There are many industries that can benefit from the incredible growth of the Hispanic market. It is estimated that their purchasing power will reach $1.5 trillion dollars by next year.
According to the latest research from Burke and Univision,”Casual Dining Restaurants Landscape Research 2014,” restaurants can significantly benefit from Hispanic Millennials, also known as Generation Y. It refers to anyone born in the U.S. between the early 1980s to the early 2000s (approximately ages 13 to 35). This young group contains the marketing “sweet spot” of 18-25 year olds, which is a very lucrative market for many industries.
This group represents the growth of the Hispanic community. It is estimated that 65% of U.S. Hispanics are Millennials between the ages 22-35 years of age.
When it comes to food away from home, Hispanics represent over $56 billion dollars in consumer spending. Based on a study from Yankelovich Hispanic Monitor, Hispanics are frequent restaurant visitors and they have a greater tendency of dinning out with their children, especially if they are Spanish speaking dominants. They represent a growth of 25% from 2010 to 2015 in the restaurant industry.
Hispanics tend to buy food and beverages together when they dine out (90% vs. 76% of non-Hispanics). This is an important factor to keep in mind to up-sell items on the menu or to create specials offers and combos.
Another important characteristic is that Hispanics don’t search for, but have a preference for, Hispanic ingredients. This provides the opportunity to introduce food that emphasizes flavors and ingredients that appeal to them.
If you really what to capture this audience as part of your business success, keep these 4 recommendations in mind:
Culture differences: Based on the Burke research, the top 5 reasons why Hispanics tend to visit casual dining restaurants are: 1) To spend time with family and friends; 2) a social occasion; 3) for celebrations; 4) for healthy meals; and 5) to treat the children. Executives should keep this in mind to promote their restaurants according to these opportunities.
Welcome feeling: Training management teams and staff is important so they can understand the Hispanic customer culture and address their needs appropriately. There will be some cultural differences and misconceptions about this target audience from some employees and management. Language is a significant factor in the U.S. Hispanics’ use of restaurants. For 88% of Hispanics in America, their Spanish language is an important aspect of their home life. 52% are bilingual; more than 25% speak Spanish, while 21% are English dominant. Among these, the traditional Spanish-dominant ones are those who are likely to bring children along to the restaurant.
Size matters: Hispanics represent larger size parties 4.2 persons vs. 3.3 of non-Hispanics. They also tend to stay longer, so there is an opportunity to up-sell menu items. As we mentioned before, they go out with their family and children. This translates to bigger checks, more sales, and larger tips.
Maintaining relationships: This is where many companies fall short. Once you get their attention, you must keep it. Continue the dialog. Build on your initial investment. Reach out to them within their lifestyle. Eclub is an important tool to master. It can help flourish the relationship by providing specific details on the market and their wants and needs.
It is also very important to understand that even though your mass-market strategy may have served you well for decades based on past experiences, the general market is becoming more and more fragmented and less economically powerful. So, understanding how to sell your products and services to the minority groups (Black, Asian, and Hispanic) is becoming a business necessity. Minorities already represent over 35% of all consumers in America. That is a significant percentage of business that could nourish your business well into the future.
