SPECIAL REPORT
FOODSERVICE LEADS IN BEVERAGE SHARE, GAINING GROUND OVER RETAIL Sales of beverages in restaurants are forecasted to grow into 2029, while convenience stores are seeing a decline, finds Technomic.
BY PATRICIA COBE
PHOTO: SHUTTERSTOCK
B oth adult drinks and nonalcoholic beverages are increasing on restau- rant menus, reversing a long-term decline, reported Technomic at In- forma Connect’s Future of Beverage Confer- ence. Rich Shank, senior principal and VP Inno- vation at Technomic, opened the conference with an overview of State of Beverage: Inno- vation Playground, Growth Opportunity. He sees overall beverage growth increasing by over 1% into 2029, and more of that growth is coming on restaurant menus. Adult bever- ages are up 2.8% on menus and nonalcoholic beverages, 5.1%, year over year. Shank attributes this surge to several factors, he told the audience. Operators are leveraging beverages as snacks and cus- tomization is driving growth. What’s more,
purchasing beverages as a pick-me-up has grown, motivating 22% of consumers to- wards a sale. But consumers, especially those in young- er age groups, are looking for beverage diver- sity. Gen Z and Millennials gravitate toward bubble tea, cold and frozen blended coffee, hot specialty coffees, kombucha, energy drinks and milkshakes. It’s the “challenger” brands like 7 Brew, Dutch Bros, Scooter’s Coffee and Black Rock that are driving interest in alternative bever- age formats, Shank told the audience. They all saw year-over-year growth in traffic, while legacy brands such as Caribou Coffee, Tim Horton’s and Starbucks experienced de- clines. The challengers all offer more ways to customize and enhance beverages. How can operators stay ahead of the
curve? Technomic offered predictions on “what’s next.” Consumers are looking for beverages that offer even more customization, allow- ing personalization of mix-ins, enhancers and toppings, along with an expansion of taste horizons. But Shank warned against too many options, as customers can become bogged down by the proliferation of choices. Health is a factor, too, with functional in- gredients and hydration priorities, but those same drinkers are also seeking indulgent beverages. Operators need to cater to that bifurcation and offer a balance of healthy and indulgent choices. The Future of Beverage conference was hosted by Informa Connect, parent company of Restaurant Business and Tech- nomic.
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RESTAURANT BUSINESS JANUARY 2026
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