I had this problem on my 2014 S but it was because I tried out an HID headlight. When I would initially turn on the bike the HID would draw a LOT of power and the display would go blank just like in your pic. After about 30 seconds the HID would be warmed up and I could turn the bike off and then back on and the display would work fine. This is because the HID doesn't draw as much power turning on after it has already been warmed up. Even though I really liked the color and brightness of the HID, I switched it out for an LED and everything has worked fine since then.
Assuming you haven't done any mods to your 2016....it could be a bad display or just a loose wire. It could also be a bad DC to DC converter. The dealer shouldn't have any issues troubleshooting and in my experience Zero is really good about dealing with warranty issues. Unfortunately, it may take some time to order parts but they will get it fixed for you.
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