Unique dispensed beverage programs are a primary way c-stores are standing apart from both foodservice chains and convenience competitors. Many convenience retailers have been leaders in innovation in this space, offering distinct coffee flavor combos, novel dispensed energy beverages and other items like boba teas.

For instance, Spicewood, Texas-based TXB (Texas Born) — formerly known as Kwik Chek — has realized double-digit same-store growth in the dispensed beverage category this year with innovative offerings and marketing.

“We are seeing a lot of customers are looking for non-carbonated unique flavor options to quench their thirst,” said Kevin Smartt, CEO of TXB, which operates 49 stores in Texas and Oklahoma.

The c-store operator has expanded its soda fountain assortment by adding TXB’s proprietary “Made in Texas” fountain flavors that use pure sugar cane. 

“TXB has also expanded its more exotic drinks via the Bubbler program, where we feature pineapple, horchata, melon and hibiscus flavored drinks,” Smartt said.

TXB has rolled out a line of rehydration beverages in a number of flavors, including strawberry, orange, grape and mango. In its frozen, uncarbonated drinks, TXB’s newer sour, sweet and bold flavors, such as sour apple and strawberry lemonade, have been popular. “With the Texas weather being as hot as it’s been, our guests are looking for cold, hydrating beverages,” Smartt said.

Also helping sales is the gamification TXB features in its app. Customers can spin a digital prize wheel to win a variety of free items — including drinks. TXB also made its drinks easier to obtain by adding online ordering and delivery to its app, along with launching its Chug Club drink subscription, which gives members up to one drink per hour for $14.99 per month.

Across the c-store industry, the top trends in dispensed beverages include an increased focus on energy-infused drinks, unique coffee flavors and nitro brews, new types of teas and waters, and a growing interest in healthy options.

Unique coffee flavors are hot

All types of coffee drinks are popular, with consumers especially interested in unique flavors and specialty brews, according to Chad White, food service category manager for York, Pennsylvania-based Rutter’s.

In particular, consumers are seeking unique flavors and flavor combos in coffee. “This is [a trend] c-stores have historically been great at leveraging for coffee beverages,” said Claire Conaghan, associate director of publications for foodservice research and consulting firm Datassential, citing QuickChek’s blueberry cobbler coffee flavor as examples.

TXB has realized a double-digit sales increase in hot beverages in 2023, according to Smartt. Its “very robust” coffee program includes dispensed frozen coffee, nitro coffee and a wide bean-to-cup coffee assortment, along with Texas favorite Southern Pecan. The Southern Pecan flavor is so popular, TXB also sells it in private label K-cups and ground coffee for at-home use.  

Similarly, Marcy, New York-based Clifford Fuel has fueled coffee success by partnering with local company Utica Coffee Roasting Company on rotating seasonal flavors.

“We continuously keep the program fresh using their coffee,” said Derek Thurston, director of foodservice operations at Clifford Fuel and Cliff’s Local Market. “It’s very different than what others are doing for premium coffee.”

One popular coffee flavor for the company is Half Moon, based on black-and-white cookies made by Utica-based Hemstrought’s Bakeries.

GetGo Cafe + Market, the c-store chain owned by Pittsburgh-based grocer Giant Eagle, completed a companywide coffee program upgrade earlier this year.  As part of the upgrade, GetGo rolled out cold brew and nitrogen-infused coffee drinks to its menu after seeing “strong consumer demand” for them, according to Marion Clarke, the category manager who headed up the revamp.

While made-to-order drinks are trending, providing them “presents a lot of challenges from labor to menu development,” said Bryan Street, manager of deli at Love’s Travel Stops and Country Stores, based in Oklahoma City. As a result, Love’s bean-to-cup program “continues to be an efficient option that maximizes labor and profit while providing a good experience for customers.”

Cold coffee options are also seeing more growth, according to Street.

Energy provides a shot to many beverages

From hot coffee to cold teas, canned energy drinks and more, c-store customers are gravitating towards innovative energy beverages.

Overall energy drink sales surged 13.6% for the four weeks ending July 29, according to Goldman Sachs’ Americas Beverages report, while volume increased 4% over the same span. Additionally, Circana’s top 10 “c-store pacesetters,” included in the research firm’s New Product Pacesetters 2022 report released in June, features several energy brands, including: Electrolit, Red Bull Green Edition, Mountain Dew Energy, Celsius Vibe and Monster Reserve.

This trend filters into c-stores’ hot and cold dispensed beverages as well. Thurston said Cliff’s Local Market’s “Wake the Hell Up” highly caffeinated coffee is one of its top-selling coffee varieties.

Energy infusions have also jumped into Cliff’s frozen non-carbonated beverage offerings with “Frazzle Energy”, its energy-infused slushy that was introduced in four stores. The drink is performing “very well,” Thurston noted.

This summer, QuickChek launched a limited-time-only, zero-sugar frozen energy drink made with Prime Energy as part of its summer menu revamp.

While it’s generally associated with coffee, “nitro” continues to be a growing trend, Street added, noting that it is expanding into lemonade and tea.

Finally, white coffee has the “highest potential” for future success in the dispensed category, based on its “high caffeine content, the way it lends itself to being an afternoon alternative to traditional darker-colored coffee blends, and the trajectory of energy drinks,” said Jessica Williams, founder and CEO of c-store foodservice consultancy Food Forward Thinking LLC. "I think, marketed as a high-energy iced beverage with minimal sweeteners, it could be a go-to afternoon pick-me-up.”

Flavored waters, boba teas, mocktails, oh my

This year, foodservice establishments and c-stores have tested the waters with boba teas and other non-alcoholic drinks with texture, as well as flavored and functional waters, Conaghan noted. Texture is hot, and in addition to popping pearls, some fast casual coffee brands are starting to utilize jellies as well, Conaghan noticed.

“With Jack in the Box introducing … milk tea, vanilla shakes, and iced coffee with boba, it is a good time to hop on that trend,” Conaghan said.

Interest in flavored and functional waters “continues to grow and thus far is underleveraged in fountain machines,” Conaghan said.

Fruit-infused waters and innovative mocktails or refresher-style beverages are gaining traction, White agreed. “We [at Rutter’s] are actively exploring these trends and working on introducing refreshing and enticing beverage options to satisfy our customers' thirst,” White said.

Healthier beverages are on the way

In addition to coffee and energy drinks, TXB customers are looking for more flavored teas, according to Smartt. As a result, the company recently expanded its fresh-brewed teas to include raspberry, papaya, green tea, mango black tea and raspberry black tea.

Looking ahead, TXB is considering a variety of “better-for-you” beverage options that will include healthier ingredients, functional drinks, and dietary beverages, according to Smartt.

“Drinks that are non-GMO, organic, pure sugar cane versus corn syrup, made to order drinks that focus on hydration, refreshers, flavored lemonades, functional/dietary beverages (energy, vitamins, sugar-free), and customization are being tested and road mapped for 2023 to 2024,” Smartt said.