From sweet treats to protein boosts, chains are banking on beverages to drive sales

by | Aug 19, 2025 | Business

In this articleMCDFollow your favorite stocksCREATE FREE ACCOUNTIf it feels like there are a lot of new drinks on restaurant menus, it’s because there are.Driven by younger consumers who crave customized, cold beverages, chains from Dunkin’ to Dutch Bros, Starbucks and McDonald’s are answering the call.The number of beverages offered by the top 500 chains has increased by more than 9% in the last year, according to Technomic’s 2025 Away-From-Home Beverage Navigator Report. Companies have leaned even more into cold drinks. Offerings like specialty coffees and energy drinks have seen the most growth on menus over the past two years, as hot coffee and tea beverages on menus decline, the market researcher reported in July.What’s more, consumers are increasingly heading to a chain simply to get an iced coffee or soda. Last year, the primary driver for beverage sales was “getting a pick-me-up,” as 22% said that was their most common reason for going, up from 20% in 2023, the data found. Meanwhile, 20% said they bought a beverage to “wash down food.” The two occasions for a purchase switched places from the previous year.”This shift suggests that consumers may be moving toward more beverage-specific occasions, where beverages are the main driver of the foodservice purchase rather than an add-on to go alongside food. This aligns with the influx of beverage-forward concepts in recent years,” the report said.An employee delivers a drink to a customer outside a Dutch Bros. Coffee location in Beaverton, Oregon, U.S.Maranie Staab | Bloomberg | Getty ImagesHigher drink sales are key for major players as they seek to reverse slumps in a tough consumer environment. McDonald’s U.S. restaurants saw same-store sales growth of 2.5% in its second fiscal quarter, reversing two straight quarters of domestic declines as it leaned into buzzy partnerships and value offerings. But executives cautioned low-income consumers remain challenged. While Starbucks also saw better than expected U.S. sales, they still fell 2% from the prior-year period.Trying to capitalize on the desire for buzzy new drinks will bring its own challenges. Technomic forecasts beverage volume will grow 1% through 2029, but the group said it will likely revise that outlook lower. Customers are also more price sensitive, with 61% of consumers who said they noticed price hikes saying they order beverages less often.What Gen Z wantsThe success of many new beverage lines will hinge on Gen Z consumers, who have flocked to customized and sugary drinks.Dunkin’ saw its colorful and sweet Refreshers platform hit new record highs in the most recent quarter, with unit sales up more than 30% year-on-year. It will release its fall menu later this week and lean further into what Gen Z consumers are seeking.The rollout will feature an expansion of pop star Sabrina Carpenter’s Daydream Refresher lineup into Mango and Mixed Berry, along with a Cereal N’ Milk Latte, featuring a blend of espresso and real cereal milk that delivers a “nostalgic marshmallow cereal flavor.”The curation of drinks is key for customers — and Gen Z consumers in particular, Dunkin’ Chief Marketing Officer Jill Nelson told CNBC. It has to feel unique and special in this environment.”On the product side, it’s overwhelmingly about cold beverages, customization and bold flavor,” Nelson said.”And then on the promotion side … when we think about Gen Z, this is a generation that grew up on sneaker drops and stories that disappear in 24 hours. So it’s all about how do you create new news and interesting flavor combinations that you can’t really recreate easily at home and feel like you’re in the know when you go to the drive through and order them,” she said, adding that the company prioritizes sp …

Article Attribution | Read More at Article Source