The beverage landscape in restaurants is undergoing a dramatic transformation, moving from an afterthought to a primary driver of guest traffic and revenue. In a recent Fast Casual Nation podcast episode, hosts Paul Barron and Cherryh Cansler sat down with SG Ellison, CEO and President of Diversified Restaurant Group (DRG), and Ryan Maybee, Co-Founder and Managing Director of J. Rieger & Co., to explore the trends reshaping how restaurants approach their drink offerings. The conversation revealed that whether operating 350 Taco Bell franchises or a historic Kansas City distillery, beverage innovation has become essential to staying competitive.
Ellison shared insights on DRG’s groundbreaking Live Más Café concept, which launched just 13 months ago and has already expanded to 34 locations across Southern California, Dallas, and Houston. This shop-in-shop model transforms approximately 20% of Taco Bell dining rooms into dedicated beverage experiences, complete with “Bell-ristas” serving Mexican-inspired drinks like churro chillers, Mexican mochas, and the popular Dirty Baja Blast. The concept serves dual purposes: meeting growing consumer demand for intentional beverage trips while reactivating dining rooms that saw decreased traffic post-pandemic. Ellison emphasized that the café functions as an incubator, allowing DRG to test beverages that could eventually roll out across Taco Bell’s 8,000-unit system.
The protein-forward beverage trend has captured significant market attention, with major chains like Smoothie King, Tropical Smoothie Café, and Starbucks introducing coffee-protein hybrids. While Ellison acknowledged this trend is still emerging for quick-service brands, he noted that beverages are increasingly becoming destination purchases rather than mere add-ons to food orders. This shift represents a fundamental change in how consumers interact with restaurant brands, creating new daypart opportunities and revenue streams that savvy operators are rushing to capture.
Maybee brought a craft perspective to the discussion, highlighting how elevated cocktail expectations have permeated every segment of the industry. At J. Rieger & Co., he’s addressed the challenge of delivering high-quality craft cocktails at speed through an extensive draft cocktail program that runs throughout the distillery’s multiple bars and event spaces. This approach allows them to serve a thousand guests simultaneously without sacrificing quality or hospitality. Maybee noted that consumers now expect premium drinks regardless of venue, with cocktails commanding $15-20 price points across casual and upscale establishments alike.
The conversation also touched on emerging trends like functional ingredients, adaptogenic mushrooms, and the sober-curious movement. While Maybee expressed skepticism about non-alcoholic spirits—calling them “flavored water” that fails to replicate the spirit experience—both guests agreed that quality zero-proof options have become table stakes for any beverage program. Ellison pointed to the success of customization in DRG’s Taco Bell Cantina locations, where 64 different Twisted Freeze options contribute to nearly half of sales at their Las Vegas flagship. This variety-driven approach reflects broader consumer desires for personalized experiences and exploration.
Looking ahead, both leaders emphasized the importance of balancing innovation with operational efficiency. Ellison highlighted that speed must be paired with experience, citing examples from Seven Brews and Dutch Bros where customer engagement during longer wait times creates perceived value. Meanwhile, Maybee stressed the irreplaceable human element in hospitality, expressing doubt that technology will fully replace bartenders and the personal connections they create. As the industry continues evolving, one thing is clear: beverages have moved from the margins to the center of restaurant strategy, offering operators new opportunities to differentiate, drive traffic, and build loyalty in an increasingly competitive market.
The value wars intensifying across QSR pose both opportunities and risks for brands. McDonald’s and Taco Bell continue to dominate, though concerns linger about sustainability—particularly Taco Bell’s strategy of doubling limited-time offers year over year. Chipotle faces a more complicated picture, with stock rebounds driven by aggressive discounting and new protein bowls at lower price points. While 2026 may provide short-term relief as they lap weak 2025 results, Halen warned that training consumers the food isn’t worth menu price could damage the brand long-term, especially when they have to lap these promotions in 2027.
On the marketing front, the industry is experiencing a fundamental shift toward micro and mid-level influencer partnerships rather than expensive celebrity endorsements or traditional digital advertising. Tauzin advocates for authentic user-generated content strategies, particularly for independent operators who can’t compete with corporate marketing budgets. Notably, research is showing Gen Z consumers discovering restaurants through TikTok reviews before Google, marking a generational shift in how brands must think about discovery and reputation management. The key, according to Tauzin, is treating social media as a revenue channel, not just a brand scrapbook.
Looking ahead, the consensus is clear: 2026 won’t have a magic technology bullet or revolutionary trend. Success will return to fundamentals—exceptional operations, smart marketing, and genuine value perception. Brands providing more food on the plate, like Darden and Texas Roadhouse, are outperforming because consumers notice and reward quality and portion size. For operators at this critical juncture, the path forward requires doubling down on execution excellence while remaining agile enough to adapt messaging and value propositions to an increasingly sophisticated and deal-conscious consumer base.
