Introduction to Innovative Beverages
Fast-food chains have been leaning into innovative beverages in the hopes of winning over Gen Z customers. Wendy’s, Taco Bell, and Chick-fil-A are among the chains that have been working on their drink offerings by introducing fun, fruity flavors. Restaurants typically generate higher profits from beverages than from food sales.
Attracting Gen Z
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. Monin, a French company best known for its flavored syrups, tapped yuzu, an East Asian citrus fruit, as its flavor of the year for 2025.
Unique Flavor Offerings
Traditionally, large fast-food chains are less likely to experiment with such audacious flavors, but even they have stepped outside of their comfort zones. For example, Wendy’s current lemonade lineup includes blueberry pomegranate and pineapple mango — two choices that have paid off for the burger giant. "Our premium craft lemonades are also incredibly loved by our customers, and this product over-indexes with Hispanic consumers and Gen Z," Wendy’s U.S. Chief Marketing Officer Lindsay Radkoski said at a recent investor event.
Beverage Innovation
Fast-food chains are increasingly adding beverage options and widening the number of items within that segment. Refreshers and agua frescas are increasingly showing up on menus, while fast-food chains expand their specialty iced coffee, hot chocolate, and energy drink options, according to market research firm Datassential. The trend also follows the decades-long decline in soda consumption since its peak in 2000. "As the consumer moves away from the traditional soda, there’s an opportunity for operators and different brands to bring something signature to the table that is more in line with their brand in certain instances, but also an opportunity to potentially charge a little more," said Michael Parlapiano, managing director of the Culinary Edge.
Mixing Drink Trends
Restaurants have also been inspired to mix different drink trends favored by Gen Z, hoping that the unique mashups will attract adventurous consumers. For example, the soaring popularity of bubble tea, with its chewy tapioca balls, has inspired restaurant chains to add their own boba-inspired touches to drinks beyond tea. CosMc’s, the McDonald’s spinoff, offers dried blueberries and fruity popping boba as customizations for some of its drinks. Shake Shack’s tropical kiwi lemonade includes tiny pieces of kiwi inside the drink, adding a new texture and evoking the chewiness of boba pearls, Parlapiano said.
Beyond the Soda Fountain
For some chains, beverages have taken center stage as an area for improvement — and future sales growth. "We recognize that it’s not just about carbonated sodas anymore," El Pollo Loco CEO Liz Williams told CNBC. "So we did a deep dive in beverage innovation this year." El Pollo Loco’s expanded drink offerings now include more flavors of its Aguas Frescas, which are fruit-infused waters. Future drink innovation could mean following the mashup trend, such as selling horchata coffee, Williams said.
Profitable Beverage Options
In many cases, beverages generate higher profits and are easier to add to menus than a new food item. While a customer sees a new flavor, for the workers making the drinks, it’s just swapping out a syrup flavor or adding a new drizzle on top. With just a little more labor, restaurants can charge a lot more. Plus, syrups also usually have longer expiration dates than food items and are easier to store, according to Datassential’s Conaghan.
Conclusion
Fast-food chains are going all in on fun beverages to attract younger consumers. With the rise of Gen Z’s openness to new flavors and the decline of traditional soda consumption, restaurants are betting on unique and innovative drink options to drive sales and growth. As the trend continues to evolve, it will be interesting to see how fast-food chains adapt and innovate to meet the changing tastes and preferences of their customers.
FAQs
Q: What is driving the trend of fast-food chains focusing on innovative beverages?
A: The trend is driven by the desire to attract Gen Z customers, who are open to new flavors and willing to pay more for unique and high-quality beverages.
Q: What types of beverages are fast-food chains introducing to appeal to Gen Z?
A: Fast-food chains are introducing a variety of beverages, including flavored lemonades, refreshers, agua frescas, specialty iced coffee, hot chocolate, and energy drinks.
Q: How do beverages contribute to the profitability of fast-food chains?
A: Beverages generate higher profits for fast-food chains than food sales, as they are easier to add to menus and can be made with minimal labor and ingredients.
Q: What is the significance of the decline in soda consumption for fast-food chains?
A: The decline in soda consumption has created an opportunity for fast-food chains to introduce new and innovative beverages that are more in line with changing consumer preferences.
Q: How are fast-food chains using beverage innovation to drive sales and growth?
A: Fast-food chains are using beverage innovation to drive sales and growth by introducing new and unique flavors, mixing different drink trends, and expanding their beverage options to appeal to a wider range of customers.
