10.10.11
Michael Szyliowicz

For years fizzy drink sales were the rule—not the exception—when eating out.

QSRs and fast food operators relied on sodas for both easy sales and high profits. Lately, though, that trend is changing. Fewer fizzy drinks are being sold, and there is a simultaneous rise in specialty coffee and tea beverages.

Just check out this recent study by The NPD Group, which examines how soft drink sales have diminished drastically over the years. The chart on the right side of this post shows how iced tea and specialty coffee have really surged in the past year. 

One astute operator I spoke to has showcased different flavors of iced tea next to the soda dispenser and watched sales increase fivefold. Other players are featuring higher ticket and higher margin coffee drinks to accompany their hamburgers and salads. Drive-thrus are no longer the sole province of soda pop. Like drinks that are left out too long, carbonated beverage sales are flat. Consumers have been trained to expect more variety, and successful operators are those introducing the unusual, interesting, and differentiated drinks. Unusual teas. Iced coffees. Flavored lemonades. Energy drinks.

That just scratches the surface, and I’m looking forward to seeing what bubbles up next…

03.21.11
Michael Szyliowicz

For the sixth straight year, soft drink sales are down. For some operators, these figures create bottom-line margin pressure because of the inherent profitability of fountain drinks.

Savvy operators, however, are diversifying their beverage offerings to feature an array of new drinks. What’s replacing the ubiquitous soft drink? Coffee brewed hot and served cold, cappuccinos, lattes, mochas, teas served hot and cold, flavored and iced, lemonades, fruit smoothies, and chocolate drinks featured both hot and frozen – to name just a few. Accompanied with higher price points and equally strong profit margins, specialty beverages offer café and QSR operators a strategy to offset the decline in soda sales.

As consumer tastes change, adapting and innovating with new beverages is key to maintaining a successful operation.

Beverages, Innovation