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What every coffee and foodservice operator should know about Generation Z
Essential insights to help your business connect with the decade’s most influential consumers.
Generation Z - born between 1997 and 2012 - is the most scrutinized generation in history, and one of the most influential consumer groups shaping the future of coffee and foodservice worldwide. Globally, they make up 25% of the population, command an estimated USD 450 billion in disposable income, and are reshaping menus at speed.1 But they are not simply younger millennials: research shows they are navigating a reality defined by pressure, trade-offs and a need for stability, prioritizing calm and control over aspirations.2 Here are the five things every operator should know, and how to act on each.
1. They are drinking coffee younger - and more often
Gen Z is entering coffee earlier and visiting more frequently than older cohorts. In China, 24% of consumers under 25 visit coffee shops daily or multiple times a day, versus just 11% of over-45s - driven by affordable, digital-first chains like Luckin and Cotti, with 77% of Chinese Gen Z regularly ordering via a coffee shop app. [1]
In the US, Gen Z has overtaken millennials as the most frequent quick service restaurant visitor, ordering an average of 4.5 beverages a week versus a 3.5 industry average - a high-margin opportunity given beverage margins of 60–80%. [3] This youthful momentum is global: Gen Z represents 25% of the world’s population and commands roughly USD 450 billion in disposable income worldwide. [1]
What we're seeing in foodservice
Younger consumers aren't just drinking coffee; they're exploring and experimenting in the coffee category. For operators, that means more opportunities to engage guests throughout the day and turn occasional visits into routines.
Put it into practice: Lower the barrier to entry with approachable, app-enabled ordering and a strong beverage-led offer - beverages are where Gen Z over-indexes and margins are highest.
2. Iced, customizable and experimental is the new default
Across markets, Gen Z is rejecting “sameness.” A global survey of more than 1,000 young consumers and professionals across 60+ countries, run with Switzerland’s ZHAW Coffee Excellence Center, shows a strong preference for customizable, iced and flavored drinks consumed all day - with espresso increasingly reserved for mornings, if at all.1
The regional data echoes this: in China, 48% of under-25s say iced beverages appeal year-round (versus 31% of over-45s), and 41% added coconut cream to their coffee in 2025.1 In the US, more than a fifth of under-25s drink cold coffee daily, compared with just 8% of over-60s.1 TikTok-fueled “maxxing” trends - from Philippine ube lattes to “proffee” and cloud coffee - are pushing customization into the mainstream.1
What we're seeing in foodservice
"Cold and customizable beverages are no longer a trend we're watching, they're becoming part of consumers' everyday expectations. Operators who can offer variety while keeping service simple are often best positioned to capture this growing demand."
-Christos Sotiros, Nestlé Professional Master Barista and Coffee Expertise Lead
Put it into practice: Build a cold-first, highly customizable menu with bold flavors and functional add-ons, and refresh it fast - a photogenic signature drink can trend overnight but also fade quickly.
3. If it isn’t photogenic, it’s invisible
For Gen Z, social media is the menu and the map - and authenticity is everything. When an Instagram skit by a former Love Island Australia contestant mocking a “normal” flat white racked up over a million likes in 2026, it signaled how fast tastes are shifting.1 As the Chief Brand Officer of Czech specialty group The Miners puts it, “your real competition isn’t just the café down the road, but matcha, energy drinks and RTD too - if it’s not photogenic, it’s basically invisible to Gen Z.” 1
The payoff is real: UK dairy-alternative brand Minor Figures generated 17 million impressions and six million engagements from a single influencer-led TikTok and Instagram campaign.1 But polished corporate marketing backfires - brands that try too hard risk being branded “cheugy.” Research underlines why authenticity resonates: Gen Z wants brands that make life feel easier and more manageable, not more aspirational.2
What we're seeing in foodservice
Consumers are looking for experiences worth sharing, not just beverages worth drinking. Operators who combine quality coffee with memorable moments can create stronger engagement both in-store and online.
Put it into practice: Design at least one signature, filmable drink, treat social channels as a community (reels, contests, UGC) rather than an ad space, and let customers co-create the content.
4. Wellness and pragmatism are reshaping the menu
Gen Z is drinking less alcohol and gravitating toward functional, wellness-inspired options - a major opportunity for coffee and beverage operators. In the US, Starbucks reported a 70% rise in tea sales since 2022, largely driven by matcha, across its 10,000+ company-owned stores.1 In the UK, Manchester Airports Group saw Gen Z travelers drive matcha and smoothie sales up 165% and 650% year on year, as fast food and alcohol declined.1
Brazil-founded chain The Coffee, with 330+ stores across 22 markets, is explicitly positioning coffee and matcha as a non-alcoholic, functional alternative.1 This pragmatism is financial too: Deloitte’s global survey of 23,000+ respondents found 48% of Gen Z do not feel financially secure and more than half live paycheck to paycheck - so wellness has to come with clear value.4
What we're seeing in foodservice
Consumers increasingly want products that align with their lifestyle, but they remain highly value-conscious. The strongest offers balance quality, wellness and affordability without asking consumers to compromise.
Put it into practice: Expand your wellness-inspired range – matcha and other functional beverage options - and pair a genuine wellness or sustainability story with transparent, fair pricing.
5. They come for community, not a logo
Gen Z is far less likely to treat a branded cup as a badge of honor, and far more likely to value meaningful, participatory experiences. As Melitta’s global product manager observes, “Gen Z want to co-create drinks, spaces and atmospheres together with the brand - they want to be part of the community.” 1
Operators worldwide are responding; India’s Nothing Before Coffee (100+ stores) hosts game nights and alcohol-free morning “raves,” shifting to calm co-working and book-reading spaces on quieter days; Denmark’s Joe & The Juice and boutique group EL&N built intentionally photogenic, community-first stores; and Starbucks is reinforcing its “third place” positioning by encouraging longer dwell times.1 The appetite for shared experience spans regions - across the GCC, Gen Z diners are markedly more open to communal, shared-table formats than older generations.5
What we're seeing in foodservice
Coffee shops are becoming places to connect, work, learn and spend time. Operators that create spaces people want to return to can build loyalty that extends well beyond the coffee itself.
Put it into practice: Design for participation and connection - flexible, welcoming spaces, community events, and co-creation - so your café becomes a destination and a lifestyle, not just a transaction.
How to be relevant to Generation Z
Winning with Generation Z is not about chasing every viral moment. It is about understanding how their expectations are reshaping coffee and foodservice. Operators that combine relevance, consistency and authentic experiences will be best positioned to earn loyalty from the industry's next generation of consumers.
Frequently asked questions
Why is Generation Z so important for coffee and foodservice?
Globally, Gen Z commands an estimated USD 450 billion in disposable income and is drinking coffee younger and more often - making them critical to the future of the category.1
What kind of coffee does Gen Z want?
Iced, customizable, flavored and experimental - a preference confirmed across 60+ countries - with espresso increasingly reserved for mornings, if consumed at all.
How should operators market to Gen Z?
Authentically and visually. Treat social channels as a community, create content people want to share, and focus on making life easier rather than more aspirational.
Sources
- World Coffee Portal / 5THWAVE (Global - Everything your coffee business needs to know about Gen Z (subscription required)
- Buzzback - Webinar Part 1: Gen Z Isn’t Who You Think
- QSR Pro - Gen Z Has Overtaken Millennials as QSR’s Most Frequent Customer (2026)
- Deloitte - Global Gen Z and Millennial Survey 2026
- Mirzaee Group - How Gen Z Is Reshaping Restaurants, Cafés & Hospitality Spaces in the GCC
- Hovi Digital - Social Media Marketing in GCC & MENA: The Definitive Guide (2026)