A recent report from NPD Group found that American ordered 4% fewer beverages at restaurants over the past five years.
It is no secret that Americans are actually drinking less soda as America's love affair with healthier options such as coffee, "so-called" energy drinks and bottled water, has become stronger, which is also the main reason as to why corporate icons such as Coca-cola and PepsiCo have been cutting into profits. Time shared that the trend is starting to take its toll on the restaurant industry at the moment, wherein easy-to-mark-up and cheap-to-produce soft drinks have been long been a cash cow.
QSR magazine, a trade publication for the fast food and "fast-casual" dining industries, reported that there is actually a decline of four billion orders over the past half-decade. The kinds of beverages which saw orders fall, including carbonated soft drinks and milk which account for about half of all beverage orders.
"There are more growing beverages at restaurants in the last five years than declining, but the declining beverages, like carbonated soft drinks, are larger in servings volume, according to NPD's Beverages at Foodservice: Satisfying our Thirst for Beverages report, which examines consumers' beverage choices, what and where they order, and the importance of variety in driving their decisions," the mag reported. "Iced/frozen coffee, specialty coffee, tap water, and bottled water top the list of growing beverages. Diet and regular carbonated soft drinks, milk, and brewed coffee have lost the most servings of the declining beverages."
However, the development cannot come as welcome news for the restaurant industry. Fast food outlets such as Wendy's and McDonald's have come to rely heavily on their sometimes loss-making dollar menus which offered appealing prices for food on the assumptions that diners will round out their bill by tacking on orders for highly profitable items like soda and french fries.
"Despite recent declines in beverage servings, the fact is that beverages are still an important part of foodservice visits-whether by themselves or as part of a meal," NPD's Foodservice Practice President Warren Solochek said. "In order to drive beverage orders, foodservice operators will need to understand consumers' changing tastes and offer an array of quality beverage choices, including healthy options."
