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Restaurants Try to Slow Rising Orders of Tap Water

“Just water, please.”

It seems more consumers are making that request when they go out to eat these days.

Orders of tap water at U.S. restaurants are up 2.8 billion servings since 2006, making it one of the fastest-growing beverage choices, said Bonnie Riggs, a restaurant-industry analyst with the NPD Group, a food-service research firm.

Meanwhile, orders of revenue-generating beverages such as soft drinks and coffee have declined by roughly the same number, 2.7 billion, during the same time period.

That is a 6?percent drop.

 While the trend may have the health-care community cheering — particularly given concerns about rising obesity — it’s not such good news for restaurant operators, who have faced declining sales and rising food and production costs during and since the recent recession.

 “As the costs of food and gas have risen, they have eaten into the amount of income available for spending on ‘luxuries’ like restaurant meals,” Sara Senatore, a senior analyst with Bernstein Research in New York, said in a recent research note.

Declining drink sales “cut into a restaurant’s bottom line, there’s no doubt about that,” said Robert Himes, president of the Central Ohio Restaurant Association.

That has prompted restaurant operators to look for ways to steer people back to the beverage menu.

 One way they’ve done so is by offering flavored teas and lemonades and iced coffee drinks to provide consumers with more choices, said Denny Lynch, spokesman for the Wendy’s Co.

The Dublin-based restaurant chain, which is the nation’s No.?3 hamburger chain, introduced its “all-natural” lemonade and wild berry lemonade this summer, part of its effort to meet consumers’ changing tastes, he said.

“The mindset is to respond and adapt to what consumers say they want,” Lynch said. “Drinks are a major component of the meal that completes the meal and are one of the main reasons that combos (meals) are so popular.”

To that end, Wendy’s also is testing the Freestyle Coca-Cola machine in its new prototype stores, which include two locations in Columbus, at 5505 W. Broad St. and 739 Bethel Rd.

The machine, which allows consumers to create more than 100 drink combinations and offers water, has been a big draw for consumers, Lynch said.

“Clearly, people talk about it, but that’s just one approach to attract more consumer attention,” he said. “Consumers are looking for choices up and down the menu line. They want options in all food categories. All restaurants sensed a long time ago that consumers were looking for more choices than carbonated drinks.”

Riggs said that while choice is important to consumers, so is cost. Water is generally free.

 Kimberly McConville, executive director of the Ohio Soft Drink Association, said in an email: “Times are tough, and consumers are watching their pennies.

“Luckily, our industry offers a range of beverages at all price points. It all comes down to choice, something our industry supports.”

Restaurant operators must adapt to changing consumer preferences, said Elizabeth Lessner, president of Betty’s Family of Restaurants.

Lessner, who operates five restaurants including the Jury Room, 22 E. Mound St., said she has noticed the increase in tap-water orders, especially at lunch, when half to two-thirds of customers are ordering water.

“So you have to find other alternatives, such as teas and energy drinks,” Lessner said.

For her restaurants, that has meant offering more low- or no-calorie options, as well as more healthful fare.

“That’s been very important for many patrons,” she said. “People really want to know what’s in their food and drinks.

“People are more interested in local sourcing for foods and drinks. They want to know if there are dangerous chemicals used to make their drinks and want healthier options. I’m all for it.”

 

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