Sustainable Insights

Sustainable Insight #3

The Power Of Gen Z

In our work bringing supply chain transparency and analytics to foodservice we see the power of Gen Z’s market influence in bringing sweeping and much needed change to traditionally inflexible systems. Disruption has entered an industry that for decades remained unchanged. Their influence exists in increased food access and equity, diverse supplier engagement and transparent source procurement. We can credit this next generation of consumer, as well as the preceding Millennial generation, for these changes. But how do foodservice businesses navigate, adapt and compete in selling food products and dining services to these new generations of purchasing consumers? These are questions we’ve had to solve as a company, both for our clients and ourselves, in delivering supply chain solutions, food products and dining programs as these new generations enter the workforce. Our children are now today’s powerful consumer, using their voice and purchasing power to drive change.

Where Did Gen Z’s Voice Come From?

First, it’s important to know the origins of Gen Z’s voice. As children born between 1998 and 2015, Gen Z spent elementary school exposed to initiatives to save our earth as families took individual steps to reduce their carbon footprint by purchasing produce at local farmer’s markets, recycling and compositing. Parents advocated for healthier school meals, the USDA introduced new nutrition guidelines, Michelle Obama’s Let’s Move initiative took hold, and Farm To School was implemented at the federal and state levels. Children began to learn where their food came from, and to expect healthier options outside of school too. This eventually put pressure on universities and workplaces as these children graduated and entered the workforce to be equally mindful.

How Is Gen Z Different?

A generation of young adults ushering in change is not new. From rock and roll, to Vietnam protests, to protests for civil and women’s rights, the young voice of prior generations is what moved us forward. What is new today is Gen Z’s use of multiple social media channels to publicly voice opinions and gain consensus, and to publicly call out businesses in ways once only possible in a much smaller circle that included one’s parents, community and education system. This is a generation with no memory of life without the internet and digital communication, and they became cognizant at an early age of the power of social media to share opinions and gain consensus. Connecting with peers and trends on a global scale they also gained exposure to diverse world views, cultures and interests. What resulted was an entire generation’s ability to find community and create disruption faster, and in ways not possible for prior generations.

What Issues Are Top of Mind For Gen Z?

The pandemic and protests of 2020-21 put a harsh spotlight on climate change, systemic racism and social inequities. Both Gen Z and Millennials feel the earth is getting warmer due to human activity, that Blacks are treated less fairly than whites in our country, and look to government for legislation and their employer for hiring that supports racial, gender, and marital equality. A Pew Charitable Trust study shows that 54% of Gen Z and 56% of Millennials have global warming concerns. Two thirds of both generations feel that Blacks are treated less fairly than whites, and half of each generation feel same-sex marriage is good for society. Gen Z is also leading change in our views of gender identity, and 59% of Gen Z and 50% of Millennials support gender options on official documents.

How Does This Impact Business?

The news is filled daily with multiple causes for concern affecting our populations and planet, and the new consumers have high expectations for private companies and government to actively play a part in creating solutions through legislation and mindful corporate practices. Whichever improvements a company initiates, you can be sure they will be held accountable and called out where action and impact are not visible. The past 18 months did not create the collective loud voices of Gen Z and the Millennials, but it did hasten the momentum and got the rest of us to pay attention in a new, multi-generational effort. This of course includes new pressures on foodservice supply chains, dining programs and CPG firms to adapt sustainable sourcing and hiring practices while demonstrating proof of impact. Unlike prior generations, Millennials and Gen Z do not readily trust that government or the corporate world will forge a sustainable path forward for the world they will soon inherit. They demand evidence.

ESG: How To Prepare For The Future Consumer

Gen Z and Millennials support companies and products not just with their purchasing power, but also with their investment decisions and employment choices. So it’s not just about selling products, it’s also about attracting and retaining talent and satisfying investors. Clearly transparent claims matter, but it’s more complicated than that. Marketing to the next generation requires a multi-prong strategy not required of companies until recently. The complexity lies in planning for a new how, what, where and why, which is why many corporations today are adopting ESG (Environmental, Social, Governance) strategies as a framework to measure business sustainability.

There are plenty of avenues a company can pursue to adopt practices that support change, but it’s important that the path chosen is clearly communicated and naturally aligns with a company’s true ability to increase and measure impact. In foodservice we see a transition to plant-based options, as witnessed by large companies such as McDonald’s and Starbucks, a focus on healthy food access and nutrition education, support of local farms, fair trade and humane production practices and diversity in hiring and supply chain engagement. Clearly one company alone cannot support change in all these areas. What matters most is listening to your new consumers and employees, selecting initiatives that communicate they are heard and valued, and executing and measuring well. We see authenticity go a long, long way. Conversely, we see companies called out for overstating their efforts. Just know these new generations have done their homework.

Adding to the complexity is the evolving nature of initiatives and what is measured. It’s therefore important to stay abreast of shifting sentiments, issues and concerns, and for your marketing to reach Gen Z and Millennials through their social channels. 3^rd party programs such as AASHE, Real Food Challenge and Cool Food Pledge are examples of frameworks that are continually refining what constitutes sustainable food practices and measurements. For example, in just the past year the definition of local has shifted from farm-specific to local community business support, and the transition to plant-based purchasing is now used as both a health and climate measurement. The UN’s Sustainable Development Goals (SDGs) is an excellent framework for corporate sustainability (CSR) and ESG strategy, with 17 established goals by 2030 around green initiatives, climate action, sustainable cities and communities, quality education, gender and racial equality, health and well-being and responsible consumption and production. A clear path should be picked with achievable goals over a multi-year timeframe, a benchmark established, and progress clearly communicated at regular intervals.

Marketing to the new consumer, Gen Z and their Millennial predecessors, may seem initially challenging, but we have seen the impressive difference their voice has made firsthand on campuses, at workplaces and in communities. We’re proud of these generations. They are expecting collective change from all of us, and are not looking to each individual company to fix everything. They are a generation that values personal choice, integrity and individuality, and they will appreciate your company’s individual efforts as well, as long as sustainable practices and commitments are delivered with intent, transparency and measurable impact.

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