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Catering for the Millennials

Chef Pierre Gagnaire interviewed

Chefs roundtable in Berlin

Up on the roof with rhubarb

Last bite: Dylan Murray

T eenagers and twenty-somethings have been dubbed the millennial

generation, millennials, or generation Y. More and more books, studies and articles are being released about this group of people born between the 1980s and early 2000s.

Millennials are a highly-influential consumer group, with a vastly different set of values and attitudes from any previous generation. They don’t dream about owning a sports car, but probably share an economy car in the same way they may share their job.

The flower power or love generation may have flocked to Woodstock and India, but they usually came home sooner or later. Millennials, or ‘digital natives’, have been pampered, protected and programmed from birth, and raised by parents telling them they are very special. Today, they are faced with the fact that life is not a bed of roses, making them unhappy and frustrated.

The millennial generation is also known as generation Y because it comes directly after those born between the 1960s and 1980s – better known as generation X, as popularised by author Douglas Coupland in his novel of the same name.

Generation X-ers have been born into an affluent society that allows a largely carefree life. Their grandparents (and my father as well) survived the Second World War. After the war it was all about reconstruction and economic growth.

The baby boomers (born from the end of war until the 1960s) made careers and earned good money. Today they approach retirement – an ideal target group for the travel industry, cruise lines, and spa and wellness resorts.

Generation X is the first generation to grow up with IT playing a significant role

BRIEFINGTrends, innovations and events shaping foodservice in the

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Will generation Y fundamentally change the

foodservice industry? Hildegard Dorn-Petersen

FCSI investigates

The next generation

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in their everyday lives. A large number of our customers, hoteliers and managers, but also many of our colleagues, are among this age group, some celebrating their 50th birthday this year.

One generation Y or two?After a discussion I launched during sessions at the SpaCamp trade event in Germany in November, I suddenly realised generation Y is not a clearly defined group. The media tends to focus on those who are online 24/7. But there are a growing number of young people who want to embrace other values and real needs. Many decide to go offline during holidays, enjoy a nice dinner with friends, or go away for a weekend.

A further distinction should be made between younger and older millennials, especially for the second group where two hearts beat in their chests. “Sometimes I am acting completely as generation Y, and the next day I decide it’s more reasonable to act as an X,” one delegate of the SpaCamp confessed.

Moreover, we must not forget that the part of this generation, who are well-educated, is only part of the equation. What worries me is the large group of young people who are unable to speak complete sentences and are poor at spelling. They are used to communicating in fragments, by text and WhatsApp.

Some of my clients no longer want to consider the type of employee who might conceivably resign from their job via text at short notice. But what will these kids do when they apply for a job they really want? No wonder there is a storm under the surface.

Invest or witherYou could ask: “why should I care as a hotel manager, operator or consultant?” >

Very simply, generation Y is a double challenge for you, both as an employer and a business.

Let’s start with the employer situation. Firstly, there are difficulties in finding well-trained and qualified staff, as I’m sure you are aware. The western hospitality industry is experiencing a shortage of skilled professionals due to its poor image and competition from other sectors. Speaking about German cities such as Berlin or Munich, as well as seaside resorts, it is a struggle to find a suitable chef or apprentice.

“In competition with other sectors and industries for the best minds available, only those who are investing in their attraction as an employer of choice will be successful,” points out Ingrid Hartges, chief executive of renowned German hotel and restaurant association DEHOGA. “This requires a working environment in which all employees receive the same recognition.”

Seeing the way ahead and the purpose of going in a certain direction is as important to generation Y as appreciation and rewards. They give feedback by text, instant messaging and Facebook to friends and others every few seconds, and so they want to receive feedback about their performance in the job right away. Therefore, do not wait for a six-month evaluation. And if your

“In competition with other sectors and industries for the best minds, only those who are investing in their attraction as an employer of choice will be successful”

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with which it portrays an important issue in human resources management. The film has received numerous awards and distinctions in Germany, and attracted a great deal of interest across many industries.

A growing recognition of employer branding has only developed recently. “When I had my first speech about employer branding in 2006, many in the audience looked rather confused,” remembers Klaus Häck FCSI, coach and chief executive of Hommequadrat. To increase awareness of the FCSI among students, different campaigns on Business schools for the Hospitality Industry will be organized. Kick off for the first FCSI Project Speed Dating is 16 April at the WIHOGA Campus in Dortmund.

A jury of FCSI consultants will listen to 10-minute presentations from the students. They will get 20 minutes feedback from the experts, including tips regarding the concept, economical potential and possible aspects that may have been neglected. This will enable the students to implement the professional input into their project at an early stage, and improve their performance.

This “project dating” will be a new offer for students, as we felt the ‘FCSI Junior Champion’ launched in 2008 is outdated – and we experienced problems getting enough applications in 2012 and 2014. Presumably generation Y measured the balance of benefits and burden, fun and risks, and decided against participation. Let’s wait and see what happens to the FCSI Young Students Award.

Digital added value was the central theme of the Germany-Austria AGM held in Hamburg in November 2014, and this could not work without a glance at the next generation. Keynote speaker

Constanze Ochs was able to discuss everything about “generation CHA CHA CHA”, because she is part of this generation. For her “CHAnge, CHAllenge and CHAnce” are the keywords to understand people of her age or younger. Before joining Ernst & Young in Zurich, Ochs studied and worked for McDonald’s Germany, giving her boss lessons in how to better handle employees of her generation or younger.

Business opportunities Success and sustainability of your company or your hotel not only depend on human resources, but most importantly on your clients. They are of different age, but the millennials are not only on your doorstep, there are already omnipresent and will be your future customers – if they want to be. Be aware, however, that many of them are online 24/7, so they expect service 24/7.

Generation Y is a challenge for target marketing, because they can be as difficult to grasp as a wet fish. To continue that metaphor, always remember the saying: “the bait is for the fish to like, not the fisherman”. I am sure the rules of communication will change from “how do we catch our clients?” to “how do our potential customers reach us?”

It is certain that online bookings are increasing – 85% in Germany during the last year. The net generation needs more than 10 touch points to make a travel-related decision – and no guide book. They are used to having information and answers immediately available.

“Being social is a must, but it has to be planned,” is the good advice from Andreas Romani FCSI, a consultant and self-confessed “social media freak”, based in Munich. “If the first impression is not good, the chance has been missed. Always

be honest and look for clear and appealing content.”

Remember, pictures tell better stories than words and, last but not least, the time required should not be underestimated. There is one other point, trying to be “everybody’s darling” is a mistake. Whoever wants to please everyone risks gambling away their future. In social media, it is better to tackle one thing well, than to deliver half measures on many issues.

So, how to get started? It may be time to take a long hard look at website – after all, it is your shopfront. It’s incredible how old-fashioned some websites still are in German-speaking countries. Also, think about a mobile phone app to provide better access to your offers. Telling stories is a good idea, but you must talk the language of the new generation. It might be worth considering asking a suitable generation Y-er from within your office to help you (much better than spending a lot of money on an agency). Let them know that your product or business is conducive to their changing lifestyle, or attach a social cause to your business. These are just some of the ways that could be a

successful approach to the new generation. Also, think smart – millennials are your best marketers. Take advantage of their affinity for communication. Remember, spenders are recommenders.

Be enthusiastic when approaching this issue, but take care when you market your product or service to generation Y. Keep your promises. Everything is evaluated, and nothing can be hidden or hushed up. High expectations must be met, otherwise you will be punished – and you’ll be the last to know about it.

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Hildegard Dorn-Petersen FCSI has been a consultant for over 20 years. She provides MAS (Management Advisory Services) consultancy, spa consulting and “mystery checks”. She is a member of the German FCSI board and frequently writes for the trade press. hotel-consult.de

Trying to be “everybody’s darling” is a mistake. In social media, it is better to tackle one thing well, than to deliver half measures on many issues.

feedback won’t be positive, take care not to kill the motivation inside the young mind. It might be a good idea to say: “You are doing fine, but you could do a little bit better.”

Changing expectationsMost of us will remember times when a pay rise could be avoided by giving the person a title as a job promotion, including a nice business card – from waiter to chef de rang, from sales manager to director of sales, and so on. Sorry, this won’t do for generation Y. They are much more concerned about content and personal challenge.

Employer branding is the magic word used to describe a human resources strategy to differentiate brands. Individual hotels and privately-owned chains have followed in the footsteps of this strategy. The way this works is described in The Upstalsboom Story, a film that documents the efforts of a German hotel chain to transform its corporate culture. An employee survey revealed extremely high levels of dissatisfaction. The company’s turnaround strategy was a resounding success: employee satisfaction jumped 80% – leading to nearly a doubling of revenues. While the film is aimed primarily at the hotel chain’s employees and partners, it has been widely praised for the visual and emotional strength

Face up to the challengeThe hospitality industry cares for other people. That is what makes the it so special. We are used to listening to our customers, and we should listen even to the next generations.

With regard to the question: “Will generation Y be able to change our industry sooner or later, with respect to employers, suppliers, hosts,

consultants?” I am sure top-down hierarchies are over and out. When it comes to hotel guests, it looks different: Changes of generations have always existed. Even the web has undergone generational changes during the last two decades.

Take a look at some of the luxury resorts in Switzerland, Austria and Germany. Some properties have successfully managed to appeal to younger clients. Guests can enjoy their stay in a relaxed

atmosphere, with casual attire and Wi-Fi everywhere. This could be a guideline for the whole hospitality industry.

In Germany we have a saying: nichts wird so heiß gegessen wie es gekocht wird – nothing is eaten as hot as it has been cooked. Appealing to generation Y may seem like a daunting task, but there is a great chance here for the hospitality industry. If you get the attention of generation Y, then maybe they will lead your business into the future.

Must knows about Millennials

39% define challenging

work as being involved in

innovative work

52%prefer a job

where they can have a secure employment

45%expect to retire

when they are 60 years old or earlier

64%care more about the opinions and

recognition of their manager and

colleagues

49%believe it is

very important to receive feedback

on their work performance from

their manager