Fast-food chains are increasingly embracing innovative beverage options to attract younger consumers, particularly Gen Z. Leading the charge, Chick-fil-A has introduced seasonal Pineapple Dragonfruit drinks, stepping beyond its traditional menu of fried chicken and waffle fries. Similarly, Yum Brands' Taco Bell has launched a unique beverage concept called Live Mas Café at one of its California locations, while McDonald's continues to test its drinks-centric spinoff, CosMc's. These chains are betting that drinks featuring exotic flavors, vibrant colors, and high caffeine and sugar content will drive sales and improve profit margins.
Recent market research from Datassential indicates that fast-food chains are broadening their beverage selections, adding items like refreshers and agua frescas to their menus. Specialty iced coffees, hot chocolates, and energy drinks are also becoming more prevalent. This trend aligns with a larger movement within the restaurant industry, as the number of beverage-focused concepts continues to rise. Regional coffee shops are increasingly positioning themselves as competitors against industry giants like Starbucks. Additionally, consumers are now seeking drinks beyond traditional coffee, with options such as bubble tea and 'dirty soda'—a Utah trend involving syrups, creamers, and juices mixed with soda—gaining nationwide popularity.
According to restaurant market research firm Technomic, beverage chains such as Swig, 7 Brew Drive Thru Coffee, and Gong Cha are among the fastest-growing quick-service restaurant chains by sales. This surge in interest follows a long-term decline in soda consumption since its peak in 2000. As consumers move away from traditional sodas, brands see an opportunity to introduce signature beverages that can command higher prices. Michael Parlapiano, managing director of the Culinary Edge, explains that this shift allows operators to create offerings that resonate more with their brand identity while also potentially increasing profit margins.
Fast-food chains are strategically targeting Gen Z consumers, who are known for their adventurous palates and diverse backgrounds. With this demographic being more open to trying new flavors, chains are experimenting with unconventional options like butterfly pea and ube. Monin, a well-known French syrup company, has even named yuzu, an East Asian citrus fruit, as its flavor of the year for 2025. Even traditional fast-food giants are beginning to explore these bold flavors, as evidenced by Wendy's introduction of blueberry pomegranate and pineapple mango lemonades, which have proven popular among customers.
To attract adventurous consumers, restaurants are inspired by the popularity of bubble tea, leading them to incorporate boba-inspired elements into their drinks. For instance, McDonald's CosMc's offers fruity popping boba and dried blueberries as customizable drink options. Meanwhile, Shake Shack's tropical kiwi lemonade features tiny pieces of kiwi, adding an intriguing texture reminiscent of boba pearls. Although these innovative drinks often contain just as much sugar as traditional sodas, Gen Z remains enthusiastic about indulging in these sweet treats. Claire Conaghan, a trendologist at Datassential, notes that younger consumers are aware of the sugar content but are willing to splurge for a delightful drink experience.
For many fast-food chains, beverages are becoming a critical area for improvement and growth. El Pollo Loco’s CEO Liz Williams emphasizes that the focus is shifting away from carbonated sodas. The chain has expanded its drink offerings to include a wider variety of Aguas Frescas, which are fruit-infused waters. Future innovations may even include trendy mashups like horchata coffee. Wendy's is also keen to increase beverage sales, as approximately 30% of its customers currently do not order drinks with their meals. Wendy’s U.S. President Abigail Pringle sees this as a significant growth opportunity, given that beverages often yield higher profits and are easier to introduce than new food items.
Taco Bell is also focusing on the potential of beverages during its recent investor presentations. The brand envisions beverages becoming a core craving, with plans to build a $5 billion beverage business by 2030. Taco Bell's new Live Mas Café concept, featuring over 30 drink options, is already yielding double-digit sales growth. Highlights of the menu include caffeinated refrescas infused with green tea and Rockstar energy drinks, as well as unique offerings like Churro Chillers and the Dirty Baja, which combines cream with the signature Baja Blast Mountain Dew. Taco Bell aims to leverage insights gained from the Live Mas Café to scale its beverage offerings across all U.S. locations, with plans to introduce the Dragonfruit Refresca in the near future.
