QSRs are gaining ground in dispensed beverages
QSRs drive innovation in dispensed beverages as consumer preferences shift.
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QSR brands like McDonald's and Whataburger are expanding their beverage offerings, focusing on unique and customizable drinks. The trend reflects a broader consumer preference for beverages as affordable indulgences. With a reported 267% growth in refreshers on QSR menus, these innovations are integral to QSR unit economics.
Why It Matters
This trend highlights the shift in consumer preferences that may influence unit economics for franchisees, suggesting a potential new revenue stream as beverage categories become focal points in QSR strategies.
Quick Service Restaurants (QSRs) like McDonald’s, Whataburger, Sonic, and Chick-fil-A are increasingly focusing on innovative dispensed beverages as they evolve to capture consumer interest. Recent menu additions at these chains include a line of refreshers and craft sodas, with McDonald's introducing unique flavors like Dirty Dr. Pepper and Mango Pineapple. This trend reflects a broader consumer shift toward viewing beverages as affordable indulgences during challenging economic times, driving QSRs to enhance their beverage offerings into a primary destination category. Suzy Badaracco, president of Culinary Tides, emphasizes that "What QSRs are doing well right now is treating beverages as a destination category instead of a side item."
Data from Datassential corroborates this shift, noting that refreshers have surged by 267% on QSR menus in the past ten years, with 54% of operators reporting increased sales due to these offerings. Popular non-alcoholic beverages now include cold foam, cherry limeade, and ginger beer.
While QSRs are making strides in this sector, convenience stores (c-stores) such as 7-Eleven, QuickChek, and Wawa remain the long-standing leaders in dispensed beverages. 7-Eleven's Slurpee and Big Gulp have been staples, with the company consistently introducing limited-time flavor partnerships to maintain consumer interest, such as recent offerings inspired by nostalgic candy brands. QuickChek is diversifying its lineup to include café-style beverages, while Wawa has developed proprietary drink platforms.
The competition between QSRs and c-stores illustrates a shift in consumer preferences and the critical role beverages play in influencing brand loyalty and sales. As QSRs continue to innovate in this space, franchise owners and operators should closely monitor these trends to adjust their offerings and marketing strategies accordingly. The ability for brands to maintain engagement with these beverage-centric initiatives may highly affect their performance in the upcoming quarters.
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