If it looks like there are lots of new drinks on restaurant menus, it is as a result of there are.
Driven by youthful shoppers who crave custom-made, chilly drinks, chains from Dunkin’ to Dutch Bros, Starbucks and McDonald’s are answering the decision.
The variety of drinks provided by the highest 500 chains has elevated by greater than 9% within the final yr, in keeping with Technomic’s 2025 Away-From-Home Beverage Navigator Report. Companies have leaned much more into chilly drinks. Offerings like specialty coffees and power drinks have seen essentially the most development on menus over the previous two years, as scorching espresso and tea drinks on menus decline, the market researcher reported in July.
What’s extra, shoppers are more and more heading to a series merely to get an iced espresso or soda. Last yr, the first driver for beverage gross sales was “getting a pick-me-up,” as 22% mentioned that was their commonest purpose for going, up from 20% in 2023, the information discovered. Meanwhile, 20% mentioned they purchased a beverage to “wash down food.” The two events for a purchase order switched locations from the earlier yr.
“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 mentioned.
An worker delivers a drink to a buyer exterior a Dutch Bros. Coffee location in Beaverton, Oregon, U.S.
Maranie Staab | Bloomberg | Getty Images
Higher drink gross sales are key for main gamers as they search to reverse slumps in a tricky shopper setting. McDonald’s U.S. restaurants saw same-store sales growth of 2.5% in its second fiscal quarter, reversing two straight quarters of home declines because it leaned into buzzy partnerships and worth choices. But executives cautioned low-income shoppers stay challenged. While Starbucks additionally noticed better than expected U.S. sales, they nonetheless fell 2% from the prior-year interval.
Trying to capitalize on the need for buzzy new drinks will convey its personal challenges. Technomic forecasts beverage quantity will develop 1% by means of 2029, however the group mentioned it should seemingly revise that outlook decrease. Customers are additionally extra worth delicate, with 61% of shoppers who mentioned they seen worth hikes saying they order drinks much less typically.
What Gen Z needs
The success of many new beverage strains will hinge on Gen Z shoppers, who’ve flocked to personalized and sugary drinks.
Dunkin’ noticed its colourful and candy Refreshers platform hit new report highs in the latest quarter, with unit gross sales up greater than 30% year-on-year. It will release its fall menu later this week and lean additional into what Gen Z shoppers are searching for.
The rollout will function an enlargement of pop star Sabrina Carpenter’s Daydream Refresher lineup into Mango and Mixed Berry, together with a Cereal N’ Milk Latte, that includes a mix of espresso and actual cereal milk that delivers a “nostalgic marshmallow cereal flavor.”
The curation of drinks is vital for purchasers — and Gen Z shoppers specifically, Dunkin’ Chief Marketing Officer Jill Nelson instructed CNBC. It has to really feel distinctive and particular on this setting.
“On the product side, it’s overwhelmingly about cold beverages, customization and bold flavor,” Nelson mentioned.
“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 mentioned, including that the corporate prioritizes velocity and accuracy as clients ask for extra customization.
The competitors will warmth up subsequent month as McDonald’s enters the beverage class in a extra significant method. On Sept. 2, McDonald’s will launch an expanded market check in 500 eating places throughout Wisconsin and Colorado of new drinks that embody a “Creamy Vanilla Cold Brew” and “Toasted Vanilla Frappe.”
A employee palms a drink to a buyer at a McDonald’s restaurant in Martinez, California, US, on Tuesday, Feb. 4, 2025.
David Paul Morris | Bloomberg | Getty Images
In addition, the quick meals big will roll out “dirty sodas” and Strawberry Watermelon Refreshers, aimed toward Gen Z shoppers. McDonald’s created the lineup with learnings from its now-shuttered CosMc’s idea, which leaned closely into custom-made drinks.
“We’re seeing real momentum in beverages, with more people – especially our Gen Z fans – turning to cold, flavorful drinks as a go-to treat,” mentioned McDonald’s USA Chief Customer Experience and Marketing Officer Alyssa Buetikofer in a release.
On McDonald’s most up-to-date earnings name, CEO Chris Kempczinski mentioned drinks current a “big opportunity” for the model.
“It’s growing and it’s more profitable than food. So, there’s a lot of things to like, which is why us as well as, I think, a few of our competitors are also excited about this,” Kempczinski instructed analysts. He added that whereas there are worth choices within the beverage house, you may get lots of “full margin products” that franchisees wouldn’t must low cost.
The protein play
The new beverage choices transcend the candy and daring. Chains additionally purpose to win shoppers by tapping into well being traits.
An iced vanilla protein latte from Starbucks.
Courtesy: Starbucks
As Starbucks continues its “Back to Starbucks” turnaround plans below CEO Brian Niccol, it’s making extra adjustments to the menu, together with a late fourth-quarter launch of protein chilly foam. On the corporate’s latest earnings name with analysts, Niccol mentioned the merchandise “taps into what has become one of our most popular modifiers, cold foam, which grew 23% year over year.”
“Protein Cold Foam with no added sugar is an easy way to add 15 grams of protein to virtually any cold beverage. And customers can also add the flavor of their choice,” he mentioned.
The espresso big mentioned it is seeing will increase in satisfaction amongst youthful shoppers. Niccol instructed analysts buyer worth perceptions had been close to two-year highs in its most up-to-date quarter, pushed by beneficial properties amongst Gen Z and millennials, who make up over half of its buyer base.
It’s betting that innovation, coupled with higher customer support below its new “Green Apron Service” strategy, will help to boost business.
Coffee chain Dutch Bros has leaned into a few of these beverage traits to drive sturdy development. The chain has been a standout inventory performer — up over 22% year-to-date — and noticed its same-store gross sales enhance greater than 6% in the latest quarter.
CEO Christine Barone mentioned protein milk that launched in 2024 has boosted enterprise. But extra broadly, distinctive and shocking toppings and choices are a method to have interaction in a tricky aggressive panorama, she added.
“I think the key with innovation is to really understand when something might be ready to pop, or something might be of high interest, and then be able to move really fast to execute on it well,” Barone instructed CNBC.
— CNBC’s Drew Troast contributed to this report