And good riddance to most of these. Golf? Diamonds? Hooters? Good riddance for sure.
Aug. 20, 2017
Millennials’ preferences are killing dozens of industries.
There are many complex reasons millennials’ preferences differ from prior generations’, including less financial stability and memories of growing up during the recession.
“I think we have got a very significant psychological scar from this great recession,” Morgan Stanley analyst Kimberly Greenberger told Business Insider.
Casual dining chains like Buffalo Wild Wings and Applebee’s
Brands such as Buffalo Wild Wings, Ruby Tuesday, and Applebee’s have faced sales slumps and dozens of restaurant closings as casual-dining chains have struggled to attract customers and increase sales.
In August, Applebee’s announced it would close up to 135 restaurants, in part because it focused too much on winning over millennials and forgot its “Middle America roots.”
“Millennial consumers are more attracted than their elders to cooking at home, ordering delivery from restaurants, and eating quickly, in fast-casual or quick-serve restaurants,” Buffalo Wild Wings CEO Sally Smith wrote in a letter to shareholders earlier this year.
In late July, Goldman Sachs downgraded both Boston Beer Company and Constellation Brands based on data suggesting that younger consumers prefer wine and spirits to beer, as well as the fact that they’re drinking less alcohol than older generations more generally.
Beer penetration fell 1% from 2016 to 2017 in the US market, while both wine and spirits were unmoved, according to Nielsen ratings.
While some argue that calling a 1% drop in penetration a beer-industry homicide case is an overreaction, small shifts have a huge financial impact on beer industry giants. Beer already lost 10% of market share to wine and hard liquor from 2006 to 2016.
The Post points to a survey conducted by Mintel, which highlights that only 56% of shoppers said they bought napkins in the past six months. At the same time, 86% surveyed said they had purchased paper towels.
Paper towels are more functional than napkins and can be used for more purposes. And the Post noted that millennials are more likely to eat meals out of the home, contributing to the decline.
“Breastaurant” chains like Hooters
Business Insider Video
People ages 18 to 24 are 19% less likely to search for breasts on the pornographic website Pornhub compared with all other age groups, according to an analysis conducted by the website.
For “breastaurants” like Hooters and Twin Peaks, a loss of interest in breasts is bad for business. The number of Hooters locations in the US has dropped by more than 7% from 2012 to 2016, and sales have stagnated, according to industry reports.
Hooters has struggled to win over millennials for some time now. In 2012, the chain attempted to revamp its image with updated decor and new menu items to attract more millennial and female customers.
Unsplash / Jennifer Pallian
Instead, younger consumers are turning to convenient options with minimal cleanup that can be eaten on the go, from yogurt to fast-food breakfast sandwiches.
Cereal sales dropped 5% from 2009 to 2014, even though more Americans are eating breakfast than ever before.
Companies such as Kellogg and General Mills have reported that sales have stopped falling in 2017, so cereal may not be dead just yet.
“From the golf industry statistics, we know that rounds are down,” Matt Powell of the industry-research firm NPD said in a video in 2016. “We know that millennials are not picking up the game, and boomers are aging out. The game is in decline.”
While millennials have created new fitness crazes, like SoulCycle and barre classes, golf has failed to capture their interest in the same manner.
“Our data suggests the younger Gen Y population is adopting motorcycling at a far lower rate than prior generations,” AB analyst David Beckel said in a July note downgrading its rating of Harley-Davidson shares from “outperform” to “market perform.”
Motorcycle sales at Harley-Davidson, which represents about half of the US big-bike market, were down 1.6% overall in 2016 versus the year before. US sales fell 3.9%.
The company shipped 262,221 motorcycles overall, which fell short of expectations of 264,000 to 269,000 units.