Gen Z Is Elevating Craft Beverages in the Foodservice Market, Per Tech Firm

In a world riddled with economic uncertainties, the foodservice industry is undergoing a remarkable transformation, propelled by Gen Z's insatiable appetite for unique experiences and penchant for affordable, small indulgences – according to Botrista, a beverage solutions tech company.

Gen Z, the largest and most diverse generation with a staggering spending power of US$360 billion, craves diversity and personality in their dining and food and beverage experiences, the tech company noted, explaining that Gen Z has a fervent desire for experiences that go beyond the ordinary or offer a respite from the daily grind.

Botrista pointed out that Gen Zers:

  • Are self-reliant, collaborative and care deeply about the environment.
  • Prioritize value, freshness, health and diversity in food choices, especially options related to diverse ethnic and cultural backgrounds.
  • Spend most of their disposable income on dining out.
  • Perceive craft drinks as a gateway for exploration and indulgence.

Of course, unique craft beverages fit the Gen Z “bill” perfectly, per Botrista, because craft drinks are a gateway for exploration and indulgence on a budget.

Boba tea and craft tea drinks, for example, or even artisanal lemonades and cold brew coffee, are no longer niche treats — they're the drinks defining Gen Z's food, beverage and dining experiences.

Craft Drinks Beverages Tea and Gen Z - Trends Report
(Photo by: Dima Berlin / BigStock.com)

A new report from Botrista, whose DrinkBots automate the production of upscale craft beverages for foodservice operators, shows that it's not just about the drink itself. For a generation who views food and beverage as part of its identity, specialty options are an opportunity for self-expression and indulgence.

More than "social lubrication," as Natalie Battaglia, influencer and founder of The Mindful Mocktail, calls them, drinks have become not only social catalysts for Gen Z but also a healthful indulgence. According to analysis firm Cassandra's 2022 survey, more than half of Gen Zers actually believe that what they eat or drink is indicative of who they are as a person.

The traditional beverage industry now stands at the threshold of a craft drink revolution, and creatively blending traditional and artisanal drinks is the recipe for success, according to Botrista.

The company noted that the culinary and foodservice world is driven by the insatiable thirst of Gen Z for exceptional experiences, memorable moments and craft drinks that tell their stories. Yet, interestingly, for restaurants and foodservice establishments that offer these new craft beverages, they do not seem to cannibalize sales of tried and true drink favorites.

For example, a California rice bowl concept witnessed a remarkable 59 percent surge in sales of carbonated soft drinks after it introduced premium craft beverages made by Botrista's DrinkBots. Similarly, a New York-based Mediterranean concept experienced a 14 percent increase in carbonated soft drink sales after it introduced craft beverages made by Botrista's DrinkBots.

The report also found that craft beverages prompt additional customers to order beverages and that this, in turn, prompts other people in the same group to order beverages as well. So even traditional carbonated soft drinks benefit.Indeed, the foodservice and restaurant industry have an opportunity to capitalize on unique craft beverages, including drinks that feature tea, by expanding their drink menus. They can also cater to the adventurous Gen Z palate, increasing customer appeal and sales opportunities.

For the tea industry, all of this means an opportunity to reach the restaurant and foodservice market in new or innovative ways.

To learn more about Botrista, visit Botrista.com.

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