Diners Choose Tap Water Over Other Beverages

Restaurant beverage sales have decreased 6% over the past five years as more and more diners opt to order tap water over their favorite drink, according to a new report from the NPD Group.

According to "Beverages at Foodservice: Satisfying Our Thirst for Beverages," tap water servings have increased by 2.8 billion servings since 2006 due in part to free refills and rising costs of soft drinks and other non-growth beverages. Tap water servings currently represent 10% of the 50 billion beverage servings ordered at restaurants, according to NPD’s CREST® service, which continually tracks consumer use of restaurants.

The decline in beverage orders at restaurants is driven by the largest categories—carbonated soft drinks and brewed coffee—which represent 49% of all beverage servings. Beverages experiencing growth include iced tea, smoothies, iced/frozen/slushy drinks, and specialty coffee drinks.

“Although the economy and high unemployment are factors in tap water’s upswing and beverage servings declines, some beverages, like carbonated soft drinks were declining prior to the recession," said Bonnie Riggs, NPD restaurant industry analyst and author of the report. “A key learning from this report is that much of the declines in beverage servings are tied to the price/value relationship the consumer perceives."