How QSR Beverage Innovation is Changing the Restaurant Industry

The simple drink menu has become America's quick-service restaurants' most powerful tool. From Taco Bell's Churros Chillers to McDonald's colorful refreshers, chains are investing heavily in beverages to increase profits and draw younger customers.

"Beverages are among some of the few categories that have strong margins and high upsell potential," said Melissa Mackay, senior vice president of marketing and insights at Westrock Coffee. "A $4 coffee or a refresher can easily turn a $7 sandwich into a $12 check."

The change is striking. Walk into a Starbucks today, and you'll find customers ordering drinks that barely look like traditional coffee. "A huge proportion of consumers that go to Starbucks, for example, have no interest in a coffee beverage. It's been really a sweet-flavored beverage that might have coffee in it, but I wouldn't say the coffee's the core product," explained Nicholas Stone, founder and executive chairman of Bluestone Lane.

Leading this beverage change are refreshers - light, fruity drinks that pack caffeine without coffee's boldness. These drinks typically use green tea or lemonade bases and appeal to health-conscious consumers wanting energy boosts with lower sugar content than traditional sodas.

"They're much lighter on the palette, so definitely not as heavy or thick as a coffee or as bold as a coffee. They're easily flavored, too," Mackay noted. The visual appeal matters equally - their light colors photograph beautifully for social media, unlike coffee's darker tones.

Major chains have embraced the trend enthusiastically. Taco Bell launched its Refresca platform, while Whataburger debuted Whatafreshers. Even McDonald's is testing refreshers, including a Strawberry Watermelon variety and a Popping Tropic option that reflects Gen Z's preference for "cold, flavorful drinks as a go-to treat," according to Chief Customer Experience and Marketing Officer Alyssa Buetikofer.

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These beverage innovations aren't just changing what people drink - they're changing when they drink it. "Refreshers, as they've come onto the scene, and grown more in popularity, are creating that afternoon daypart," Mackay observed.

The shift benefits snack occasions over traditional meal times. Ashley Peeples, senior vice president of sales and marketing at Royal Cup Coffee & Tea, explained that consumers are adding beverage occasions rather than replacing coffee entirely: "The beverage pie is getting more entries."

This trend is reshaping dining habits in expensive markets. Stone noted that consumers facing $100-per-person restaurant bills are choosing more affordable cafe experiences: "A lot of people are saying, 'rather than going out for dinner twice a week, I'm going to go out for dinner once, and I'll go to a great cafe experience and probably spend $30 a head at the cafe.'"

Yum Brands has turned beverage prediction into an art form using their 35-person Collider Labs unit. "Our entire job is to look at where culture is going, look at where consumers are headed and then inform the brands. And we do that years ahead of time," said Chief Marketing Officer Ken Muench.

The company even uses prediction markets, asking hundreds of consumers to bet on which drinks will succeed. "We are much better predictors of other people's behavior," Muench explained, comparing it to knowing "before your roommate knows that he's going to break up with his girlfriend."

KFC has embraced this data-driven approach through its Kwench concept, featuring premium beverages like crunchy milkshakes. The brand operates on a simple philosophy: "Come for the beverage, stay for the chicken."

As restaurant traffic stays flat across the industry, beverage innovation offers a sweet solution - literally and figuratively - for chains looking for growth in a highly competitive market.