1. LSRs will get boozier
Younger consumers are twice as likely as their older cohorts to want to buy booze from a limited-service restaurant (LSR)—c-stores’ biggest foodservice competitor. Half of all consumers between the ages of 21 and 34 said they would order adult beverages during most visits to LSRs if the drinks were available, compared to less than a quarter of consumers 35 and older. Moreover, these Gen Zers and millennials are expecting alcohol drinks from LSRs more now than they were two years ago, particularly at c-stores’ two biggest competitors, coffee shops and fast-food restaurants.
Despite the operational challenges adult beverages present at LSR concepts, several brands have already implemented successful alcohol service methods, and Taco Bell continues to expand its boozy cantina concept. Additionally, Starbucks launched an Espresso Cloud IPA—an espresso and beer mashup—in October, and the chain continues to expand its Starbucks Evenings program.