In a revealing insight into changing dining habits, Tom James, managing director of Bill's cafe chain, has highlighted a significant shift in customer preferences, particularly among Generation Z diners. According to James, younger patrons increasingly favor digital ordering methods over traditional waiter interactions.
"I just think it's how they've grown up. They communicate through their phones and their devices."
This trend aligns with the rapid technological advancements of the past two decades. Since the introduction of the first touchscreen smartphone in 2007, digital communication has become increasingly prevalent, especially among younger generations born between the mid-1990s and early 2010s.
In response to this shift, Bill's is implementing various technological upgrades across its restaurants. These include self-service kiosks and QR code-enabled table ordering systems, technologies that have gained popularity since their invention in 1994. James notes that in some central London locations, over 50% of customers now opt for digital payment methods.
While embracing these changes, Bill's remains committed to maintaining a balance between technology and traditional hospitality. James emphasizes that personal interaction and creating memorable experiences remain crucial to the business. This approach reflects the broader trend in the restaurant industry, where the global self-service kiosk market is expected to reach $45.7 billion by 2026.
To further appeal to Generation Z, Bill's has expanded its non-alcoholic drink options, tapping into the growing trend of moderation among younger consumers. The non-alcoholic beverage market is projected to grow at a compound annual growth rate of 5.4% from 2021 to 2028.
The chain has also revamped its presentation to be more social media-friendly, recognizing the importance of platforms like Instagram and TikTok to younger diners. Since its launch in 2016, TikTok has become one of the most popular social media platforms among Gen Z.
Bill's technological adaptations extend to its reservation system, where AI chatbots have replaced human staff. This move aligns with the projected growth of AI in the restaurant industry, expected to increase at a CAGR of 30.3% from 2021 to 2026.
Despite the challenges faced by the UK casual dining sector in recent years, Bill's has reported strong financial performance. The chain's sales reached £92.6 million in 2023, with a 3.4% increase in the first half of 2024. This growth is particularly noteworthy given the recent cost of living crisis in the UK, which saw inflation reach a 40-year high in 2022.
Looking ahead, Bill's plans to open new locations in Milton Keynes and Street, Somerset, by the end of 2024. These openings will precede a wider expansion in 2025, including traditional restaurants and new cafe bar-style establishments focusing on sharing dishes and casual dining options.
As Bill's continues to evolve, it serves as a prime example of how traditional hospitality businesses can adapt to changing consumer preferences while maintaining their core values and appeal.