India has 116 million Gen Z consumers, according to data compiled by the Market Research Society of India (MRSI) and analytics firm Kantar in June 2023.
When it comes to the generation's food habits, experimentation and eating healthy rule alongside junk food, as per multiple industry experts and reports.
According to Packaged Facts’ report “Looking Ahead to Gen Z: Demographic Patterns and Spending Trends.' Gen Z is more likely to snack between meals than their millennial counterparts. What’s important is that the generation is looking for ‘healthy’ in junk food.
This is seen in the growth of the startup Burgrill India, a quick service restaurant (QSR) burger chain. For the company which has over 50 outlets all over India, 60% of the orders come from Gen Z.
"For us, junk food and fast food are not the same thing," Shreh Madan, Co-Founder and Head of Marketing at Burgrill told CNBC-TV18. He added that the majority of their menu is filled with grilled food, encouraging healthy eating by innovating fresh products every month.
“Our Heavyweight burger and the Chicken Quarter Pounder burger are some of our bestsellers and their patties are grilled. A lot of health and fitness conscious Gen Z folks are attracted to our healthier menu options,” added Madan.
The gap between mass premium brands serving affordable, tasty, and quality products in the Indian QSR market is what led Ankur Madan, Rajat Bawa and Shreh Madan to start Burgrill in 2017.
With the introduction of ‘healthy junk,’ Burgrill has seen a rise in its revenue and sales. The company is expecting to report a revenue of ₹50 crore in FY24 and is projecting to have a revenue of ₹85 crore in FY25. Additionally, Burgrill India saw sales worth ₹46 crore in the calendar year 2023. Gen Z's contribution to the pie was 30%, according to data provided by Burgrill India.
What Gen Z likes eating at QSRs in India?
Madan pointed out that Gen Z is a vociferous group. They are highly opinionated and are not scared to express their opinions.
“They have supported us, called us out on our missteps, and given feedback about our products throughout. The best way in which Gen-Z has helped grow our business is by asking us to open outlets at new locations! We really hear them out and strive to open stores in student and office areas to facilitate a wholesome eating experience for them,”
When it comes to their eating habits and QSRs Madan said Gen-Z might sound like a generation that’s heavily influenced by the West but many of them still hold on to their roots no matter how modern they are.
“The idea of connecting with Indian roots made us create a range of burgers with celebrity chef Saransh Goila, who specialises in a smoky, buttery, and creamy makhani gravy. His butter chicken recipe is iconic. We brought two crowd favourites together by creating a Butter Chicken and a Butter Paneer burger,” added Madan.
As mentioned earlier the mix of healthy and junk in the menu is what appeals to Gen Z. “We make sure that we have a balance of fried and grilled products in our menu. There are times when the same person would want to indulge but some moments when they want to adopt the healthier route. We can appeal to customers in both those moments,” said Madan.
Marketing right to tap the Gen Z
When it comes to selling food to Gen Z it’s not just about the menu. Gen Z is highly active on digital platforms like YouTube and Instagram and they rely on these channels not only for staying connected but also for gathering information and seeking recommendations from online influencers. By offering camera-ready dishes that align with the unique aspects of the Gen Z food culture, restaurants can effortlessly build a positive following among these young consumers, leveraging the power of social media. Hence, marketing right matters.
“Our marketing strategy is wholly designed around the interests of Gen Z audience be it subtle inclusion of their interest in beauty or streetwear or gymming. Even the in-store events we conduct for customer engagement are designed to interest Gen Z,” said Madan.
Looking forward, Burgrill aims to achieve a ₹200-crore revenue brand by 2028. "Market expansion, product innovation, digital presence, customer experience, and operational efficiency are our focus areas. We also plan to create many more in-store community activities to encourage people to try our food hot and fresh. And our content marketing is only going to get crazier with time while surpassing trends," he explained
The company is also aiming to open 40 new company-owned company operated (COCO) stores in cities like Mumbai, Pune, Bengaluru and Hyderabad, where currently they don't have any stores, and also opening dine-in stores in cities like Delhi /NCR & Chandigarh.
