Swig Florida Expansion Signals Beverage Franchise Growth

Drinks are having a moment in franchising. Swig, the Utah-based dirty soda franchise, signed a 25-unit deal to expand in South Florida. The deal is led by experienced multi-unit franchisees James Laskaris, Spiro Laskaris and Stephen Attard, and will be in markets such as Port St. Lucie, Palm Beach and Stuart. The first restaurant is expected to open by the end of the year, Fast Casual reported.

"The product stands out, the model is simple to scale and the brand's marketing and energy really resonate with a younger, highly engaged customer base," Laskaris said in a press release.

Since starting in 2010, Swig has grown beyond Utah to over 150 locations in 16 states. The menu includes its signature sodas, as well as water-based “Refreshers” and energy drink “Revivers.”

The news comes at the same time that several fast-food giants announced their own drink line expansions, with Dunkin’ even coming out with its own take on the dirty sodas, in addition to frozen coffees. Axios reported that McDonald’s will introduce six specialty drinks on May 6 including refreshers with boba and crafted sodas, while Wendy's launched a line of watermelon drinks on April 27 with options that include lemonade, a sparkling energy beverage and Sprite.

The beverage trend may not just be to keep up with innovative brands like Swig, but to offset rising food costs, like beef. Drinks have a higher margin that can be discounted to drive more people into stores, retail analyst Bruce Winder told Axios. Winder added that the drink lineups can be used to bring customers into stores who then might also buy food.

Specialty beverages may be here to stay with the market expected to increase at a compounded annual growth rate of 3.7% from 2023 to 2028 and reach nearly $248 billion in sales. This gives franchisors the opportunity to capitalize and build high-margin menu strategies that drive traffic into stores.