QSR operators risk stagnation without clear beverage strategies

Signature and functional drinks are now key to growth.

Australia’s quick-service restaurant (QSR) market has expanded 9.1% in recent years, but growth is increasingly being driven by beverages rather than food. Industry experts warn that operators without a clear beverage strategy risk falling behind.

Michelle Thomson, General Manager, ANZ at Kerry, said beverages are no longer optional extras. “Beverages have moved from being a sidekick to taking center stage, and we're no longer seeing it just as an optional add on,” she said.

Signature drinks are emerging as powerful revenue drivers. “In a highly competitive market, signature beverages are actually doing the heavy lifting. They're powerful revenue drivers with strong margins, so they're increasing the average transaction price without introducing additional operational complexities,” Thomson said. She pointed to The Coffee Club’s pistachio drink range as an example of “crave worthy moments” that generate buzz and elevate brand loyalty.

Thomson also noted the rise of functional beverages, with consumers increasingly seeking health-focused options. “They're seeking beverages that align with their health needs and their wellness goals, so products that support energy, gut health and plant based diets,” she said. Research from China shows 42% of consumers are interested in outcome-specific beverages such as collagen, prebiotics, and immunity boosters, a trend mirrored in Australia.

Neglecting this shift could be costly. “Neglecting your beverage strategy isn't about just missing an opportunity. It's a sure fire way to stagnation, because when you overlook the critical aspect of this business, you're leaving consumers with the opportunity to experience their beverage elsewhere,” Thomson warned.

With up to 60% of operators identifying beverages as key to attracting Gen Z, Thomson said the future will belong to brands that develop deliberate, repeatable platforms. “Forge a powerful beverage strategy that puts your brand in the forefront of customer minds, to stay relevant, keep your customers engaged, and establish that lasting identity to win in what is a very competitive landscape,” she said.