Kids at Restaurants: Who's the Boss?

When families eat out at restaurants, kids play a major role in determining where they go.

By Derek Gale, Associate Editor -- Restaurants & Institutions, 2/1/2007

kids menu Restaurant operators know that in family dining decisions, parents have real power, as they generally are the ones who provide transportation to the restaurant and pay the bill.

Yet it is widely held that kids have significant influence on where families choose to eat (after all, crying or throwing a fit may be the ultimate veto vote). Exactly how much of an impact kids have varies depending on such factors as age, race, socioeconomic status and region.

For example, those age 5 or younger are most likely to frequently influence restaurant visits, while children ages 6 to 18 are more likely to have occasional influence, R&I’s New American Diner study shows. Meanwhile, females, Generation Xers, Asian-American diners and Midwesterners are most likely to say children frequently influence which restaurants they visit.

Youthful impact also may be determined by the nature of the occasion, says Christie Nordhielm, clinical associate professor of marketing at the University of Michigan’s Stephen M. Ross School of Business.

"The child is a stronger influence if there’s guilt happening, or if it’s an event," such as a family deciding to go out to dinner, versus just stopping to grab something, she says. Guilt can be related to parents not cooking at home or not spending enough time with their children, she explains. Either way, "I think guilt is a big factor," Nordhielm says. And "certainly kids are going to be greater and greater influencers the more time-constrained parents are."

Child and family marketing expert Angel Morales says there are different schools of thought on children’s level of impact, but he himself is "a firm believer that a kid has tremendous influence on the decision-making process." And, he notes, "As time goes by, kids have more purchasing power."

Hitting the Target

As marketers, operators first must decide whether to target children or parents with their messages. "The biggest mistake marketers make is trying to be all things to all people," Nordhielm says. "If there are conflicting needs—nutrition for parents, and fun, sugar and fat for kids, you have to go after parents or children. You can’t kind of do both … the message conflicts."

Traditionally, Oak Brook, Ill.-based McDonald’s has been the master of targeting children, and has done a great job of emphasizing fun in the brand’s promotions and advertising, Nordhielm says. The chain’s latest promotion puts popular animated characters in Happy Meals.

But amid growing complaints about marketing to children, some brands are starting to move in different directions, instead targeting parents by promoting healthful items or offers of educational toys with kids meals. Morales, who calls this latter trend "edutainment," says in these cases, parents appreciate that restaurants aren’t just giving out toys, but are trying to help their children learn.

Another strategy targeting parents focuses on the family and the "togethering" experience of dining out. "Marketing messages that resonate are things that strengthen the family bond," says James Chung, president of Belmont, Mass.-based Reach Advisors, a marketing strategy company.

That firm’s research shows parents as less likely to make decisions 100% for the children or for themselves, but more willing to spend on family-focused experiences. This may go back to the guilt Nordhielm says parents often feel over not spending enough time with their kids.

Without dismissing strategies that focus on parents, Morales says restaurants need to target children, and that despite a potential legislative crackdown, there always will be a way to do so, whether directly or indirectly.

"Today you have eBay, MySpace, Facebook, podcasting and a different era of marketing potential," he says. "If not done through television, it will be accomplished through the Internet. The media always provide new and effective tools to pass that marketing message across."

Satisfying Everyone

When families go about choosing where to eat, the common scenario has parents thinking about which restaurants are convenient and child-friendly, and kids thinking about options that are fun. The short list, therefore, often is dominated by quick-service establishments. According to Chicago-based Technomic Inc.’s The Kids Menu Report 2006, "it is likely that limited-service restaurants get kid traffic because they cater to kid needs and parents’ sense of value."

Along value lines, Nordhielm sees an opportunity for fast casual as well. "When you talk about kid-friendly restaurants, it’s not about children, it’s about parents," she says, adding that adults naturally gravitate to places that keep their kids happy and quiet. "With fast casual, the food is appealing to parents. If [those restaurants] could find ways to make themselves kid-friendly such that kids are not bugging parents, you’d probably see some success there."

Another heavy influencer in many families’ decisions is a kids menu. Technomic found that nearly 80% of parents cite the existence of a children’s menu as an important factor in choosing a limited-service restaurant. This approached 90% for parents of 3- to 8-year-olds.

But a kids menu alone, regardless of how good it is, does not guarantee repeat family visits, Morales says. "Parents look at the overall appearance of the restaurant, how clean it is, location and parking, and most importantly, the friendliness and overall customer service of the staff."

Room to Improve

Despite recognizing the power children yield, and understanding that with children come families and bigger checks, Nordhielm believes restaurants could be more effective in serving these young customers. "I don’t think the notion of kid-friendly has been as well defined or well executed as it could be," she says.

She talks about doing simple things such as offering separate, family-oriented dining rooms that provide more space or a better table configuration so kids could get up and move around without disturbing other diners.

McDonald’s already has something like that in the works. As part of the chain’s "Forever Young" campaign, renovated stores and new locations will be divided into zones, including a "family zone" with larger tables for groups. In California, McDonald’s also is rolling out a new in-store kids’ gym concept (replacing the Playplace) for children ages 4 to 12, which includes stationary bikes attached to video games, dance pads, basketball hoops and monkey bars. The gyms also will be divided into zones for different ages.

"The opportunities [to be kid-friendly] are worth the expense," Nordhielm says. "To get repeat customers—that’s what they’re really shooting for."

The easiest way to do that is by treating kids as little adult customers, Morales adds. "Talk to them directly, ask them questions directly," he advises. "Children have their own points of view and they notice these things. Placing the point-of-purchase material at eye level and using copy directed at kids can make a huge difference," especially when it comes to the word of mouth, positive or negative, that children generate.

The Parent Trap

Will children wield as much influence in five years as they do today? Despite parents being increasingly time constrained, "I don’t see [kids’ influence] changing in terms of the amount because of the conflicting forces at work," Nordhielm says. She mentions nutrition education initiatives and children being influenced by their school teachers.

Reach Advisors’ Chung speculates that children may have less impact down the line. "Yes, there are fundamental shifts (such as parents’ time constraints and kids’ access to information) that aren’t going to change that will drive increased influence by children. But the trend shifting the equation, and [the reason] why children won’t have increased impact, is a generational shift in attitude among parents," he says. "Gen X parents are taking more control. This means less of children driving decisions by default."

Chung doesn’t believe the concept of children as influencers and/or consumers is going to disappear, just that it will not continue to increase at the same rate. "Children still will be consumers," he says, and, "of course they will have impact on decisions."