The shocking reason why restaurants and food service businesses are losing Gen Z customers—and it's not about the food.
The Silent Customer Exodus That's Costing Restaurants and Food Service Businesses Millions
Ever wonder why some restaurants are packed with young customers while others... well, not so much?
The surprising answer isn't in their menu. It's not in their prices. It's not even in their service.
It's in their trash.
The Truth That's Hiding in Plain Sight
Let's cut straight to the chase: According to First Insight's 2022 report, 73% of Gen Z customers will happily pay more for sustainable packaging. Not just say they will—they're actually doing it.
Think about that for a second.
These are the same customers who hunt for discount codes and split $10 rides. Yet they'll willingly pay extra for sustainability.
But Wait - It Gets Even Better (Or Worse, Depending on Where You Stand)
How about this from Forbes, 2022: Nearly 90% of Gen X consumers said that they would be willing to spend an extra 10% or more for sustainable products.
That's not a typo. 90%.
Translation? If you're still stocking plastic containers while your competitor down the street is going green, you might as well be handing them your customers on a (compostable) plate.
The Proof Is in the Profits
Need more convincing? Look at Unilever. When they tracked their sustainable brands versus traditional ones, the results were staggering. Their eco-friendly brands grew 69% faster than the rest of their business.
That's not just growth—that's rocket fuel for your bottom line.
But Sustainable Packaging Costs More!
Does it? Let's talk about what your current packaging is really costing you:
Lost customers (remember that 90%?)
Rising waste disposal fees
More storage space needed
Future regulation compliance costs
Brand reputation damage
The Smart Way Forward
Here's where it gets interesting. The market has evolved. Modern sustainable packaging options like bagasse (a fancy word for sugarcane waste) are:
Naturally biodegradable
Perfect for hot foods
Strong enough for heavy dishes
Better for your brand image
The Real Decision You're Making
When you choose packaging, you're not just picking containers. You're choosing:
Which customers you'll attract (or lose)
How relevant your business will stay
Your future operating costs
Your brand's story
Taking Action (Without Breaking the Bank)
Start smart:
Switch your most visible items first (takeout containers, cups)
Look for certified products (BPI, TÜV Austria OK Compost Home)
Tell your customers about the change
Track the response
The Future Is Already Here
According to IBM's Global Consumer Study, 2022, they found that over 60% of Gen Z and Millennials actively seek out companies with environmental commitments. They're not just hoping to find them—they're actively searching.
The question isn't whether to switch to sustainable packaging. It's whether you'll do it before or after your competitors.
Your Next Move
The evidence is clear. The market is moving. The only question is: Will you lead or follow?
Start with one item. Track the response. Watch what happens.
Your customers, your bottom line and Mother Earth will thank you.
Looking to transition to eco-friendly, sustainable packaging and tablewares or re-evaluating your current cost of purchasing these items, talk to our team at SoGreenPack. We’d be happy to help.
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