Operators Amp Up Cocktail LTOs Amid Shifting Drinking Habits

Alcoholic beverage LTOs in the second quarter more than doubled from the prior-year period, as casual dining chains increasingly leaned into margaritas and other summer cocktails. 

Datassential’s Launches & Ratings platform captured 102 alcoholic beverage LTOs in the three months through June, marking the category’s highest quarterly total in three years. The increase was heavily concentrated in the casual dining segment, which accounted for 96% of the quarter’s alcoholic beverage launches.  

Some of the quarter’s jump was driven by one-off, seasonal events, with at least 15 offerings pitched in conjunction with either America’s 250 birthday or the World Cup soccer tournament. Among them: a Red, White & Booze Lemonade from Buffalo Wild Wings, an All American Berry Fizz, from Beef O Bradys, and Yellow Card and Red Card margaritas from TGI Fridays. 

Overall, margaritas were one of the most common beverage types, making up nearly a quarter of launches in the previous three months. Flavor pairings leaned tropical and fruit-forward, including Red Robin’s Watermelon Dragon Fruit Margarita, Mellow Mushroom’s Spicy Mango Margarita, and Firebirds Wood Fired Grill’s Pineapple Paradise. 

Mellow Mushroom was the most active single chain in the period, with 12 alcoholic items. Logan’s Roadhouse, meanwhile, introduced three THC-infused cocktails: High Tide, Pineapple Express, and Scarlet Haze, each containing 5 milligrams of hemp-derived THC.

Younger drinkers appear to be the target for many of the new launches. When at a casual bar or pub, Gen Z drinkers are most likely to order mixed drinks (46%) or cocktails like margaritas, martinis, and old fashioneds (42%), according to Datassential’s Gen Z Drinking Habits report. Mixed drinks and cocktails are also the top alcoholic beverage choice for Gen Z while having a casual meal at a restaurant.

The push comes as overall alcohol consumption is softening, particularly away from home. The share of drinking-age adults who consume alcohol at least a few times a year fell to 66% last year from 72% in 2024. Among those who still drink, 39% say they’re doing so away from home less often than a year ago, according to 2025 Datassential’s Alcohol Usage and Shifts report.