AS Americans’ preferences shift alongside the evolving economy, fast food chains like McDonald’s and Burger King are delivering, taking a step back from their traditional food offerings.
Quick service restaurants are increasingly turning to trendy beverages to lure in diners’ wallets as diners crave more and more cold, customizable drinks,
McDonald’s, the largest fast food chain in the US, is making waves in the beverage space, rolling out a handful of new drinks soon[/caption]
Burger King, among other fast food giants, is likewise launching a series of new beverages to appeal to consumers[/caption]
The U.S. Sun spoke exclusively with retail expert Dominick Miserandino about why fast food giants are investing so heavily in the beverage sector[/caption]
There are two key reasons behind the shake up, according to a retail expert.
As the summer heat hits across the country, McDonald’s, Burger King, and other iconic fast food chains are cooling things down with an array of sweet sips hitting their menus.
McDonald’s, for example, permanently added homemade lemonade to its menus in April, and more recently announced it would begin testing a premium lineup of new drinks at select locations starting on September 2.
Fans will be able to get their hands on a variety of coffees, frappes, refreshers, and dirty sodas, which feature add-ins like dried fruit and flavored syrups.
Burger King is likewise making waves in the beverage space, launching its Frozen Strawberry Flavored & Nerds drink, Frozen Cotton Candy Cloud, and more recently, four new Iced Coffee Cold Foam beverages and two Real Juice Lemonades.
Meanwhile, Taco Bell debuted its Agua Refrescas in June along with Rockstar Energy Refrescas and the Refresca Freeze.
Elsewhere in the fast food landscape, Chick-fil-A introduced a number of new drinks this year, including the Icedream Spin and Icedream Float, Peach Frosted Lemonade, and the Pineapple Dragonfruit drink lineup.
Wendy’s is also making moves in the beverage space, launching its new Tangerine Twist Lemonade as well as the Frosty Swirls in April, debuting the Frosty Fusions in May, adding three all-new, exclusive Powerade flavors to its Freestyle fountain in June, and launching its “Raven’s Blood” Frosty in August.
The spike in competition over beverage offerings in the fast food industry is not a coincidence, according to retail expert Dominick Miserandino, CEO of Retail Tech Media Nexus.
He spoke exclusively with The U.S. Sun on why quick service restaurants are working so hard to expand their drink menus, nailing it down to two key reasons.
CALLING THE SHOTS
Shifting customer preferences have played a major role in the fast food industry’s newfound focus on beverages, with inflation hitting consumers hard, especially over the past two years.
As a result, many Americans have opted to eat at home and cook rather than dine out – a trend that has compounded restaurants’ struggles in the wake of the pandemic-era shutdown.
With diners feeling the pinch of inflation and economic uncertainty, fast food chains have found what may be their saving grace in Gen Z, according to Miserandino.
This younger cohort is significantly affecting and driving new trends in the beverage industry, led by their “treat yourself” mentality.
Over 75% of Gen Z report ordering food and drink items as a reward after a difficult day, with innovative and indulgent beverages fitting well within this trend, offering an affordable luxury.
Fast Food: New Sips
Several fast food giants have hopped on the beverage trend, offering up new and unique beverages.
McDonald’s:
- Creamy Vanilla Cold Brew
- Strawberry Watermelon Refresher
- Toasted Vanilla Frappe
- Sprite Lunar Splash
- Popping Tropic Refresher
- Homemade lemonade
Burger King:
- Vanilla Cold Foam
- Mocha Cold Foam
- Plain Cold Foam
- Black Cold Foam
- Strawberry Lemonade
- Mango Peach Lemonade
- Frozen Strawberry Flavored & Nerds drink
- Frozen Cotton Candy Cloud
Taco Bell:
- Strawberry Passionfruit Agua Refresca
- Dragonfruit Berry Agua Refresca
- Mango Peach Agua Refresca
- Tropical Punch Rockstar Energy Refresca
- Pineapple Lime Rockstar Energy Refresca
- Strawberry Lime Refresca Freeze
Chick-fil-A:
- Icedream Spin
- Icedream Float
- Peach Frosted Lemonade
- Pineapple Dragonfruit Lemonade
- Pineapple Dragonfruit Iced Tea
- Pineapple Dragonfruit Frosted Lemonade
- Pineapple Dragonfruit Sunjoy
Wendy’s:
- Tangerine Twist Lemonade
- Frosty Swirls
- Frosty Fusions
- Powerade Xtra Sour Cherry Kicker
- Powerade Xtra Sour Grape Shocker
- Powerade Xtra Sour Peach Pucker
- “Raven’s Blood” Frosty
As young Americans search for flavorful, caffeinated, sweet, and visually appealing beverages, fast food chains are taking note and rolling out what the people are craving.
“Drinks are the new drive-thru stars. They’re colorful, Instagrammable, and built for Gen Z,” said the retail expert.
“A burger fills you up, but a glittery lemonade fills your feed. It’s less about thirst, more about attention.”
McDonald’s has even admitted that consumers in their teens to late twenties were the inspiration behind its new slew of social media-worthy 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,” said Alyssa Buetikofer, chief customer experience and marketing officer of McDonald’s USA, in a statement.
LIQUID GOLD
Slowed traffic is a direct response to shifting diner preferences, with fast food chains experiencing weaker sales due to economic uncertainty and subsequent consumer concerns.
Drinks are the new drive-thru stars. They’re colorful, Instagrammable, and built for Gen Z. A burger fills you up, but a glittery lemonade fills your feed. It’s less about thirst, more about attention.”
Dominick Miserandino
For example, McDonald’s same-store sales in the US dropped 3.6% in the first quarter of the year, while Burger King’s were down 1.1%, and Wendy’s sales decreased by 2.8%.
As Americans become increasingly cautious with their discretionary spending on dining out, beverages have become a powerful growth tool for quick service restaurants in recent years.
Fast food chains are betting on the new drinks offsetting their sales slumps as consumers, especially as younger demographics cut back on more expensive meal purchases but remain willing to spend on smaller items like unique drinks.
Along with luring in younger diners, beverages also tend to rake in higher profits for businesses and will “absolutely boost sales if the flavor and branding land right,” according to Miserandino.
He explained that not only was the hype around beverages trendy, but also financially savvy.
“Drinks are cool and hip now, but they’re also pure margin,” said the expert. “We’re talking 60% to 70% profit on a beverage versus a burger that’s heavy on cost.”
Not only are beverages profitable, but they also “scale easily, travel well, and scream ‘limited edition,’” according to Miserandino.
Drinks are cool and hip now but they’re also pure margin. We’re talking 60% to 70% profit on a beverage versus a burger that’s heavy on cost. This shift isn’t just trendy – it’s financially savvy.”
Dominick Miserandino
Beverages have some of the highest profit margins in the restaurant industry, with some estimates even exceeding 80% to 90%.
This is much higher than the margin on most food items, which have more complex supply chains and preparation costs.
Starbucks and Dunkin’ have been raking in the dough with their beverage-based businesses, and quick service restaurants are only now catching on as economic hardship forces them to shift gears.
“Fast food is realizing they’ve been sitting on an untapped goldmine in that plastic cup with a dome lid,” said Miserandino.
BOTTOMS UP
Gen Z’s craving for a little sweet treat and the high profit margins boasted by the beverage industry have led more and more fast food chains to hop on the trend and invest heavily in the drink market, which has been on fire recently.
Americans on average purchase 4.4 beverages each week from foodservice establishments, per Technomic’s Away-from-Home Beverage report last year – up from 3.7 drinks per week in 2022.
Many of those drink purchases are made at fast food chains, with the sales of cold drinks alone spiking 8.3% from 2022 to 2023, according to the report.
Fast food is realizing they’ve been sitting on an untapped goldmine in that plastic cup with a dome lid.”
Dominick Miserandino
Iced beverage sales then increased 9.6% year-over-year in 2024, surpassing the growth of traditional fast food offerings such as burgers, per a recent Business Insider analysis.
Fast food giants are counting on the beverage industry to grow even more.
For example, Taco Bell is expecting to reach $5 billion in beverage sales by 2030, and McDonald’s is targeting what it has identified as a $100 billion global beverage market.
Diners can look forward to even more innovation in the drinks space, with Miserandino predicting the debut of personalized bundles, pop-culture collabs, and maybe even AI-curated orders.
“Think: your Spotify playlist meets your lunch,” he said.
Fast foodies may even see more eco-friendly packaging and seasonal experiences with the sips.
“It’s not just fast food anymore – it’s fast identity,” said the retail expert.
Aside from restaurants’ move to break further into the beverage industry, a number of other changes are underway in the dining sector.
For example, Chipotle added another “equipment” change to 60 restaurants after its robot used to make guac in only 26 seconds was removed.
Plus, Red Robin took a swipe at McDonald’s with its new cheeseburger combo – and it’s $5 cheaper than the fast food giant.
Burger King previously debuted its Frozen Cotton Candy Cloud beverage[/caption]
Chick-fil-A is delving into the beverage industry, previously launching a Pineapple Dragonfruit lineup[/caption]
McDonald’s is testing a new drink lineup at select restaurants, inspired by its closed CosMc’s concept[/caption]
Burger King is launching six new drinks this summer, including the Mango Peach Lemonade[/caption]
