Fast food chains, thirsty for new ways to grow, are amping up their beverage offerings.
McDonald’s said Tuesday it will launch six crafted beverages in U.S. restaurants on May 6. It’s joining other chains, like KFC, Wendy’s and Taco Bell, that have elevated their drinks in order to lure customers away from rivals like Starbucks and Dutch Bros.
McDonald’s will offer three refreshers, including a mango pineapple flavor with strawberry boba and a blackberry passion fruit flavor with freeze-dried dragon fruit. It will also offer three crafted sodas, including a dirty Dr Pepper with vanilla flavoring and a topping of cold foam.
McDonald’s said visual appeal — think bright colors and foams — and drinks as a form of self-expression are increasingly important to customers.
“Our fans have an obsession with beverages – to them, drinks are more than just drinks. And soon, our beverages won’t just be a reason you come to McDonald’s, they’ll be THE reason,” Alyssa Buetikofer, the chief marketing officer for McDonald’s USA, said in a statement.
The drinks are also more profitable for fast food chains than the standard soda fountain drinks or plain coffees. A small Pineapple Citrus Sparkling Energy drink cost $3.29 on Tuesday at a Michigan Wendy’s, while a small drink from the restaurant’s Coca-Cola Freestyle machine cost $1 less.
McDonald’s said it’s also adding a “beverage specialist” role at its 14,000 U.S. restaurants. Those employees will have dedicated spaces behind the counter where they can focus on drinks. Initially, high-performing employees will be selected for those roles, but eventually all employees will be encouraged to rotate through the beverage positions.
McDonald’s has been working on a beverage upgrade for years. In late 2023, the company announced it would open small stores called CosMc’s which would sell customizable drinks and treats to appeal to afternoon snackers. McDonald’s said its sales often slump in the afternoon between mealtimes, and it wants to change that.
“This is a $100 billion category that’s growing faster than the rest of (casual dining) and with superior margins. And it’s a space that we believe we have the right to win,” McDonald’s Chairman and CEO Chris Kempczinski said at the time.
McDonald’s got creative with the CosMc’s menu, which included a turmeric spiced latte and a prickly pear slushie with popping candy on top. But it wound up closing its eight CosMc’s locations last spring. Kempczinski said many of the drinks were too complex for regular McDonald’s store operations, but he said the company would test some drinks at U.S. stores in the future.
Other chains are also jumping on the beverage bandwagon. KFC’s Kwench drink menu did so well in tests in Manchester, England, last year that it’s rolling out to 3,000 stores this year in the U.K., Australia and Canada. The menu includes shakes, like a Strawberry Shortcake Krunch, as well as boba refreshers and iced coffees.
Taco Bell, which is also owned by KFC parent Yum Brands, has a separate beverage brand called Live Mas Café. At kiosks within U.S. Taco Bell stores, employees dubbed Bellristas blend drinks like Churro Chillers milkshakes, iced coffees and fizzy energy drinks. Taco Bell opened its first Live Mas Café at the end of 2024 and added 30 more locations last year.
In a November conference call with investors, Yum Brands CEO Chris Turner said that if sales perform well at those 30 locations, the Live Mas Café concept will likely be part of Taco Bell’s long-term growth plan.
“Through Live Mas Café, (we) add a new consumer use case, which is the destination beverage visit,” he said.
Wendy’s added customizable cold foam iced coffees and two sparkling energy drinks to its U.S. menu last fall. Burger King has also upgraded its beverage options, starting with a Frozen Cotton Candy drink with an optional foam topping that debuted in 2024 and returned last summer.
