Rise of the Zoomers: How Gen Z is Shaping the Future of Foodservice Distribution

Technology is going to continue to shape the foodservice distribution industry throughout 2024 and beyond. Artificial intelligence (AI), virtual reality, drones and robotics are just some of the trends gaining momentum in the logistics industry. From streamlining operations to creating immersive customer experiences the appetite for digital transforming has exploded. Companies want more control over customer experiences and all the advantages that a direct relationship with your customer can bring. With the continual drive to optimise efficiency and productivity, organisations face several challenges. The impact on the labour market of Brexit, an ageing population, and a general lack of awareness around working in logistics, all contribute to these challenges. To achieve their future goals, food wholesalers and distributors will need to focus on hiring and retaining the latest generation of workers, Gen Z.

So what do we know about Gen Z?

Born between 1997 and 2012, this is the first generation to grow up entirely in the digital age with a unique set of characteristics, challenges and opportunities that set them apart from previous generations.

Growing up in the age of the internet, smartphones and ever advancing technology, Gen Z or Zoomers, are especially open to technical innovation in the workplace. They are tech savvy, highly connected and independent learners having had access to unprecedented amounts of knowledge via the internet. They are more likely to search for answers themselves than ask for advice. They tend to be open minded having been shaped by significant cultural and political milestones whilst growing up in a diverse and interconnected global society. They tend to be competitive about achieving their career goals and are willing to work hard to achieve them but want to be recognised and feel valued for that hard work. Having lived through periods of major economic turmoil that has affected both them and their families they are also risk averse and seek stability in their everyday lives.

Warehousing and distribution centres are not the typical dream job for Gen Z and the industry has an increasingly ageing workforce. Gen Z will make up 27 percent of the workforce in OECD countries by 2025.

So what’s going to be key in attracting and retaining these workers?

• Career growth trumps compensation, setting them apart from previous generations - Employers will need to invest in their employees’ personal development to meet aspirations.
• Provide flexible working patterns - This is likely to be one of the main considerations that will cause Zoomers to leave their employment.
• Offer competitive compensation and benefits - It still matters but employers need to understand Gen Z’s primary concerns. Half of Gen Z do not state their mental health as good and suffer from high stress levels. Stressors include financial concerns, family welfare, long work hours and lack of recognition. Retirement and flexible working are likely to top the list of sought after benefits along with management of emotional health.
• Focus on skills-based hiring. Zoomers have a strong desire to learn new skills which will make up for lack of experience.
• Prioritise diversity, equity and inclusion - This is not only more likely to attract Gen Z but to retain them as well.
• Highlight company culture and values - Work remains key to the identify of this generation and nearly all Gen Z want purpose driven work and are not afraid to turn down work that does not align with their values.
• Environmental sustainability continues to be a top priority - It’s a personal concern that weights heavily on them and they want businesses to enable consumers to make more sustainable purchasing decisions. This is an area perceived as being where businesses have the most opportunity to drive change.
• They are more likely to view AI has having a positive effect on their work and to improve their work/life balance - But this also comes with concerns that AI will eliminate jobs and make it harder for younger workers to enter the workforce. For this reason, they may seek jobs less vulnerable to automisation and look for employers who focus on reskilling and training opportunities.
• Once employed they are more likely to push for change than previous generations - Particularly regarding workload, services offered to customers, learning and development, diversity equality and inclusion, wellness, social impact and environmental efforts. Employers need to be prepared for this.

Gen Z and new technology

Food wholesalers and distributors should note that Gen Z’s want to work for a company that is actively embracing new technology. They may have a different approach in their working and thinking styles but can be of tremendous value. They have the fresh minds that could help to unlock critical innovation and are comfortable exploring new technologies and finding ways to leverage them. Gen Z’s ability to latch on to new concepts and uncover new pathways to efficiency means they will quickly grasp how to manage new technology and play a key role in its implementation. Due to their upbringing with technology and the internet at their fingertips, they tend to be visual learners, raised with video as a primary means of communication and enjoy getting hands on with a concept. They will frequently ask why things are done a certain way and won’t accept the answer that it’s always been done that way. That’s an approach that leaders need to get comfortable with.

In June 2023 the government renewed its backing of the sector led Generation Logistics initiative with a further £300,000 of funding. This involves a broad 33-point plan to engage Gen Z and Gen Alpha (early 2010’s – 2025) to encourage them to work in the sector. To conclude, logistics and distribution is the perfect field for the inquisitive Zoomer generation as the industry moves through a period of massive digital transformation. Social media savvy and technologically literate Gen Z bring an informed perspective to technological innovations. But employers need to be ready for them, adapting their organisations to meet expectations. If done well, Gen Z could help unlock the pathway to digitisation and help propel their organizations into the future.

For more insights on integrating AI into your foodservice distribution business, check out our guide: CSD Guide - 5 Steps on how to bake AI into your foodservice business.

By embracing new technology such as Qnetex ERP system, food wholesale and foodservice businesses can stay ahead of the curve and ensure efficient operations in this dynamic landscape.