Gen Z's Late-Night Habits Fuel 'Fourth-Meal Economy' for Food Businesses
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Gen Z's tech-driven late-night activities, including streaming and gaming, are boosting the "fourth-meal economy." Fast-food chains and delivery services are seeing increased demand, adapting with extended hours and menu engineering, signaling a permanent shift in the food business.
KI-generierte Zusammenfassung
Despite their notorious attention to matters of health and lifestyle, Gen Z has many more reasons to stay up later than previous generations. Tech allows that work can now be done round the clock by those inclined to stay up late. And on-demand entertainment never sleeps. Binge-watching on streaming platforms has taken over from fixed-time broadcast and cable TV. Online games can be played all night long with players across the globe. For those who still don't have enough reason to stay up after midnight, there's the ongoing Fifa World Cup, which has the biggest viewership in live sport. So much nocturnal activity is good, for business.
Fast-food chains are reporting a spike in late-night online orders. Quick-service restaurants, food delivery companies and QC platforms have seen a 12-15% increase in demand in last two weeks. These restaurant chains operate for extended hours to cater to early breakfasts and late dinners. They can accommodate even longer days or nights. Online food delivery has also geared up to tap into the additional business coming their way. Since food is available and can be delivered, young consumers have a ready fix for their late-night hunger pangs. Older folks accustomed to raiding the fridge are willing converts to the trend. The gig economy can easily handle this change in consumer behaviour beyond the World Cup.
The fourth-meal economy is growing rapidly, led by the Asia-Pacific region. India is a booming market because of outsourcing across time zones. Cloud kitchens and food delivery apps are driving mass adoption. Effects on restaurant margins are mixed. Idle kitchens can be used. But these gains are offset by high delivery commissions and additional wage costs. There is scope to engineer the menu to serve high-margin, low-preparation items like desserts, which can make the economics of late-night operations more favourable. Late-night food delivery represents a permanent reset in the food business that restaurants must adapt to. Hell, it can even be extended to ordering healthy food 24x7.
