The trend: While rising cost-consciousness is causing consumers to think twice before indulging in a burrito, they’re still saying yes to a splurge-worthy drink. Beverages have emerged as one of the hottest growth categories in US foodservice, offering quick-service restaurants (QSRs) a high-margin way to boost traffic and ticket sizes amid inflation fatigue.

Sales at beverage- and snack-focused chains surged 9.6% in 2024—the largest annual growth of any restaurant category, according to Technomic data cited by The Wall Street Journal. For comparison, burger chains—despite generating more total sales—grew just 1.4% over the same period.

The examples: The surge in demand for vibrant, indulgent beverages that feature bold flavors, eye-catching colors, and generous helpings of sugar and caffeine is pushing nearly every major QSR to pour resources into drinks as a traffic and margin driver, especially among Gen Z consumers.

• McDonald’s is testing a wide lineup of specialty drinks this summer at more than 500 restaurants across Wisconsin, Colorado, and surrounding states. The menu, inspired by its now-shuttered CosMc’s spinoff, features items like Creamy Vanilla Cold Brew, Strawberry Watermelon Refresher, Sprite Lunar Splash, and Popping Tropic Refresher.
• Yum Brands is leaning hard into innovation. Its Quench by KFC concept—live in 38 UK restaurants—offers 10 beverages in four categories: lemonades, refreshers, shakes, and iced coffees. Strong results, including increases in both traffic and drink sales, prompted Yum to expand the pilot to Australia, where it quickly exceeded expectations and drove incremental visits.
• Meanwhile, Yum-owned Taco Bell is building momentum with beverages. It recently launched fruity Refresca drinks and plans to expand its beverage-forward concept, Live Más Café, to more than 30 locations later this year. The pilot location of the café—which features chillers, aguas frescas, and specialty coffees—delivered a 40% sales lift, with guests purchasing over 300 specialty beverages per day on average, CEO David Gibbs said on the company’s April earnings call.
• Restaurant Brands International-owned Burger King is also turning into beverages to drive buzz and foot traffic. On July 5, the chain reintroduced its Frozen Cotton Candy Cloud drink nationwide after a limited run last spring. Weeks later, Burger King expanded its drink lineup with iced coffee topped with cold foam, along with strawberry lemonade and mango peach lemonade, signaling a broader strategy to tap into the specialty beverage trend.

Our take: The beverage boom is fueled by novelty, shifting habits, and the hunt for higher margins.

• Consumers are stressed. Amid economic uncertainty, nearly half (44%) of consumers turn to comfort or junk food to cope—and specialty drinks offer a relatively affordable way to indulge without breaking the bank.
• They crave novelty. Limited-time drinks with bold flavors, bright colors, and TikTok appeal are strong traffic drivers, especially among Gen Z, who are eager to try what’s new while it lasts.
• Younger consumers are drinking less alcohol. As Gen Z and millennials cut back on alcohol, drinks like iced coffees, chillers, and fruity refreshers are filling the social gap with fun, flavorful alternatives.
• Chains are chasing margins. Beverages typically carry higher profit margins than food and are often (but not always) operationally easier to tweak. Adding a new syrup or topping is simpler than introducing a new entrée, making drinks an efficient way to drive both sales and excitement.