People aged 65 and older will account for 18% of all U.S. restaurant spending in 2030, up from just 10% in 2025, according to Technomic.

An aging U.S. population will reshape the restaurant industry in the years ahead, experts say.

A major demographic shift is on the horizon, with all Baby Boomers reaching retirement age by 2030. People aged 65 and older will comprise 25% of the total U.S. population by 2060, up from 18% in 2025. At the same time, people under 30 will make up 31% of the total U.S. population by 2060, down from 38% in 2025.

As a result, people aged 65 and older will account for 18% of all U.S. restaurant spending in 2030, up from 10% in 2025.

That could pose challenges for the restaurant industry. Customers aged 20-33 are “the sweet spot” for foodservice visits because they are usually employed and eat out more often, said David Henkes, senior principal and head of strategic partnerships at Technomic.

But focusing too much on younger consumers can be costly.

“Sometimes restaurants get so hung up on targeting younger, up-and-coming consumers that they lose sight of their core guests,” Henkes said.

Dining behavior is primarily driven by life stage rather than age itself, however, even though the two dynamics are often related.

“My own view is that it follows more the stage of life,” said Chad Moutray, senior vice president for research & knowledge and chief economist at the National Restaurant Association. He noted that as consumers take on mortgages, children and other obligations, their dining patterns tend to follow similar trajectories regardless of generation.

In addition, while older consumers dine out less frequently, they spend substantially more per visit.

“They’re the ones getting appetizers, dessert and maybe alcoholic beverages,” said Ashley Mitchell, VP of marketing for East Coast Wings + Grill. “They’re less price sensitive and more experience driven.”

Gen X is particularly valuable, despite being a smaller cohort than Baby Boomers or millennials, because they are in their peak earning years and have high discretionary income.

“Purchasing power beats the head count for profitability,” said Philip Daus, partner and head of the Houston office at Simon-Kucher.

At East Coast Wings, Gen X consumers are among the chain’s most reliable guests, frequently driving higher check averages, Mitchell said.

A person stands in front of shelves that contain several paper bags with food in them,
Brandon Bell via Getty Images

Off-premise habits harden
In addition, off-premise dining has taken off across full- and limited-service restaurants, regardless of age.

“We certainly have seen an uptick in to-go orders across the board, and it has not gone back down,” Mitchell said.

Source https://www.restaurantdive.com/news/restaurants-preparing-aging-dining-population/814157/