Customer behaviour across the hospitality sector is changing. Adults of all ages are going out with different expectations, priorities and purchasing habits. Patrick Clover, CEO and Founder, Stampede, explains the important role that data plays in helping growing SME hospitality businesses define and refine their proposition, and meet all generations’ guest needs appropriately.
Some people eat out earlier in the day, some don’t. Some drink, but visit venues more often. For some, the visit is about convenience and price. Whereas for others it’s about exclusivity, a sophisticated menu and ambience. These needs differ from person-to-person and are certainly not uniform across all generations either. Additionally, depending on who you speak with, some suggest that targeting Millennials instead of Gen Z is the way towards success. But is this assumption entirely accurate and how can smaller operators drive true long-term growth?
Who is my customer, really?
For many independent venues, decisions are made based on instinct, familiarity or on what has ‘always worked’. However, with tightening margins, these operators desperately need a clearer picture of who – exactly – is walking through their doors. Is it the Silent generation? Is it a Boomer? Or is it in fact Generation X (GenX), a Millennial or Generation Z (Gen Z)?
What are they ordering? What days and times are they coming in? How much are they spending? Which staff and table locations are they more receptive to? Or, what beer, cocktail or meal is driving revenue at a particular restaurant, bar or pub?
Of course, some venues are purpose-built and designed around the specific needs of the various generations mentioned. However, for many smaller operators, the audience is likely more mixed and in either instance, guest data informs success.
Without accurate guest profiles and spend data adding the colour and detail to the picture of who a customer really is – Millennial, Gen Z or otherwise – how can operators really tell whether their food and drink proposition is working and whether or not they need to diversify any of it? Is marketing to Millennials still working for them, for instance or do marketing horizons need to be broadened or refined?
This kind of guest insight can enable a struggling or growing venue to thrive and is especially important for those newer businesses taking their first steps. Without access to customer data, it can be challenging for smaller or more independent operators to establish a long-term, strategic, profitable way forward that meets their growing customer bases’ needs, irrespective of the age and gender demographics they attract.
Data-based growth
Capturing the right data and using the correct technology is vital; it provides an accurate view of the state of play within a business. Many SMEs may worry about the complexity or cost associated with employing these technology solutions; however, this doesn’t need to be a concern.
AI-enhanced, guest engagement platforms that unify data from multiple customer touchpoints can offer these hospitality businesses a strategic and practical answer, which helps drive operational costs down and revenue up – even while paying for these technology developments too. These modern technologies are enabling operators to capture, segment, market to and retain customers more effectively according to behaviours instead of demographic guesswork. They are enabling smaller teams to bring more of the right kinds of customers back through the doors. Those that drive loyalty and long-term growth.
When someone makes a table booking via a restaurant’s website or logs on to the Wi-Fi at a pub or bar, data should be captured into a guest engagement platform. Or, when guest profile data is integrated into a payment platform like Square’s POS, this customer data becomes even richer, providing insight about what has actually been purchased during visits to a restaurant, bar or hotel. This enables operators to instantly see how often someone visits, what the average spend per head is, drink and food preferences, or whether they responded to a particular promotion.
What is key within this scenario is that the data being captured is centralised and easy to act upon, providing insight to marketing teams about their next steps.
Data-led diversification is not an option
The Guardian spoke with CGA research recently. CGA points out that during 2025 the number of pizza restaurants had fallen from 5,000 to 3,750. Within this same piece, The Guardian reports Domino’s Pizza Group’s Chief Executive announced he had ‘stepped down with immediate effect’ and explained that, ‘it was ‘pretty obvious’ the group should broaden its menu’, in order to compensate for rapid growth in the fried chicken market.
While this example focuses on a larger operator, it highlights a wider truth affecting the entire hospitality sector: when customer preferences shift, the businesses that fail to respond are the ones to quickly feel the impact.
For SMEs, the stakes are often even higher. A handful of poorly performing menu items or a missed shift in demand, can have a significant impact on profitability. However, with reliable guest data, restaurants, pubs and hotels can track emerging patterns: ranging from falling interest in specific items to rising demand for alternatives, enabling them to diversify with confidence.
Data doesn’t pigeon-hole customers by generation either. Instead, it reveals what they value and desire. This insight provides operators the clarity to evolve marketing, outreach and guest engagement in ways that meet every guest and generation’s needs.
Assumptions can be tested and clarified. And in a market where behaviours are shifting quickly, diversification guided by real data – not guess work – offers the most reliable foundation for growth for SMEs and/ or independent operators.
Finally, instead of guessing whether to market to Millennials or Gen Z or the various other generations available to connect with, perhaps it is time for SME hospitality businesses to let data be their guiding light?
