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Menu Development | By Marc Halperin

Saturation Point
Home Brewing

The price-sensitive quick-serve consumer is not about to splurge $2 on an eight-ounce energy drink. But couldn’t chains work with their suppliers to formulate proprietary versions—at far lower cost—using the same basic ingredients that have made the likes of Red Bull such an international phenomenon? Though it has made enormous headway in a short time, that brand was practically unknown just seven or eight years back. Given the company’s branding expertise and marketing muscle, imagine McDonald’s devising its own energy drink, branding it (how about the McKick?), developing a unique and distinctive identity for the product, and mobilizing its promotions machine to lend the new offering a profile that would ultimately come to dwarf the competition.

It’s no longer realistic to imagine the quick-serve soda dispenser as a static, stand-alone entity.”

The same tactic could be applied to fruit waters (or agua frescas), specialty iced tea and coffee beverages, and even smoothies. My assumption has always been that if the margins on carbonated fountain beverages were sufficiently healthy it wouldn’t make sense for chains to produce their own unique drinks. Today, though, the need for diversification, specialization, and differentiation make that assumption worth revisiting.

Health Halo

It’s no secret that fast-food outlets have borne the brunt of finger pointing from health organizations, parents groups, and other activist corners since the phrase “childhood obesity epidemic” entered the national lexicon. It’s an absurd oversimplification, of course, but the criticism seems to have stuck. To their credit, chains have taken pains to ensure that their menus now boast lighter and healthier choices. But, as the wellness-beverage trend clearly shows, there is an opportunity for quick-serves to make additional progress on the health front simply by making lighter beverages a bigger part of the picture.

A line of healthy juices, natural sodas, vitamin-infused waters, and lightly sweetened teas could serve to cement chains’ growing reputation for offering a variety of healthy items in addition to more traditional fare.

Brand Equity

Whether or not you’ll ever see a ginkgo biloba, Echinacea, and St. John’s Wort-fortified green tea elixir on the menu at your local burger chain or sandwich stop remains a subject for further research. Obviously, all drinks are not for all consumers. But if you’re a Dominos, Taco Bell, or Jack in the Box, with a built-in customer base of young males prone to ordering meals in the dead of night, the idea of offering those hard-charging young bucks an energy drink to go with their late-night combo meal or pizza orders seems like a good one. Likewise, a fast-casual chain with a more upscale clientele might consider the wisdom of adding more upscale espresso and tea beverages throughout the day. And when it comes to the morning meal, which arguably presents more opportunities for healthy choices than any of the others, the opportunities are almost endless. Offering a line of blended fruit juices high in vitamins and antioxidants, as well as protein shakes or other lighter, portable options could help draw health-conscious consumers to the drive-thru better than egg, bacon, and cheese sandwiches.

All of which is to say, it’s a big, bold, beverage world out there, and few businesses are in a better position to capitalize on the cornucopia than quick-serve restaurants. Bottoms up!

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As culinary director and partner at San Francisco’s Center for Culinary Development, Marc Halperin assists food and beverage companies with new product development and consumer research.