As QSR and fast casual giants race to introduce new boba-teas, cold brew options, flavored lemonades and fruit-infused smoothies, industry analysts say they are racing to capture market share in this fast growing segment of the restaurant industry.  With consumers now conditioned to expect variety in beverage categories at restaurants, beverage-tech startup Botrista is helping small food businesses jump onto the specialty drinks trend and empowering them with data to inform menu decisions and innovations.

Innovation is key to success in the beverage and foodservice industry and it usually requires deep pockets. QSR leaders such as McDonald’s and PepsiCo are spending hundreds of millions of dollars on drink-centric concepts and beverage research.

The boba craze is upon us and the market is expected to reach $3.6 billion by 2028.  As evidence of the craze, a 2021 CLSA consumer survey astonishingly found 94% of individuals aged between 20 and 29 had bought boba tea in the preceding three months.  The issue for smaller restaurants and foodservice operations, however, is that executing a boba menu in their stores adds complexity and cost, as well as requiring research and development budgets they do not have. 

Botrista, a leader in the beverage-tech space, is looking to change this.

“Smaller businesses don’t have the capital or the labor resources to support their own specialty drink program”, Botrista CEO Sean Hsu said. “Innovation is expensive — that’s where we come in”.  

The San Francisco-based company is crafting a data-informed strategy to democratize access to cutting-edge beverage technology. This can help mid-sized foodservice chains and standalone locations innovate their beverage offerings and menus. 

“We help restaurants with modest innovation budgets and one or two culinary personnel to spool up something quickly”, Hsu said. “Our solution levels the playing field for mid-sized chains like Yoshinoya, Pokeworks, etc. Smaller restaurant chains deserve access to complete beverage solutions that match the quality, diversity and efficiency of the industry giants.” 

A comprehensive beverage ecosystem

Botrista’s beverage program helps restaurant owners and operators innovate and diversify their menus through the data captured by its technology platform. At the core of this platform is CloudBar, a sophisticated data-backed intelligence offering which guides decisions on beverages and flavors. 

"Our CloudBar data system tailors menus to suit various cuisines and restaurant types, leveraging sales data to optimize beverage suggestions,” said Dan Mosher, Botrista’s Chief Operating Officer. 

Mosher added that the CloudBar delivers daily sales reports, so that clients “remain abreast of market trends and can make informed decisions for menu development and revenue growth."

The insights gleaned from Botrista’s program have proven invaluable, prompting some companies to adjust their hours of operation and staffing decisions to accommodate the shifting trends in consumer behavior. For example, with 20% to 40% of Botrista’s drinks sold during off-peak hours, typically from around 1:30 p.m. to 4:30 p.m., businesses are recognizing the need to adapt. Thanks to the data provided, some companies have  extended their hours of operation to include a new daypart, ensuring they remain competitive and meet the evolving needs of their guests. This proactive approach, informed by Botrista’s comprehensive ecosystem, empowers small businesses to not only make informed decisions but also take decisive action to stay ahead in the market

The CloudBar is integrated into the Botrista Pro, an automated beverage machine, which transforms a 5 square feet of space into a dynamic dispensing station. This compact yet powerful setup operates as a revenue-driving channel, crafting more than 100 drinks per hour.

With the Pro, restaurant owners and managers can introduce new and seasonal smoothies, aromatic teas, boba milk teas, cold brews and functional lemonades to appeal to their customers’ discerning palates. The integrated CloudBar system can then help foodservice operators make informed decisions on beverage menu changes and additions based on comprehensive, data-backed intelligence. 

“By using our database and historical menu and sales data, Botrista can help our partners with menu optimization suggestions, predicting sales and profitability, and providing a unique set of best practices," said Mosher.

The vast CloudBar recipe database helps owners match their brand's unique cuisine, demographic fit, and service style. Taco restaurants can complement their savory offerings with hibiscus agua fresca. Bakeries can double down on brightness with custom cold brews. Asian-cuisine restaurants can capitalize on the boba craze. 

“We’re delivering the flavors of the world at your fingertips, and thanks to our CloudBar system, we’re able to guide your menu development using incredibly informed, data-backed confidence,” Hsu said.

Surviving and thriving among giants

This is how small chains can not only survive but flourish amidst beverage and food industry giants. For instance, after integrating Botrista’s beverage ecosystem, a cherished sandwich chain not only experienced a remarkable 59% surge in drink sales but also witnessed a notable increase in foot traffic

Another example comes from a Middle Eastern food chain that began as a New York City food cart and has since expanded to over 95 franchised locations worldwide. Seeking to enhance its beverage program, the chain aimed for an expansion that was both exciting and seamless to implement across its diverse locations. Introducing Botrista’s beverage program proved instrumental. The chain experienced an 18% growth in average check size, coupled with an increase in beverage orders alongside food orders, following the implementation of Botrista’s program.

And this is no easy feat in light of what beverage and food industry leaders are doing in the space. 

In 2022 alone, PepsiCo spent $771 million on beverage research, development and implementation. McDonald’s is spending big to open up 10 CosMc’s this year, a new small-format restaurant that offers beverages and treats. And on the coffee front, research and development for more resistant coffee crops is projected to cost $452 million a year, according to World Coffee Research, a research and development nonprofit that counts Starbucks as one of its members. Starbucks, in fact, has invested “billions” of dollars in its Triple Shot Reinvention strategy, announced in late 2023. The strategy includes “further product innovation” in its core menu.  

The development of a beverage, from formulation to manufacturing and packing, can cost at least $300,000, according to beverage formulation and manufacturing company MetaBrand. As taste buds become more sophisticated and discerning, companies are investing in the end result.

Even more fast dining key players like Jack in the Box, Taco Bell, 7 Brew, Dutch Bros, Wendy’s and Domino’s Pizza have been experimenting with boba teas, vibrant energy drinks and flavored lemonades. This shift highlights the evolving landscape of consumer preferences and trends.

Botrista’s solutions don't just expand options and revenues — they supply small and mid-sized restaurants with an advanced ecosystem that offers easy drink customization and creation as well as informed strategy backed by real-time data. 

For small foodservice outfits, this can help owners to spotlight what makes their space stand apart and elevate guest experiences that nurture loyalty and profitability. 

“If you’ve got a few square feet to spare, you’ve got a brand new revenue driver”, Hsu said.