How Fast Casual is Rewriting the Restaurant Wine and Beer List

Last year, Starbucks rolled out a wine and beer menu to locations nationwide. In doing so, the brand aimed to transition the bustling coffee shops into a more relaxed setting—one filled with evening patrons enjoying glasses of wine, savory tapas and seasonal specials. Here, baristas turn into bartenders, offering up recommendations of craft beers, a robust Malbec or bubbly Prosecco.

With the addition of alcohol, Starbucks introduced a new way to extend their sales beyond morning and afternoon. They want the same customers who stop in for their morning coffee or afternoon pick-me-up to also loop back to Starbucks at dusk for an evening hangout or pre-dinner drink spot.

And it’s not just Starbucks that’s trying to capitalize on this market. Chipotle has margaritas and Mexican beers on their menu and recently introduced a Happy Hour in some locations to get more customers in the door. For example, Chicago Chipotle locations offer half off alcoholic drinks on Thursday evenings. Another major brand, Shake Shack, has long been serving up craft beers and red or white wine, which are exclusively made for the brand and varies based on each location. And fast-casual pizza chain Your Pie emphasizes a regional craft beer selection that showcases local breweries. The brand offers beer from large craft breweries like Sierra Nevada, Dogfish Head and Bell’s to locally-selected wines from wineries in town. Ken Caldwell, Vice President of Development for Your Pie, says that this unique offering is what separates the brand from other pizza chains.

“We think it’s very important to give franchisees flexibility in their beer selection. It adds that local flavor and forms a connection and relationship with the community, and I think that’s very special” says Caldwell. 

Restaurants of all sizes realize that more patrons than in previous decades enjoy a glass of wine or beer with their meal, even if it’s a quick one. Adding a simple cocktail, some craft beer and a wine selection can help elevate the dining experience and further differentiates fast-casual brands from fast food. It also reinforces the commitment to serving quality food in a relaxed setting at a price that doesn’t break the bank. Darren Tristano, President of Technomic, says this combination is a winning recipe for younger generations. It’s not only encouraging them to visit a restaurant, but giving them a reason to stay for a drink or two as well.

“Given the more comfortable interiors of fast casual, serving guests in the dinner daypart supports overall growth. It provides a casual dining atmosphere and added benefit of a lower price point without tips for patrons. This is very attractive to GenZ and the Millennial generation,” says Tristano.

Tristano says this is also prime time for companies to introduce alcohol into restaurants as the same consumers that they’ve targeted for decades are evolving.

“Fast casual brands are growing up as their customers age and push toward new life stages. Fast casual’s growth over the past two decades was in excess of 10 percent annually. During that time, GenZ consumers - those born after the internet in 1993 - have aged along with them and have become loyal patrons,” says Tristano.

But despite the popularity of alcohol in a fast casual setting, don’t expect fast-food restaurants to catch on to this trend anytime soon. With giants like McDonald’s opting out, Taco Bell is the anomaly in the fast food market and has started serving beer, wine and “mixed alcohol freezes” in restaurants nationwide. The first location to serve alcohol was actually a Wicker Park Taco Bell in Chicago. But, adding alcohol is only one part of the combined effort to elevate the dining experience and redefine the image of the popular Mexican chain to make it resemble more of a fast casual experience. The company is currently testing out four different restaurant models in California– all designs include open kitchens, modern décor, rustic wood and elaborate lighting fixtures.

“Although quick service restaurants are beginning to add beer and wine, it is common belief that it is not within their DNA to offer adult beverages and very few locations will have the opportunity to get liquor licenses and make it pay off. Fast casual, however, has been very strong in the breakfast and lunch dayparts with heavier dine-in consumption.About 50 percent of their sales come from dining in, versus 30 percent for quick service,” says Tristano.

As more and more fast casual restaurants carry adult beverages, Tristano emphasizes that this trend is definitely here to stay.

“In general, expect to see more fast casual brands offer adult beverages and event alcohol-infused desserts that support dinner daypart growth and extending the opportunity to serve existing guests more frequently over more occasions,” says Tristano.