McDonald's New Strategy to Draw in Gen Z: 'Refreshers'

McDonald's may be showing up late to the "refresher" craze, but it's hoping to make a lot of money once it gets there. Starting in May, the chain will roll out colorful, fruit-forward beverages nationwide, plus a so-called "crafted" or "dirty" soda—think Sprite plus blueberry syrup and foam, per the New York Times. The move drops McDonald's into a crowded field that already includes Starbucks, Dunkin', Sonic, Taco Bell, and Caribou Coffee, all chasing younger customers who want cold, highly photogenic drinks meant for social media at all hours.

There's no fixed definition of a refresher—brands are essentially slapping the label on everything from strawberry lemonade to coconut-milk concoctions—but the category is booming. Starbucks says its refreshers are a $2 billion business; Dunkin' calls them a huge recent sales driver. For McDonald's, the drinks are about more than following a trend, however. Beverages typically deliver better margins than burgers, a key advantage as food and labor costs climb and diners go for cheaper meals.

After testing the new refresher line in 500 restaurants, tweaking everything from freeze-dried strawberries to boba sizes, franchisees say the new drinks require little new equipment and will be heavily advertised. "We may be late to the party," one franchisee said, "but we are the most interesting guest." Also coming up on the Mickey Dee's beverage menu: a Red Bull-infused energy drink, per the Wall Street Journal. McDonald's has tested energy drinks in the past, including a sour cherry version, and the company said it witnessed "real momentum in beverages" among the younger set as a result, reports CBS News.