You might create a viral TikTok video and see Gen Zers rushing to your venue for that one hyped-up product. They come in, buy the item, maybe take a few pictures for their socials, and then leave - never to return.
You don’t need to be a business genius to recognise that that’s not a sustainable model for growth.
While viral moments can fill your venue in the short-term, the real challenge lies in making sure people stay longer and, more importantly, come back again and again.
To truly succeed in generating loyalty, you have to do more than just focus on hot trends; you need to create experiences that keep them engaged and make your venue a place they want to return to.
So, how do you go beyond that initial buzz to build lasting loyalty?
1. Meet Their Frugality
Gen Z has grown up during challenging financial times. From the 2008 recession to the COVID-19 pandemic, they’ve been shaped by an environment of uncertainty, making them more financially cautious than previous generations. As a result, they’re constantly on the lookout for value and bargains.
In fact, according to a 2023 survey by Deloitte, 57% of Gen Z consider themselves “savers” rather than “spenders” and are highly selective about how and where they allocate their money. Interestingly, Gen Z is also investing earlier in life, with a report by Charles Schwab noting that 60% of Gen Z adults started investing before the age of 21.
So, to keep them coming back, you need to offer either one of two things:
-
Wow them with great pricing. This doesn’t necessarily mean deep discounts but offering value for money: loyalty programs, exclusive offers, or special pricing events like happy hours that genuinely appeal to their budgets.
-
Make your products or experiences worth creating content around and therefore spending more on. Gen Z is known for spending on experiences or products that have a viral or social media-friendly element to them. An example of this is Erewhon’s viral smoothie collaborations, which, despite their premium pricing, have Gen Z flocking for the chance to showcase them on social platforms.
Takeaway: It’s not just about creating an Insta-worthy moment at the bar. It’s about designing products that go beyond the initial draw, so good that Gen Z can’t help but stay for another round, or indulge in that dessert they didn’t plan on ordering. The key is offering a menu where everything feels worth the investment—not just that hyped-up product that brought them in.
If your products all look great and deliver value across the board, that in itself becomes a reason for Gen Z to stay longer and spend more.
If they end up sharing their experience on social media, that’s an added bonus for brand growth, but not the sole goal. Instead, the focus is on crafting an overall experience that speaks to them, whether or not it’s shared online.