McDonald's is the latest fast food chain to offer fancier drinks, as the industry seeks new growth avenues by enhancing beverage menus. The company announced Tuesday it will launch six crafted beverages in U.S. restaurants on May 6, joining competitors like KFC, Wendy's and Taco Bell that have elevated their drink offerings to lure customers away from rivals such as Starbucks and Dutch Bros.
New Menu Items
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. The company emphasized that visual appeal through bright colors and foams, as well as 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," said Alyssa Buetikofer, chief marketing officer for McDonald's USA, in a statement.
Profitability and Operations
The new drinks are also more profitable for fast food chains than standard soda fountain drinks or plain coffees. For example, a small Pineapple Citrus Sparkling Energy drink cost $3.29 at a Michigan Wendy's, while a small drink from the restaurant's Coca-Cola Freestyle machine cost $1 less. McDonald's is also adding a "beverage specialist" role at its 14,000 U.S. restaurants. These employees will have dedicated spaces behind the counter to focus on drinks. Initially, high-performing employees will be selected, but eventually all employees will be encouraged to rotate through beverage positions.
Background and Previous Efforts
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 wanted 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," Chairman and CEO Chris Kempczinski said at the time.
CosMc’s menu included a turmeric spiced latte and a prickly pear slushie with popping candy on top, but the company closed all eight locations last spring. Kempczinski noted that many 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.
Industry Trends
Other chains are also jumping on the beverage bandwagon. KFC’s Kwench drink menu performed well in tests in Manchester, England, last year and is rolling out to 3,000 stores in the U.K., Australia and Canada this year. The menu includes shakes like a Strawberry Shortcake Krunch, as well as boba refreshers and iced coffees. Taco Bell, which is also owned by 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.
