Fast-food chains are going all in on fun beverages to attract younger consumers, wrote CNBC. “Chick-fil-A, known for its straightforward menu of fried chicken and waffle fries, is selling seasonal pineapple dragon fruit drinks. Yum Brands’ Taco Bell installed a beverage concept called Live Mas Café inside one of its California locations. McDonald’s is in its second year of testing its drinks-focused spinoff, CosMc’s. Restaurant operators are betting that drinks with exotic flavors, bright colors and high caffeine and sugar counts will mean higher sales—and better margins.”
QSRs are increasingly adding beverage options like refreshers and agua frescas, while also expanding specialty iced coffee, hot chocolate and energy drink options, according to market research firm Datassential.
Their recent focus on drinks mirrors that of the broader restaurant industry as the number of beverage-focused concepts climbs. More regional coffee shops are “coming for Starbucks’ crown,” said CNBC. Plus, consumers have embraced buying drinks beyond coffee, such as bubble tea and “dirty soda.” The trend also follows the “decadeslong decline in soda consumption since its peak in 2000.”
Other restaurants are hoping hot chocolate and flavored lemonades can help build loyalty with Gen Z consumers. Compared to previous generations, Gen Z “is the most open to new flavors and comes from the most diverse backgrounds. Gen Z’s openness gives fast-food chains more latitude to explore more unusual offerings, such as butterfly pea or ube,” reported CNBC.
Traditionally, large QSRs have been less likely to experiment with bold flavors but have stepped outside of their comfort zones of late, wrote CNBC. For example, Wendy’s current lemonade lineup includes blueberry pomegranate and pineapple mango.
“We think of it as ‘little treat’ culture. What I can spend is in the grand scheme of things, not a huge sum of money, and yes, I can splurge on this big sugary drink,” Claire Conaghan, trendologist and associate director for Datassential, told CNBC. “I think the younger consumer is pretty aware that they’re full of sugar, but they’re OK with that as their preference for where they get their sweet treat.”
Taco Bell’s experiential Live Mas Café’s menu features more than 30 drinks. Highlights include refrescas that are caffeinated with green tea or Rockstar energy drinks, churro chillers and a “Dirty Baja,” made by adding cream to its signature Baja Blast Mountain Dew.
Read more about how emerging beverages are designed to create experiences for consumers in “Beyond Taste,” in the August 2024 issue of NACS Magazine.
Learn how dispensed beverages performed in the c-store sector in 2024 at the NACS State of the Industry Summit April 8-10 in Dallas.