Soft drinks have been quenching the thirst of U.S. consumers for more than a century. The nation’s oldest soft drink is Vernors Ginger Ale, created in Detroit in 1866 and it is still available from Keurig Dr Pepper. Dr Pepper was invented in Waco, Texas, in 1885; Coca-Cola was formulated in Georgia in 1886, and Pepsi-Cola was born in New Bern, North Carolina, 12 years later. 

Fast forward to today. Cold dispensed beverages make up the second largest foodservice category in the industry, barely edging out hot dispensed. The category generates more than 8% of convenience store foodservice sales, according to NACS data. 

“In 2024, cold dispensed beverages was the only category to outpace the NACS generated convenience foodservice CPI of 7.8%,” said Emma Tainter, research analyst and writer for NACS. “Gross margins decreased year over year, but the category still managed a high margin of 51.38%.”

What Customers Want

Traditional sodas remain top sellers at the fountain, but Gen Z consumers are redirecting beverage culture with their penchant for personalization, flavor exploration and better-for-you ingredients.

“Not everything on the fountain is sparkling or a soda. We have plenty of brands and flavors represented on the fountain for c-stores,” said Rebecca Johnson, director, dispensed innovation for The Coca-Cola Company. “Top brands are Minute Maid, Vitamin Water, Vitamin Water Zero, Powerade and Hi-C.”

Alongside core fountain staples like Dr Pepper, 7UP, A&W, Canada Dry and Sunkist, “we’re expanding our presence with flavor-forward dispensed innovations that meet rising demand for bolder tastes and customizable beverage experiences,” said Kevin Martello, vice president, foodservice and industry relations at Keurig Dr Pepper. “Dr Pepper Cherry, Dr Pepper Creamy Coconut and Snapple Zero Sugar Peach Tea are performing exceptionally well for our convenience customers. These products fuel the rise of mashups, dirty sodas and floats, giving retailers high value, on-trend options that drive variety, excitement and incremental fountain traffic.”

“Dirty sodas are exploding in popularity, as the trend focuses on personalization, indulgence and creating that picture-perfect Instagram-ready beverage,” Johnson said. “Consumers want to make it their own through customization and creating their own experience. This can be as simple adding a cold foam, or it can be more layers like a flavored syrup, a seasoned salt, an add-in like a burstie, candy pieces, dried fruit and a flavor rim or garnish to wrap it up. The options are endless.”

In response, retailers are turning traditional coffee condiment stations into multi-use hot and cold beverage bars. 

“Keurig Dr Pepper’s expansive fountain lineup supports this shift, with offerings that serve as versatile bases for mashups and flavor-forward builds,” said Martello. “Looking ahead, demand for bold flavors, frozen hybrids and customizable add-ins will grow as the fountain evolves into a ‘total premium beverage bar’ experience.”

Beverage Bar Updates

Impressed by the generous margins of fountain drinks, some retailers are upgrading their beverage bars to enhance their appeal. One example is Oklahoma-based QuikTrip (QT), which began rolling out a proprietary dispensed beverage program last year that is expected to be in all QT stores by summer.

“Our customers will notice exciting upgrades with brand-new equipment designed to deliver even better-tasting drinks,” said Aisha Jefferson, corporate communications manager for QuikTrip. “We’re also expanding our selection so customers can enjoy more flavors, more variety and more reasons to love their favorite stop. QT’s very large selection of self-serve drinks sets us apart, and we’ll continue finding ways to surprise and delight our customers.

The fountain drink machines let customers select from 40 options, including non-carbonated Powerade and the chain’s own proprietary energy drink, Rooster Booster. QT’s tea machine, which won the 2025 Kitchen Innovations award from the National Restaurant Association, brews different teas at the appropriate temperatures to produce the best flavor and avoid staleness. It also features adjustable sweetness levels, plus new options such as a zero-sugar sweetener and lemon and lime flavored add-ins. 

And don’t overlook the attraction of colorful, branded cups at the fountain. 

“We’ve found that running limited-time cup designs throughout the year keeps customers excited about what’s coming next,” said Jefferson. “Cups are essentially free mobile advertising. They create buzz and keep QT top of mind. We’re committed to staying competitive in all aspects.”

In January, Parker’s Kitchen, based in Savannah, Georgia, celebrated its 50th anniversary with a grand opening celebration at its newest location, a 6,000-plus-square-foot store in Port Wentworth, Georgia. The event also introduced the company’s new made-to-order beverage program from Botrista, a California technology company founded by a former Tesla engineer. 

The one-touch system transforms customers into mixologists, allowing them to create customized iced and frozen coffees, lemonades, boba teas, energy drinks, shakes and smoothies. The dispensing equipment was designed to correctly measure and dispense ingredients, such as plant-based milk, teas, natural flavors and tropical juices, and then whip them into one of 2,000 different drinks that are ready to consume in less than 20 seconds. 

C-Store Flavors and Favorites

“When we examine cold foodservice beverages that consumers say they’re drinking more often over the past two years, we see functional drinks high on the list for Gen Z, millennial and Gen X consumers: boba/bubble tea, cold/iced/blended coffee, kombucha/shrub, yogurt drinks and smoothies,” said Donna Hood Crecca, senior principal at Technomic. “Additional research shows consumer interest in better-for-you beverages at c-stores, with 23% of consumers saying they expect c-stores to offer healthy dispensed or made-to-order cold and frozen beverages.” 

“We do see generational skews for some flavors, such as orange, mango and pineapple being more appealing to Gen Z than to other generations, while black cherry and lemon skew for Boomers,” she said. 

Technomic also reports that 61% of c-store patrons say they purchase cold coffee in the channel at least once a month and 36% say they do so at least once a week. 

“Interestingly, more consumers rate c-store cold coffee as good or very good on quality, value, selection and uniqueness than say the same of cold coffee offerings in QSRs,” Crecca noted. “Also, 68% of consumers say c-stores are just as capable of offering quality cold coffee as fast-food restaurants and coffee shops, and 58% say it’s a better value at c-stores than at other foodservice locations.”

Boost Sales

Having the right flavors and add-ins is important to maintaining a successful beverage bar, but there are other steps retailers can take to make their outlets the best place for consumers to find refreshment.

Variety remains important. According to Food Business News, 75% of Gen Z and millennial consumers will modify their drinks if given the option, and 44% of adults try a new beverage at least once a month. Datassential reports that more than a third of consumers—and half of Gen Zs—look forward to drinking LTOs, and seasonal beverages are particularly appealing to women. In fact, more than a quarter of women surveyed would be more motivated to try a new beverage if it featured seasonal flavors.

“Make the fountain highly visible by placing it in high-traffic zones and prominently featuring a variety of flavors and LTOs,” said Martello. “Keep customization at the center by offering syrups, sweet creams, toppings and other add-ins. This approach, coupled with consistent availability and simple promotions and rewards, helps drive repeat visits and loyalty—making your store the go-to daily drink stop.”

Meal deals have long been a staple of c-store foodservice, and with today’s economic uncertainty, they are even more important now. Plus, bundles are a proven way to encourage shoppers to try new products.

When it comes to fountain drinks, convenience retailers have some advantages over other foodservice operators.

“The c-store channel is unique in the sense of the amount of fountain valves they have in their stores versus a typical QSR,” said Johnson. “A QSR has on average 8-10 valves available, and c-stores can have 20-30 valves. So, there’s a lot more space to experiment with innovation and test out different options for their guests. Outlets should dedicate a valve or two for testing and bring in a rotational LTO.” 

“One example where we can assist is looking at base products, such as lemonade, and creating unique recipes based on what is already currently in a retailer’s pantry or back of house,” she said. “We’re focused on operational efficiencies in this channel and love exploring creative work arounds to partner together and bring a beverage or program to life collectively.”  

The Power of CSX Data

CSX, the engine behind category metrics and NACS State of the Industry data, provides current and customizable tools for financial and operational reporting and analysis in the convenience industry. Retailers can measure their company by any of the myriad metrics generated via our live database. Contact Chris Rapanick at (703) 518–4253 or crapanick@convenience.org for a complimentary executive walkthrough.

Customer response to QuikTrip’s Brew Bar has been “phenomenal,” said Aisha Jefferson, corporate communications manager for QuikTrip. “This project was a massive team effort spanning QT’s culinary, food science, maintenance, store development, marketing and sales teams, along with key vendor partners.”

QuikTrip’s tea machine won the 2025 Kitchen Innovations award from the National Restaurant Association. It brews different teas at the appropriate temperatures to produce the best flavor.