Business & Finance
Cold drinks dominate sales at major chains as Gen Z preferences shift away from hot coffee
High profit margins and social media trends drive beverage companies to pivot toward customizable iced drinks.
The short version
- Younger consumers, particularly Gen Z, are increasingly favoring customizable cold beverages such as refreshers and dirty sodas over traditional hot coffee.
- Cold beverages now account for over 70% of beverage sales at Starbucks and represent more than 60% of out-of-home drink purchases by UK consumers under 25.
- Major chains including Dunkin', McDonald's, Chick-fil-A, and Taco Bell are expanding cold, non-caffeinated, and fruit-based beverage lines to target younger demographics.
Key facts
- Starbucks reports that cold beverages make up more than 70% of its total beverage sales in the U.S. and account for three out of every four drinks sold.[BBC News]
- According to data from Worldpanel by Numerator, over 60% of out-of-home beverage purchases made by UK consumers under 25 are cold drinks, compared to 30% for consumers aged 55 and older.[BBC News]
- Data analytics firm Placer.ai reported that Starbucks' three-day release of the Unicorn Frappuccino boosted foot traffic to stores by 44%.[BBC News]
- Fast-food and beverage chains including Dunkin', McDonald's, Chick-fil-A, and Taco Bell are launching fruit-based and customizable cold drinks to appeal to Gen Z.[BBC News]
What remains uncertain
- Whether promotional partnerships with celebrities will generate long-term customer loyalty among younger demographics remains unverified.[BBC News]
Sources
- Forget Starbucks coffee - Gen Z like their drinks ice coldBBC News - World