Dive Brief:
- McDonald’s will test a new beverage lineup, beginning Sept. 2, at 500 stores in Wisconsin, Colorado and surrounding markets, according to a Thursday announcement.
- The Golden Arches framed the test as a way to determine what sorts of premium beverages — developed with lessons learned from CosMc’s fleeting tenure as a spinoff brand — are worth scaling in the U.S.
- The beverage lineup will feature options across the beverage spectrum, from soda-based drinks and specialized cold brews to frappes and refreshers, the brand said. McDonald’s did not share precisely how many beverages would be tested.
Dive Insight:
McDonald’s said the drinks blend CosMc’s creativity with McDonald’s focus on convenience. The chain is looking for feedback from operators and frontline workers on the performance and operational challenges associated with the new beverages.
“Their experience will help us fine-tune everything — from equipment to execution — so McDonald’s fans around the world get the best possible beverage experience,” the brand said in the announcement.
McDonald’s plans reflect Gen Z’s broadly observed preference for sweet, caffeinated and visually stimulating beverages.
“We’re seeing real momentum in beverages, with more people — especially our Gen Z fans — turning to cold, flavorful drinks as a go-to treat,” said Chief Customer Experience and Marketing Officer Alyssa Buetikofer.
Those premium drinks preferences are reshaping the coffee market and creating new restaurant dayparts, meaning national brands that fail to adopt a forward-looking beverage strategy are at risk of falling behind.
This summer has seen some emergent beverage categories flood QSR menus: Taco Bell, Whataburger, Taco Cabana and Caribou Coffee are all in the process of adding new refreshers options. McDonald’s beverage test includes at least two refreshers, the Strawberry Watermelon Refresher and the Popping Tropic Refresher.
With traffic at many brands stagnant — the Golden Arches posted negative comps sales in three of the last four quarters — menu innovation is an important priority at McDonald’s. The implosion of its partnership with Krispy Kreme may make menu additions and LTOs more important, as it looks to make up for lost incremental doughnut sales.
The company announced earlier this year that it was creating three new teams focused on menu innovation in chicken, beef and beverages and desserts. Since then, McDonald’s has added Crispy Chicken Strips to its core menu, tacked the Daily Double onto the upper end of its value menu, and used the return of Snack Wraps to juice its traffic.
