The drink menu is having a moment
High margins drive restaurants to concoct weird drinks. The soda at McDonald's is divine.
On Saturday, May 16, Smoothie King will hand out free 4-ounce pickle smoothies, a promotion that sounds like it was created by middle-schoolers. But the Louisiana-born chain is not just daring you with a briny drink. It is part of a larger race across the restaurant industry: drinks are the new battleground.
Why it matters: Burgers and tacos still matter. But drinks are where restaurants make big money, with margins that would make an Nvidia executive jealous. They also give customers a reason to stop by when they are not actually hungry.
On the menu:
- Smoothie King: The Grillo Pickle Smoothie, made with pickles, banana, kale and coconut water.
- Taco Bell: Churro Chillers, frozen creamy drinks layered with churro crunch.
- Sonic: Strawberry Horchata Cream Slush, with cinnamon-spiced horchata syrup and real strawberries.
- McDonald’s: A new beverage lineup with refreshers and “dirty sodas” with foam.
The big picture: This is not random weirdness. It‘s restaurant math. Margins on beverages can top 80%, according to the National Restaurant Association. A fountain drink that costs pennies to pour can sell for $3.50.
Who’s buying: Gen Z is driving much of the trend. Younger consumers are heavy buyers of iced, flavored and specialty drinks, which helps explain the rise of Dutch Bros—including its new Baton Rouge shop on South Lee Drive, where customers can concoct their own drinks.
How it spreads: Social media does the rest. A limited-time drink photographs well, gets passed around online, drives traffic and teaches customers to come back for the next oddity.
Yes, but: This is not just a Gen Z play. Chains are chasing the same margins with drinks aimed at all ages: electrolyte waters, protein beverages, flavored coffees, teas with supplements and anything else that can be made to sound like wellness in a plastic cup.
RedEye note: Drink devotees will tell you McDonald’s has the best version of sodas anywhere. They may be right. The chain uses a serious filtration system and keeps the syrups refrigerated. And fatter straws move soda faster from cup to mouth.
The bottom line: Restaurants are engineering your beverage order, and they are very good at it. A drink is now self-expression, social media bait and a profit center in one cup.
