Business
From sweet treats to protein boosts, chains are banking on beverages to drive sales
If it feels like there are a lot of new drinks on restaurant menus, it’s because there are.
Driven by younger consumers who crave customized, cold beverages, chains from Dunkin’ to Dutch Bros, Starbucks and McDonald’s are answering the call.
The number of beverages offered by the top 500 chains has increased by more than 9% in the last year, according to Technomic’s 2025 Away-From-Home Beverage Navigator Report. Companies have leaned even more into cold drinks. Offerings like specialty coffees and energy drinks have seen the most growth on menus over the past two years, as hot coffee and tea beverages on menus decline, the market researcher reported in July.
What’s more, consumers are increasingly heading to a chain simply to get an iced coffee or soda. Last year, the primary driver for beverage sales was “getting a pick-me-up,” as 22% said that was their most common reason for going, up from 20% in 2023, the data found. Meanwhile, 20% said they bought a beverage to “wash down food.” The two occasions for a purchase switched places from the previous year.
“This shift suggests that consumers may be moving toward more beverage-specific occasions, where beverages are the main driver of the foodservice purchase rather than an add-on to go alongside food. This aligns with the influx of beverage-forward concepts in recent years,” the report said.
An employee delivers a drink to a customer outside a Dutch Bros. Coffee location in Beaverton, Oregon, U.S.
Maranie Staab | Bloomberg | Getty Images
Higher drink sales are key for major players as they seek to reverse slumps in a tough consumer environment. McDonald’s U.S. restaurants saw same-store sales growth of 2.5% in its second fiscal quarter, reversing two straight quarters of domestic declines as it leaned into buzzy partnerships and value offerings. But executives cautioned low-income consumers remain challenged. While Starbucks also saw better than expected U.S. sales, they still fell 2% from the prior-year period.
Trying to capitalize on the desire for buzzy new drinks will bring its own challenges. Technomic forecasts beverage volume will grow 1% through 2029, but the group said it will likely revise that outlook lower. Customers are also more price sensitive, with 61% of consumers who said they noticed price hikes saying they order beverages less often.
What Gen Z wants
The success of many new beverage lines will hinge on Gen Z consumers, who have flocked to customized and sugary drinks.
Dunkin’ saw its colorful and sweet Refreshers platform hit new record highs in the most recent quarter, with unit sales up more than 30% year-on-year. It will release its fall menu later this week and lean further into what Gen Z consumers are seeking.
The rollout will feature an expansion of pop star Sabrina Carpenter’s Daydream Refresher lineup into Mango and Mixed Berry, along with a Cereal N’ Milk Latte, featuring a blend of espresso and real cereal milk that delivers a “nostalgic marshmallow cereal flavor.”
The curation of drinks is key for customers — and Gen Z consumers in particular, Dunkin’ Chief Marketing Officer Jill Nelson told CNBC. It has to feel unique and special in this environment.
“On the product side, it’s overwhelmingly about cold beverages, customization and bold flavor,” Nelson said.
“And then on the promotion side … when we think about Gen Z, this is a generation that grew up on sneaker drops and stories that disappear in 24 hours. So it’s all about how do you create new news and interesting flavor combinations that you can’t really recreate easily at home and feel like you’re in the know when you go to the drive through and order them,” she said, adding that the company prioritizes speed and accuracy as customers ask for more customization.
The competition will heat up next month as McDonald’s enters the beverage category in a more meaningful way. On Sept. 2, McDonald’s will launch an expanded market test in 500 restaurants across Wisconsin and Colorado of new drinks that include a “Creamy Vanilla Cold Brew” and “Toasted Vanilla Frappe.”
A worker hands a drink to a customer at a McDonald’s restaurant in Martinez, California, US, on Tuesday, Feb. 4, 2025.
David Paul Morris | Bloomberg | Getty Images
In addition, the fast food giant will roll out “dirty sodas” and Strawberry Watermelon Refreshers, aimed at Gen Z consumers. McDonald’s created the lineup with learnings from its now-shuttered CosMc’s concept, which leaned heavily into customized drinks.
“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 McDonald’s USA Chief Customer Experience and Marketing Officer Alyssa Buetikofer in a release.
On McDonald’s most recent earnings call, CEO Chris Kempczinski said beverages present a “big opportunity” for the brand.
“It’s growing and it’s more profitable than food. So, there’s a lot of things to like, which is why us as well as, I think, a few of our competitors are also excited about this,” Kempczinski told analysts. He added that while there are value offerings in the beverage space, you can get a lot of “full margin products” that franchisees would not have to discount.
The protein play
The new beverage options go beyond the sweet and bold. Chains also aim to win consumers by tapping into health trends.
An iced vanilla protein latte from Starbucks.
Courtesy: Starbucks
As Starbucks continues its “Back to Starbucks” turnaround plans under CEO Brian Niccol, it is making more changes to the menu, including a late fourth-quarter launch of protein cold foam. On the company’s recent earnings call with analysts, Niccol said the item “taps into what has become one of our most popular modifiers, cold foam, which grew 23% year over year.”
“Protein Cold Foam with no added sugar is an easy way to add 15 grams of protein to virtually any cold beverage. And customers can also add the flavor of their choice,” he said.
The coffee giant said it’s seeing increases in satisfaction among younger consumers. Niccol told analysts customer value perceptions were near two-year highs in its most recent quarter, driven by gains among Gen Z and millennials, who make up over half of its customer base.
It’s betting that innovation, coupled with better customer service under its new “Green Apron Service” strategy, will help to boost business.
Coffee chain Dutch Bros has leaned into some of those beverage trends to drive strong growth. The chain has been a standout stock performer — up over 22% year-to-date — and saw its same-store sales increase more than 6% in the most recent quarter.
CEO Christine Barone said protein milk that launched in 2024 has boosted business. But more broadly, unique and surprising toppings and offerings are a way to engage in a tough competitive landscape, she added.
“I think the key with innovation is to really understand when something might be ready to pop, or something might be of high interest, and then be able to move really fast to execute on it well,” Barone told CNBC.
— CNBC’s Drew Troast contributed to this report
UK investment bank Peel Hunt has given some support to under-pressure Chancellor Rachel Reeves over last week’s Budget as it said efforts to boost the London market and invest in UK companies were “positive steps”.
Peel Hunt welcomed moves announced in the Budget, such as the stamp duty exemption for shares bought in newly listed firms on the London market and changes to Isa investing.
It comes as Ms Reeves has been forced to defend herself against claims she misled voters by talking up the scale of the fiscal challenge in the run-up to last week’s Budget, in which she announced £26 billion worth of tax rises.
Peel Hunt said: “Following a prolonged period of pre-Budget speculation, businesses and investors now have greater clarity from which they can start to plan.
“The key measures were generally well received by markets, particularly the creation of additional headroom against the Chancellor’s fiscal rules.
“Initiatives such as a stamp duty holiday on initial public offerings (IPOs) and adjustments to the Isa framework are intended to support UK capital markets and encourage investment in British companies.
“These developments, alongside the Entrepreneurship in the UK paper published simultaneously, represent positive steps toward enhancing the UK’s attractiveness for growth businesses and long-term investors.”
Ms Reeves last week announced a three-year stamp duty holiday on shares bought in new UK flotations as part of a raft of measures to boost investment in UK shares.
She also unveiled a change to the individual savings account (Isa) limit that lowers the cash element to £12,000 with the remaining £8,000 now redirected into stocks and shares.
But the Chancellor also revealed an unexpected increase in dividend tax, rising by 2% for basic and higher rate taxpayers next year, which experts have warned “undermines the drive to increase investing in Britain”.
Peel Hunt said the London IPO market had begun to revive in the autumn, although listings activity remained low during its first half to the end of September.
Firms that have listed in London over recent months include The Beauty Tech Group, small business lender Shawbrook and tinned tuna firm Princes.
Peel Hunt added that deal activity had “continued at pace” throughout its first half, with 60 transactions announced across the market during that time and 10 active bids for FTSE 350 companies, as at the end of September.
Half-year results for Peel Hunt showed pre-tax profits jumped to £11.5 million in the six months to September 30, up from £1.2 million a year earlier, as revenues lifted 38.3%.
Peel Hunt said its workforce has been cut by nearly 10% since the end of March under an ongoing savings drive, with full-year underlying fixed costs down by around £5 million.
Steven Fine, chief executive of Peel Hunt, said: “The second half has started strongly, with the group continuing to play leading roles across both mergers and acquisitions and equity capital markets mandates.”
Business
Gross GST collections for November stand at over Rs 1.70 lakh crore; up 0.7 per cent – The Times of India
GST collections: The Gross Goods and Services Tax (GST) collections for the month of November came in at over Rs 1.70 lakh crore. This is a rise of 0.7%, according to official data.SBI Research in a report in November had estimated that the gross domestic GST collections may come around Rs 1.49 lakh crore for November 25 (returns of October 25 but filed in Nov’25), a YoY growth of 6.8%.“Coupled with Rs 51,000 crore of IGST and cess on Import, the November GST collections thus could cross Rs 2.0 lakh crore, driven by the peak festive season demand led by lower GST rate and increased compliance while most of states experience positive gains,” SBI Research had said.This story is being updated
New Delhi: Several crucial deadlines have been extended in December 2025, including ITR for tax audit cases, ITR filing and PAN and Aadhaar linking. These deadlines will be crucial in ensuring that your financial affairs operate smoothly in the months ahead.
Here is a quick rundown of the important deadlines for December to help you stay compliant and avoid last-minute hassles.
ITR deadline for tax audit cases
The Central Board of Direct Taxes has extended the due date of furnishing of return of income under sub-Section (1) of Section 139 of the Act for the Assessment Year 2025-26 which is October 31, 2025 in the case of assessees referred in clause (a) of Explanation 2 to sub-Section (1) of Section 139 of the Act, to December 10, 2025.
Belated ITR filing deadline
A belated ITR filing happens when an ITR is submitted after the original due date which is permitted by Section 139(4) of the Income Tax Act. Filing a belated return helps you meet your tax obligations, but it involves penalties. You can only file a belated return for FY 2024–25 until December 31, 2025. However, there will be a late fee and interest charged.
PAN and Aadhaar linking deadline
The Income Tax Department has extended the deadline to link their PAN with Aadhaar card to December 31, 2025 for anyone who acquired their PAN using an Aadhaar enrolment ID before October 1, 2024. If you miss this deadline your PAN will become inoperative which will have an impact on your banking transactions, income tax return filing and other financial investments.
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