Paul Volk, Director of Operations at Triple O's, is seen in Surrey, B.C. on Friday, July 26, 2024. (The Canadian Press)
As summer heats up, many people reach for cold treats to cool off, and Paul Volk, director of operations for Triple O's, believes their creamy milkshakes are perfect for beating the heat. However, these shakes are just as popular during winter. Triple O’s, which is expanding into Alberta and Ontario, has noticed that their cold beverages attract customers throughout the year.
Volk explains that customer preferences for cold drinks seem less affected by the season. "We have so many options now that the time of year doesn’t matter as much," he says. This trend isn't unique to Triple O's. Fast-food and convenience store brands worldwide are experiencing a boom in demand for cold drinks like smoothies, slushies, iced coffee, and carbonated beverages.
Recent data shows that while hot coffee remains a popular choice, its demand at quick-service restaurants has dipped between March 2022 and 2023. In contrast, cold beverages like iced and frozen coffee, milkshakes, and smoothies have seen increased popularity. Tim Hortons, for example, reported a 12% rise in cold beverage sales in the first quarter of 2024, continuing a trend from a 19% increase in the previous quarter. Axel Schwan, president of Tim Hortons' Canadian operations, highlights the growing role of cold drinks in their future growth strategy.
Starbucks Canada has also expanded its range of cold drinks, introducing new spicy fruit drinks, lemonades, and berry beverages. Cold beverages now make up 70% of their offerings, according to Danilo Gargiulo, a senior research analyst at Bernstein. He attributes this popularity to their novelty, customization options, and appeal as a gateway to different drink experiences.
The variety of cold drinks available is vast. Coffee shops offer cold brews and frappuccinos, convenience stores feature slushies, and burger chains provide milkshakes and fizzy drinks. Smoothie and juice bars add to the array, allowing customers to mix flavours and customize their drinks with syrups and toppings. Starbucks Canada, for instance, now boasts 170,000 drink combinations, a huge increase from their limited options in 1989.
Jo-Ann McArthur, president of Nourish Food Marketing, notes that younger consumers have shifted towards iced drinks year-round. The visual appeal of clear cups and vibrant beverages makes them popular on social media, which contributes to their ongoing demand. Trey Powell from Alimentation Couche-Tard observes that many cold drinks now offer "functional benefits," like hydration and energy, which further boosts their appeal.
Triple O's has embraced this trend by expanding its cold beverage menu. They now offer blended coffee frappes and cold brews, with a range of flavours including caramel, mocha, and vanilla. Popular seasonal shakes, like caramel pumpkin pie and candy cane wafer flavours, are expected to return this fall and winter.
The cold beverage trend shows no signs of slowing down, according to Volk. "There’s definitely no end in sight," he says. As consumer demand continues to evolve, Triple O’s and other brands are planning more innovations in cold drinks for the future.
