ver the past several years, the beverage landscape in foodservice has changed dramatically. Five or ten years ago, the main drinks available were carbonated soft drinks (CSDs), tea, and coffee. While these continue to be volume drivers in the channel, there has been a shift in consumer tastes, needs, and behaviors. CSD sales are flat to down, and several alternatives are now vying to take their place on menus. As a result, now is the time to re-evaluate hotel beverage programs. Here are some interesting trends to consider:

1. Health and wellness are impacting beverages. One of the biggest macro trends impacting the industry today is consumer demand for products that meet their health, wellness, and nutrition needs. Beverages poised for the greatest growth going forward are those meeting these profiles. Teas are the most obvious growth area here, along with smoothies and bottled water. In addition, while “fortified” drinks have not yet caught on extensively in foodservice, many think it’s just a matter of time.

2. Energy drinks are becoming mainstream. To many older consumers, an “energy drink” is probably a cup of strong black coffee. However, after emerging several years back as an alternative beverage on the club scene, energy drinks have slowly worked their way into the mainstream. Most bars now offer a multitude of cocktails prepared with these products, but the drinks are also tremendously popular on their own, especially with younger people. Their presence on menus is still limited at major chains, but this is an important opportunity to connect with those consumers.

3. Frozen (nonalcoholic) drinks are hot. With the rise of the smoothie, frozen beverages have become a new form of meal replacement. They fit well within the broader health and nutrition trend and are also popular as a snack. But opportunities for frozen drinks extend beyond smoothies. We’re seeing a lot more experimentation with nonalcoholic frozen beverages on restaurant menus. Frozen coffees and other “chiller” drinks have consumer appeal, but even more critical for the operator, they provide a higher price point relative to CSDs, teas, and other cold drinks.

4. Bottled beverages are gaining at the expense of dispensed drinks. Dispensed beverages have always been the standard in foodservice, and most operators prefer them due to the higher margins they provide. Given consumer demand for on-the-go convenience, however, single-serve bottled beverages are where the growth is. Most limited-service operators have grab-and-go coolers, and even full-service restaurants are increasing the number of bottled items they carry.

5. Starbucks has given every operator permission to raise the bar on their coffee program. The fastest growing hot beverage category is specialty coffee, and more and more operators are moving their coffee programs away from regular coffee. In addition to more attractive price points, premium coffee enhances consumer perceptions of the overall foodservice program. Starbucks pioneered this area, and many operators are happily following suit.

With so many things going on in beverages, it’s important for hotels to stay up on trends. If you haven’t already, I recommend taking a fresh look at your beverage program to make sure your offerings match current consumer dynamics.