Can Beverages Invigorate Fast Food Sales?

 

In today’s fast-paced foodservice landscape, beverages are no longer just sidekicks, they’re strategic power players. From driving incremental revenue to shaping brand identity, drink innovation is emerging as a high-margin lever for fast-food chains seeking relevance, differentiation, and consumer loyalty. Especially as convenience stores, armed with fast, easy access and next-gen beverage lines—are drawing traffic away from traditional drive‑thru setups.

 

The Grocerant Guru’s Perspective

Steven Johnson, known as the Grocerant Guru®, shines a spotlight on how C‑stores are rewriting the playbook. He emphasizes that streamlined, photogenic beverage bundling and mix-and-match innovation not only drive margins, but also “soften price perceptions” via loyalty—challenging long-standing QSR combos.

Johnson specifically points out that “brand relevance is driven … by new food products in combination with new avenues of distribution”, such as Slurpee flavors and proprietary coffee blends that C‑stores are pushing hard. His belief? Fresh, innovative drinks, especially dispensed through quick-access formats, are blurring the lines between grocery, gas, and QSR.

 

C‑Store Advantage: Faster Than Your Drive‑Thru

Speed & convenience: Many consumers are abandoning fast‑food drive‑thrus due to slow service and long lines. C‑stores, however, are siphoning this traffic by offering swift grab-and-go options while filling the tank—no wait required. In fact, consumers view C‑stores on par with QSRs—59% would choose a meal there, and nearly 30% already do.

Massive foot growth: Since early 2021, foot traffic into C‑stores has surged nearly 59%, consistently outperforming quick-service restaurant traffic. In 2024 alone, C‑store foodservice grew 5%, projected to jump another 5.7% in 2025—outpacing QSR to QSR’s 4.1% growth.

Slurpee & Beverage Innovation

Portfolio hero: 7‑Eleven’s Slurpee isn’t just a slush—it’s a brand icon. With 14 million Slurpee’s consumed daily across 19 countries, it serves as proof of how a beverage can boost foot traffic, enhance brand equity, and ignite social media buzz.

Private-label momentum: The chain’s introduction of 7‑Select sparkling iced teas—like raspberry and peach—signals bold beverage innovation. These fruit-forward beverages grew 10.5% year‑over‑year in C‑store menu.

Photogenic & shareable: These photogenic liquid offerings are just the pull consumers crave—boosting in-store dwell time and generated organic buzz.

 

Global Strength & Cultural Impact

Worldwide reach: With over 85,000 stores in 20 countries, 7‑Eleven ensures Slurpee’s ubiquity—from North America to Asia—illustrating how beverages can transcend cultural markets.

Cultural rituals: Campaigns like "Bring Your Own Cup Day" and the annual Slurpee Day (July 11) reinforce consumer loyalty through participation and spectacle

 

Strategic Implications for Fast‑Food Chains

Rethink loyalty: As Johnson predicts, beverages—plus personalization, gamification, and exclusive flavors—will become the new currency of loyalty programs.

Adapt back‑of‑house setups: QSRs must reconfigure to include wellness and functional drink lines (e.g., adaptogen blends), or risk being outpaced by C‑stores.

Innovate sub‑brands: Expect beverage-first spinoffs, akin to fast-food chains planting their flags in the drive‑thru-only beverage world.

Optimize speed: Fast-food chains must dramatically improve drive‑thru efficiency to counteract the C‑store effect. Anything longer than two to three minutes can push customers into C‑store lanes.

 

Think about this

Beverages have transcended sidekick status—they’re becoming the linchpin of brand strategy, loyalty, and modern foodservice innovation. As Steven Johnson, the Grocerant Guru®, notes, C‑stores—acting as grocery, restaurant, and beverage hubs—are outpacing fast food in both speed and consumer experience. Chains that harness beverage power, rethink back‑end operations, and optimize speed will capture the next wave of growth.

Success Leaves Clues—Are You Ready to Find Yours?

One key insight that continues to drive success is this: "The consumer is dynamic, not static." This principle is the foundation of our work at Foodservice Solutions®, where Steven Johnson, the Grocerant Guru®, has been helping brands stay relevant in an ever-evolving market.

Want to strengthen your brand’s connection with today’s consumers? Let’s talk. Call 253-759-7869 for more information.

Stay Ahead of the Competition with Fresh Ideas

Is your food marketing keeping up with tomorrow’s trends—or stuck in yesterday’s playbook? If you're ready for fresh ideations that set your brand apart, we’re here to help.

At Foodservice Solutions®, we specialize in consumer-driven retail food strategies that enhance convenience, differentiation, and individualization—key factors in driving growth.

👉 Email us at Steve@FoodserviceSolutions.us
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Franchisee can drive Success for Chain Restaurants

 

There is no need to list the thousand of restaurants that have closed during the pandemic. Nor is there  a need to list all of chain restaurants that have filed for bankruptcy over the past five years. There is one question all operators need to ask themselves.  That question is: Do consumer find relevance in my restaurant or brand?

If you don’t have customer relevance, you have very little value.  Consumers are dynamic not static, they evolve, your restaurant needs to evolve with consumer or risk losing relevance, customer, sales and profits according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Think about this in June of 1919 over 101 years ago A&W was founded.  It grew with customer relevance, full flavored food that was craveable. During the late 70’s and early 80’s chain leaders resorted to ‘brand protectionism’ of the status quo and things began to go south.  They were bough and sold and at the core chain restaurant leader after chain restaurant leader trying to do no harm continues with the status quo mindset.  Ok, we all know that did not work.

In August, 2020 sales at franchised A&W Restaurants grew 8.2 percent over last year, following double-digit increases in February, May, June and July. Systemwide, year-to-date same-store sales growth is at the highest level since franchisees acquired the brand in 2011. Now they did that during the pandemic when other chains were folding.  Think about that!  These A&W Franchisee are close to the consumer and moving forward with relevant messaging and branding.

A&W CEO Kevin Bazner stated,  “This is a remarkable recovery from the dark days of March and April,”. “As we head into the fall, sales at nearly two-thirds of our stand-alone restaurants are up over 2019, which was our eighth straight year of comp-store sales growth.” The majority of co-branded locations also are up over last year.

So get this, since franchisees acquired the company from YUM! Brands in 2011, average unit sales have increased by over 38 percent. According to Bazner, the brand’s performance is a key reason it was recognized by Franchise Business Review as a Top Food and Beverage Franchise for the second straight year.

A&W was just one of 35 franchise food brands to be listed by the market research firm that performs independent surveys on franchisee satisfaction. It analyzed 18 months’ worth of data from over 4,300 franchise owners representing 100 franchise brands in the food sector. A&W franchisees were surveyed on 33 benchmark questions about their experience and satisfaction regarding critical areas of their franchise systems, including training and support, operations, franchisor/franchisee relations and financial opportunity.

Bazner continued, “Being owned by franchisees, we are solely focused on their success. According to Franchise Business Review, A&W is outperforming its competitors and franchisees' expectations. “It is very rewarding to have our franchise partners rate their satisfaction with A&W so highly.”

A&W currently has 15 franchise locations in development. A new stand-alone restaurant opens early next month in Mountain Lake, Minnesota, southwest of Minneapolis-St. Paul. Who is better at listening to your consumers? That’s right, those who are closest to them. 

Known for its All American Food, fresh food and beverage including Root Beer that is made fresh in each restaurant and served in frosty mugs, there are more than 900 A&Ws in the U.S. and Asia. Keep doing what you are doing A&W franchisee.

For international corporate presentations, regional chain presentations, local educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert and public speaking will leave success clues for all. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869