Profitability Advantage
Refreshers and specialty drinks generate significantly higher profit margins than traditional fountain drinks and food offerings. While a small sparkling energy drink costs $3.29, a standard small drink from a Coca-Cola Freestyle machine costs $1 less. Beverages generally carry the highest profit margins on any menu, with refresher prices climbing as high as $10 and profit margins easily reaching 80%. As protein prices rise, beverage offerings become increasingly attractive to fast food operators seeking to boost profitability.
Addressing Afternoon Sales Slumps
Fast food chains have identified a significant gap in afternoon sales between mealtimes. McDonald's and other chains are targeting afternoon consumers who are cutting back on eating out but still seeking affordable indulgences. The refresher category positions itself as a "spark" and self-care moment for consumers, particularly younger women ages 16-35. McDonald's specifically made beverages one of its three core menu categories and emphasized that it expects beverages to be a place of significant growth in the profit pool.
Competition and Market Trends
Fast food chains are competing with coffee shop chains like Starbucks and Dutch Bros by upgrading their beverage offerings. Starbucks pioneered the refresher concept among chains in 2012 with drinks for non-coffee consumers, and these drinks now generate $2 billion in annual US sales. Other chains including Dunkin', Wendy's, Taco Bell, KFC, and Burger King have all launched or expanded beverage programs. Sales at beverage and snack-focused chains jumped 8.1% last year while burger chains grew only 0.2%, demonstrating the market strength of beverage-focused strategies.
Consumer Appeal and Demographics
Refreshers appeal to younger consumers seeking colorful, iced options that carry a perception of health benefits, despite often containing significant sugar. The drinks function as a form of self-expression and visual appeal, featuring bright colors, freeze-dried fruit, cold foam, and popping boba. Consumers view drinks as more than beverages but as everyday moments and treats. The word "refresher" appears on only 1% of US menus but is forecasted to grow by nearly 130% over the next four years.
Chain-Specific Strategies
McDonald's is implementing a "beverage specialist" role at its 14,000 US restaurants with dedicated counter spaces to focus on drink preparation. Dunkin' enlists high-profile stars like Sabrina Carpenter and Morgan Thee Stallion for marketing refresher products. Taco Bell created a separate brand called Live Mas Café with dedicated beverage kiosks featuring drinks prepared by "Bellristas." Swig, a Utah-based chain, allows customers to customize their own refreshers. KFC's Kwench menu performed so well in Manchester tests that it's rolling out to 3,000 stores across the U.K., Australia, and Canada. 
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