Drink wars heat up as fast-food chains bet big on beverages
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Fast-food giants and coffee chains are racing to reinvent their drink menus — betting beverages can drive visits all on their own.
Why it matters: Drinks are becoming one of the most profitable and fastest-growing parts of the restaurant business, as consumers look for small, affordable treats.
The latest: Over the last few days, major chains have rolled out drink-heavy strategies:
- McDonald's announced Tuesday it will launch six specialty drinks starting May 6, including refreshers with boba and crafted sodas like the Sprite Berry Blast — a lineup designed for "every mood and moment."
- Dunkin' debuted new refreshers, a "dirty soda" and frozen coffee drinks Wednesday, designed for "playful" customization.
- Wendy's launched a lineup of watermelon drinks Monday, including a lemonade, sparkling energy beverage and a Sprite-based option.
- Competitors like Taco Bell and KFC — along with fast-growing beverage chains like Dutch Bros. and 7 Brew — have expanded into energy drinks, shakes, boba-style and lemonade-based beverages.
What they're saying: "Our beverages won't just be a reason you come to McDonald's — they'll be the reason," Alyssa Buetikofer, the company's U.S. chief marketing officer, said in a statement.
Between the lines: This is a strategy shift, not a seasonal tweak.
- Rising food costs — including beef prices — are squeezing margins on core menu items, making drinks a more attractive growth play.
- The higher margins on drinks can be discounted to drive traffic, retail analyst Bruce Winder told Axios. They are also used to bring in customers who may then buy food, he added.
Zoom out: The U.S. beverage market is a roughly $100 billion category growing faster than the rest of dining.
- Consumers — especially Gen Z — increasingly treat drinks as a form of self-expression, with bright colors, cold foam and boba doubling as social media content.
- Upstart brands like Poppi are expanding into restaurants and coffee chains — including Starbucks and Subway — betting growth comes from embedding into daily routines, not just retail shelves.
Case in point: The customer reaction can be seen at Starbucks. CEO Brian Niccol Tuesday said the coffee giant's menu innovation is "moving at the speed of culture" as it rolls out new refreshers and customizable energy drinks.
- That broader push is paying off: U.S. comparable sales rose 7.1% in the company's latest quarter as customer visits increased.
The intrigue: Customization and functionality are common themes in the drink push.
- Dunkin' says customers can tailor drinks by adjusting bases and sweeteners, while McDonald's says refreshers can be made lighter by swapping lemonade for water.
- Protein is emerging as a bigger focus, with Starbucks, Dunkin' and Dutch Bros. offering protein options in drinks to appeal to more health-conscious consumers.
The bottom line: The next fast-food war may not be about burgers or sandwiches — but about who wins the drink run.
Editor's note: This story was updated with additional details throughout.
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