The world’s largest F&B concept developer reveals what attracts Gen Z to hospitality

Over the past twenty years, Livit Design has developed more than 15.000 F&B venues worldwide. The F&B concept developer is active in more than 45 countries. Taco Bell, IKEA, STACH, La Place, Burger King and Starbucks are just some of the impressive names on its portfolio. Food Inspiration interviewed Rafael LaRue Pierri, architect and co-owner of the design agency. He explaines what attracts Generation Z to the hospitality industry.

Livit Design develops F&B concepts from A to Z – from brand strategy and guest experience to interior design. This also includes the music played in the venue, the cutlery, and the outfits of the employees. LaRue Pierri: “So let me start with something controversial: there are no new hospitality trends. There is an incredible amount happening in the world of hospitality. We don’t see trends, but we do see so many innovations that it’s difficult to keep up.”

The COVID-19 pandemic is a good example of how quickly these developments can unfold. During COVID, the hospitality industry had just one goal: survival. Hospitality businesses could no longer welcome guests on-site, so social media became more and more important. It gave businesses a platform to show what they had to offer. “The fact that fine-dining restaurants started offering home delivery would have been unthinkable before the pandemic.”

• Gen Z wants a personalised experience

We have now reached a point where hospitality operators are moving out of survival mode and once again asking themselves: ‘How can we create more memorable experiences?’

“Experience is top of mind. This is partly driven by the expectations of Gen Z – consumers born between 1997 and 2012. Gen Z is coming of age, and that is influencing their attitudes towards food and drink. This generation consciously chooses brands they identify with, brands that stand for something and are distinctive or bold.” Generation Z doesn’t want anything generic, but something unique and carried through down to the smallest detail.

Concept: Record Room

• Experience and convenience come together

“When a hospitality business focuses on convenience, this needs to be reflected across the entire operation – from takeaway and delivery to the food itself. When you focus on experience, you incorporate it into the food, the interior, the service and social media.

“But there is a caveat”, LaRue Pierri adds. “We are seeing these two developments come together. When you focus on experience, Gen Z also expects convenience. And when you focus on convenience, you need to add an element of experience to your concept as well. That is how you stand out.”

• Strong identity

Generation Z wants hospitality businesses to live up to what they stand for. “As a business, you need to have a very strong identity. Simply saying that you are a sustainable coffee shop is not enough – your entire business needs to embody it, and you need to prove it. So, in addition to serving a good cup of coffee, you should also let your guests know that, for example, you support people who are distanced from the labour market.”

• Food as medicine

Guests are becoming increasingly conscious of what they eat. The new generation is taking this one step further. Food is being used as medicine, in other words, to support mental or physical health.

“When people eat something, they want to know how it positively affects their bodies. Guests want flexible menus based on personal taste profiles and dietary preferences, allowing them, for example, to enhance their dish with specific minerals or supplements.”

• Multiple experiences under one roof

Guests want to experience something. “But it goes beyond that. When people visit your business several times a month, they want to be surprised again and again. The experience should therefore change from time to time, or a hospitality concept should offer multiple experiences under one roof.”

• Eatertainment 2.0

The modern guest wants all the senses to be stimulated during a night out. Food is combined with entertainment. “Now, this trend is taking things one step further: eatertainment 2.0. Think, for example, of themed cinemas where the food is adapted to the film being shown.”

• Affordable luxury

Due to inflation, guests are becoming increasingly conscious of where they spend their money. “Today’s consumers are willing to spend a little more when they experience something they are not used to.”

To respond to this, more and more restaurants are offering multisensory experiences at accessible prices. Think virtual light shows or projections of moving images that accompany the dining experience.

“This allows guests to experience a magical show where they can have lunch in an underwater world or dine in the jungle without ever changing location.”

• Dynamic pricing

In the hotel and airline industries, flexible pricing is a familiar concept. But it is increasingly being adopted in the restaurant industry as well. Restaurants have a fixed capacity, so dynamic pricing in the restaurant industry is not primarily used to increase profit margins, but rather to achieve optimal occupancy. With dynamic pricing, restaurants can fill tables during quieter periods that might otherwise remain empty. “With flexible pricing, consumers benefit from lower prices during off-peak periods, while paying a higher rate during peak times.”

• Smart restaurants

Looking at the future, LaRue Pierri predicts the rise of ‘smart restaurants’, taking the concept a step further than projected images on walls and tables.

“With AI tools, hospitality businesses can scan guests’ body language and emotional state, after which it can adjust the atmosphere in the venue accordingly. If most guests are engaged in an enjoyable conversation, the music becomes less loud and more relaxed. But if the atmosphere is upbeat, the volume can be turned up a notch.”