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Beverages in the Restaurant Industry are undergoing rapid changes. As the Millennial and Gen-Z generations become the primary restaurant-goers, they are driving an increased demand for innovation and experimentation when it comes to coctail offerings. This has led to a vast array of new trends challenging the status quo of typical restaurant beverages. While these trends offer a great marketing opportunity for restaurants and could help create customer loyalty, understanding the pros and cons is vital for restaurants so they can make well-informed decisions on whether to pursue a certain trend or not.
Craft Brews See Comeback
One of the more popular trends that is making a resurgence is craft beer. Craft beer has been on a growth spurt in the past few years not just domestically, but also worldwide. As of 2019, the craft beer market is estimated to be worth $60 billion and is expected to grow at a CAGR of 10.3% from 2020-2027. Thanks to this growing demand, craft beers have made their way into restaurants.
Restaurants are now increasingly focusing on localizing beer on tap for their customers. This has allowed for restaurants to create an identity as supporters of local producers. Localized craft beer tap feature promotions are becoming popular and this helps restaurant to build relationships with a local community, which can help promote their own business in the long run. At the same time, however, the pursuit of craft beers goes hand in hand with a lot of paperwork. Craft beers are legally licensed in most places, and proper permissions need to be given to brew and serve it. Restaurants also need to consider the amount of space they would need to store the beer kegs, and whether there are enough customers willing to pay the premium for the craft beers.
Non-Alcoholic Beverages
An area of growth that the restaurant industry is investing in is non-alcoholic beverages. There has been a tremendous upsurge in the demand for non-alcoholic craft beers, wines, seltzers, and other drinks in recent years. This can be attributed to the growing health consciousness of the younger generations, leading to an increased desire for healthier beverages. Non-alcoholic drinks provide a great way to target those customers that don’t want the presence of alcohol or are abstaining, while also catering to a more health-conscious mindset.
At the same time, restaurants need to understand that competition with other non-alcoholic beverage companies is fierce. This is due to the easy availability of these products through vendors and distributors, among other things. Non-alcoholic beverages represent a heavily saturated consumer market and restaurants need to think deeply on how they intend to differentiate their offerings from the competition.
Coffee Mixology
Coffee mixology has emerged as a way to innovate the traditional coffee experience. By adding uncommon ingredients like cream, oat and almond milks, dark beer, chocolate, and more to the mix, coffee is being taken to the next level. An interesting trend that has come out of this is the act of combining beer with coffee to make beer lattes. These drinks are perfect for customers looking for something that is more unique and uncommon.
Despite the growing popularity that coffee mixology has gained in the past few years, restaurants should consider the additional cost associated with the dish before deciding to add one to the menu. Coffee is already expensive, and the additional cost of these specialty ingredients that go into making a beer latte can really add up. In addition, these drinks may require additional equipment and tech to be able to create them, which could represent another added cost.
Sparkling and Botanical Beverages
Botanical drinks and sparkling beverages are becoming increasingly popular in the beverage industry as their prevalence has grown over the past few years. These drinks are carbonated using natural ingredients such as herbs, spices, tea, and a variety of colors. These drinks are generally marketed as eco-friendly options because they contain natural flavors and reduce the need for plastic bottles.
The growing demand for these drinks has led to a wide number of producers creating these botanical drinks. This, in turn, has increased the competition and put downward pressure on the prices of these beverages. This, in turn, makes it difficult for restaurants to continue profiting from these drinks. In addition, restaurants should consider the cost associated with adding these drinks to their drinks selection as these beverages may require additional preparation work and require customers to be aware of the beverage’s ingredients, which could lead to additional costs in terms of menu printing.
Beverage trends present restaurants with a great opportunity to create unique and varied beverage selections, build customer loyalty, and attract new customers. While this can be an excellent way for restaurants to innovate and create new opportunities, it is also important to understand the pros and cons of each trend in order to properly assess whether its implementation is the right way to go or not.
