Designing for Digital Natives: How Gen Z is Shaping Café, Restaurant, and Retail Interiors for SMEs

Gen Z, the generation born between 1997 and 2012, is becoming a major force in the consumer world. As digital natives, they’ve grown up with smartphones, social media, and on-demand services, making them highly influential in shaping the future of small and medium-sized enterprises (SMEs). Their preferences for technology, sustainability, and shareable experiences are transforming the way cafés, restaurants, and retail stores are designed. In this blog, we’ll explore how SMEs can adapt their interiors to attract Gen Z customers, with actionable examples to inspire your next renovation or redesign.

Embracing Technology for Efficiency and Experience

Gen Z customers expect technology to be integrated into every aspect of their shopping or dining experience. For SMEs, this doesn’t have to mean high-cost investments but smart choices that make customer interactions smoother and more engaging.

Everlane, known for its transparent approach to fashion, has opened pop-up retail spaces where customers can use virtual reality stations to learn about product sourcing and sustainability. For smaller retail stores, investing in tablet kiosks or smart displays can offer Gen Z the product information they want, enhancing the in-store experience while keeping overhead costs manageable.

Everlane Denim Counter Pop Up, NYC

Sustainability as a Core Design Element

Gen Z is passionate about sustainability, and SMEs can capitalise on this by making eco-friendly choices that are visible and authentic. Whether you run a café, a restaurant, or a retail shop, integrating sustainable practices into your design can build loyalty among Gen Z consumers.

Ozone Coffee Roasters, a popular independent café in London, takes sustainability seriously by using locally sourced, reclaimed wood for its furniture and up-cycled materials throughout the space. The café also integrates energy-efficient lighting and promotes zero-waste practices, offering customers the option to bring their own cups for discounts. SMEs can take inspiration from Ozone’s focus on sustainable design and practices, which aligns with Gen Z's preference for eco-conscious businesses.

Ozone Coffee Roasters, London

Creating Instagrammable, Shareable Experiences

For Gen Z, a visit to a café, restaurant, or store isn’t just about the products or services—it’s about the experience. SMEs should consider how their interiors can become shareable on social media, making every visit an opportunity for free marketing.

Bun House is a modern Chinese bun shop in London showcases colourful and vibrant interiors that are perfect for social media sharing. The decor features bright neon signs and unique wall art, creating a lively atmosphere that encourages diners to snap photos of both their food and the environment. The restaurant's signature bao buns are also presented in visually appealing ways, making them highly shareable on platforms like Instagram

Bun House, London

Blurring the Lines Between Digital and Physical

Gen Z expects a seamless integration of online and offline experiences, so businesses must think about how to blend their digital presence with their physical spaces. For SMEs, this can be as simple as offering online ordering, click-and-collect services, or in-store events promoted via social media.

PANGAIA's immersive pop-up experience at Selfridges in London exemplifies how brands are designing engaging retail spaces that resonate with Gen Z. This installation combines vibrant visuals with interactive elements, inviting visitors to explore the brand’s commitment to sustainability through innovative technologies like their signature PPRMINT fabric treatment, which helps clothes stay fresher longer. By creating a visually stunning and educational environment, PANGAIA not only showcases its products but also fosters a sense of community and awareness around eco-friendly practices, making every visit shareable on social media

Pangaia, Pop-Up Selfridges

Personalization and Customisation

Gen Z loves brands that offer a personalised experience, which can be achieved through customisation options or flexible design choices. For SMEs, providing customers with the ability to tailor their experience is a great way to stand out.

Matcha Bar offers a personalised experience through its loyalty program and customised drink options. Small cafés and retail shops can implement similar features, offering membership cards or customisable menus that allow customers to tailor products or services to their preferences, making the experience feel more personal and tailored to individual tastes.

Matcha Bar, Los Angeles

Community and Social Spaces

Gen Z values community and loves spaces that facilitate interaction. SMEs can attract this generation by creating areas that encourage socialising, such as cozy seating areas in cafés or communal tables in restaurants.

Costa Coffee serves as a prime example for SMEs aiming to build community-centric spaces that appeal to Gen Z. The chain’ s latest design creates inviting environments with cozy seating and communal tables, making it an ideal spot for customers to work, socialise, or unwind. By incorporating local design elements and engaging with community initiatives, such as supporting local charities and hosting events, Costa has become a focal point for connection and interaction. Small and medium enterprises can emulate this model by crafting warm, welcoming interiors that promote community involvement and facilitate customer interactions, ultimately driving brand loyalty and enhancing overall customer satisfaction

Costa Coffee, Plymouth

Localism and Inclusivity

Gen Z loves brands that are connected to their local communities and prioritise inclusivity. SMEs are often well-positioned to incorporate local culture into their designs and reflect the diversity of their neighbourhoods.

Café Kitsuné taps into local culture by blending Parisian café culture with Japanese minimalist design, creating a space that feels authentic and unique. SMEs can highlight local artists, makers, and craftspeople in their design, incorporating elements that reflect their neighbourhood or customer base.

Cafe Kitsune, Paris

Conclusion

For small and medium-sized cafés, restaurants, and retail businesses, catering to Gen Z isn’t just about adapting to trends; it’s about creating spaces that reflect their values—technology integration, sustainability, personalisation, and community. By making small but thoughtful design changes, SMEs can attract and retain this influential generation. Whether through integrating self-service tech, creating eco-friendly interiors, or offering shareable experiences, SMEs can ensure they resonate with the growing power of Gen Z.

Interested in hearing more about designing for digital natives?

Since 2020, Ciara Petty Design Studio has become the leading destination for exceptional design solutions, serving retailers, foodservice operators, and hospitality businesses nationwide. With locations in Ennis and Dublin, we are strategically positioned to cater to clients across the country. With a visionary design team and unmatched attention to detail, we make a lasting impression that sets you apart. Unlock your business's potential with Ciara Petty Design Studio and discover the transformative power of design. For more information visit ciarapetty.com/about.