habits are different to that of other generations.

The dining culture

Research has shown that Millennials see eating out as a valuable activity, compared with other ways to socialise, such as a night in the pub.[2] When it comes to eating out, Millennials eat more meals out of home every week than any other generation. The Foodie Nation Report[3] reveals that Millennials eat out five out of 21 meals at restaurants, cafes or takeaways each week – one more meal per week than Generation X (aged 35 to 50) and three more than Baby Boomers (aged 51 to 64). Of those five meals, two of them will be at lunch, two at dinner, and the remainder at breakfast.

But when it comes to disposable income, Millennials are not quite as cashed up. 57 per cent of Millennials only have up to $200 in weekly disposable income, so while they eat out more often, they tend to make it go further and will purchase cheaper meals, more often.[4]

But this generation is demanding and will place venues under the microscope to ensure they get full value for money. Millennials place an emphasis on healthy eating and are interested in foods that are fresh, simple and healthy. [5] They are driven by engagement and will seek to connect with the brand behind their food.[6]

Engaging with Millennials

While it may sound like a difficult task, engaging with Millennials can be as simple as a rewards program.

It can cost up to ten times more to acquire a new customer than to retain a current one,[7] so a rewards program is valuable to a store owner as it keeps customers coming back for more.

A rewards program can be a massive boost to a franchise, as it can increase your bottom line, boost customer satisfaction, obtain valuable data about your customer, help differentiate your business and strengthen relationships with existing customers.

Oporto is one franchise which bring in and maintains its Millennial customers through its rewards program: Flame Rewards. As part of the program, members receive a $5 voucher upon signing up, then they will receive exclusive offers events and competitions in the areas of sport, music, arts and entertainment, ability to earn points to redeem in store, and as an extra treat they receive a free meal on their birthday.

Oporto’s engagement with Millennials doesn’t stop at its rewards program. The company has built its business model around these valuable customers, driving engagement through a range of initiatives, such as menu options and bringing back the Original Chilli Sauce (that has some kick!) and keep an eye out for the Chilli Challenge, amazing new store designs and renovations and a major social media engagement plan with exclusive content.

These are exciting times at Oporto, so to find out more about becoming a part of the Oporto family and owning your own franchise, click here.