The beverage industry shows no sign of slowing down. Here are three companies making an impact.
Beverages continue to nudge their way onto more restaurant menus, whether it’s creative cocktails and their newer nonalcoholic counterparts or drinks that used to signal the start/end of the day (looking at you, coffee and tea). Beverages have expanded to the point where they can successfully stand on their own — and smart hospitality industry folks have taken notice.
Here, we spotlight two beverage-focused chains experiencing major growth as well as a long-established fast-food chain that’s finding success with its in-restaurant drink concept.
Gong Cha North America
Photo by Angela RowlingsWhile boba or bubble tea — that brightly hued tea-based beverage often accessorized with chewy tapioca pearls — isn’t new in the United States, it has seen growth outside of locations previously limited to Asian markets across the country. Gong cha, which was founded in 2006 in Kaohsiung City, Taiwan, has quickly established itself as one of the leaders in this unique category. Sourcing premium whole-leaf teas from top Asian estates that the company then manages the full production process of, from leaf selection and cultivation through drying and fermentation, Gong cha stands behind its name, which in Chinese references the act of offering the best tea to the emperor.
“Gong cha is in its most ambitious Americas expansion phase yet,” says Geoff Henry, president of Gong cha Americas. “We are accelerating growth west of the Rockies, doubling down on California to scale from 27 to 200 locations, expanding our footprint in Arizona and across the Pacific Northwest, and continuing to grow in Puerto Rico and Latin America.” The company’s development plans also call for adding units in nontraditional locations like college campuses, stadiums, airports and resorts, including a new location at Atlantis Paradise Island in the Bahamas. Gong cha’s plans call for the chain to surpass 500 U.S. stores by 2028.
“The role of technology is increasingly important to our strategy,” says Henry. Self-serve kiosks, data-driven operational platforms and beverage automation are helping franchisees boost production and reduce waste. Efficient footprints along with low buildout costs and high throughput supported by a fully integrated supply chain ensure consistency across nearly 2,200 global locations.
Consistency is also established via set standards, including the brewing of small batches of whole-leaf teas fresh throughout the day adhering to precise standards, including water temperatures and steeping times specific to each tea variety.
While Gong cha’s menu is extensive, ranging from milk teas and a slush series to coffee and tea lattes, to say nothing of the add-ons (think coconut jelly, Oreo crumbs and basil seeds), each item must be operationally sound before it hits the menu. “It needs to be simple for franchisees to execute consistently, scalable across markets and aligned with our existing ingredient system,” says Henry. “If a drink can deliver on quality, relevance and operational ease, then it earns a place on the menu.”
One of Gong cha’s signature toppings is its milk foam, which is made with whipped milk, cream and a touch of salty Taiwanese butter, creating a sweet-savory balance. “The result is a layered drinking experience — tea, foam and texture — that guests can enjoy exactly as they like, whether sipped through the foam or stirred in,” says Henry.
Seasonal, limited-time offers and on-trend offerings are also part of Gong cha’s wide appeal. Most recently, the chain partnered with K-pop star Felix from Stray Kids. Such collabs — as well as Gong cha-themed collectibles like keychains, tumblers and pins — are spotlighted via social media posts, extending the brand’s reach beyond beverages. “We work closely with creators who highlight their favorite parts of the brand and speak to their communities in an authentic, organic way,” says Henry. “Our tone stays fun, lighthearted and platform-appropriate, reflecting the expectations of our largely Gen Z and Millennial following.”
HTeaO
Before Heath Nielsen became president of HTeaO, he knew the business offered something special beyond its selection of Southern-style sweet teas and its many varieties via customization. “Before I knew anything about it, I walked in as a customer and was excited and a bit confused at the same time,” he recalls of his first visit. “But then I remember walking around, trying samples, and this couple started talking to me about what they were drinking and then somebody else randomly came up. It was this amazing positive experience over iced tea.”
That combination of high-quality sweet teas and an in-store experience that transcends beverages resonates with consumers. At press time, Nielsen said the company was closing in on 170 stores, adding that 200 stores a was realistic goal for 2026. Franchisees play a key role in the company’s growth. Community engagement at each location is vital to the brand and its success, Nielsen adds. Leaning into its Southern roots, the chain plays country music in its stores.
Customization via self-serve is crucial in its popularity as well. “Being able to come in and customize your beverage with 20-plus different teas definitely hits a great sweet spot — pun intended — where people can come in and create their personal beverage,” says Nielsen.
HTeaO has streamlined the size of its locations, opting for 1,500 square feet as opposed to the 1,900 square feet of earlier stores. “It allows us to fit on lot sizes that are smaller, lowers construction costs and makes for an easier operation as well,” says Nielsen.
High-end equipment is also part of the success formula, including a sophisticated reverse-osmosis water-filtration system. “It’s the secret sauce to our tea, and we mandate that system in all the stores,” Nielsen says. Not surprisingly, ice isn’t an afterthought at HTeaO. “Good ice makes all the difference,” he adds. It is considered a point of differentiation for HTeaO, which offers both cubed and pellet ice.
Initially, HTeaO’s lineup was focused on traditional favorites like Georgia peach, strawberry and mint, but since launching in 2018, the company has introduced other flavors based on customer and franchisee feedback as well as regional and national trends. Coconut and watermelon have become top sellers.
Aforementioned collabs, including one with Poppi sodas featuring a dirty cherry soda, are another way HTeaO keeps it fresh and exciting for customers. Carbonation was introduced into some of its beverages with a line of Refreshers. Hot honey, pineapple, Popsicles and functional add-ons like protein are all on HTeaO’s radar. Early 2026 will see the debut of matcha beverages. “It took us time to find the right combination of flavor and quality that we wanted for our matcha,” says Nielsen.
Recognizing the demand for coffee and other hot beverages, HTeaO partnered with Free Rein Coffee Company, a family-owned company based in Texas, a few years ago. Like its teas, coffee drinks come in a variety of flavors.
“What’s fun with tea is it goes very well with a lot of different things,” says Nielsen. He cites a flavored lip balm as an example the company has produced in the past. “While there are fun things we could do, we are mindful of ones that have a heavy labor lift as protecting that simplicity and ease of service at the franchise level is super important to us.”
Taco Bell’s Live Más Café
While Taco Bell might not be the first place you think of when it comes to beverage innovation, the fast-food chain hopes to change that with its Live Más Café program. The innovative concept launched November 2024 in a franchise operation in Chula Vista, Calif. Throughout 2025, Taco Bell expanded the concept to 30 restaurants across Southern California and Texas with more growth on the horizon in 2026.
“Early results show that Live Más Café is a great step in advancing Taco Bell’s ambitions to reach $5 billion in annual drink sales by 2030,” according to a 2025 Taco Bell release.
The Live Más Café concept reflects Taco Bell’s long-term commitment to drinks as a growth engine. The cafes offer more than 20 handcrafted beverages, including specialty coffees, Refrescas and Churro Chillers, prepared by Bellristas, who are a key part of creating an elevated in-restaurant experience. The Churro Chillers, layered top and bottom with churro crumbles, have emerged as fan favorites, particularly the Mexican Chocolate Churro Chiller.
“The beverage lineup is continuously shaped by consumer insights and market trends, brought to life by our Food Innovation Team,” says a spokesperson. “As Gen Z looks for drinks that feel elevated yet accessible, the team is intentionally crafting beverages designed to match any mood, meal or moment.”
Additionally, Live Más Café menus feature a rotating Bellrista Favorites section, which showcases unique, limited-time beverages. Recent offerings have included a Frozen Mexican Hot Cocoa and a Dirty Mountain Dew Baja Blast Freeze. Like its food menu, Taco Bell leans into bold flavors and unexpected formats, showing that its beverages can be as iconic as its food.
To create the Live Más Café locations, existing Taco Bell restaurants are transformed with updated, modern interiors and open-kitchen layouts designed to enhance the guest experience. Dedicated beverage stations and open preparation areas allow guests to watch Bellristas handcraft drinks in real time.
The concept found inspiration in creating a little “treat moment” for customers — a small, feel-good indulgence that fits into any time of the day, as well as a growing love of premium beverages, especially among Gen Z consumers. Taco Bell’s spokesperson says, “Beverages are no longer just a meal add-on; they are a moment people look forward to.”
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