When Dee Post of Dallas takes her twin granddaughters for a weekend outing, she typically stops at a convenience store before the day is over and treats them to a frozen slushy-style drink.

“I get a small blueberry and drink right along with them,” Post said. “It reminds me of my summers growing up when my friends and I rode our bikes to 7-Eleven. And it turns my tongue blue, which the girls think is hysterical.”

Both popular and nostalgic, frozen dispensed beverages accounted for 5.5% of foodservice sales in 2022, the smallest foodservice category, and 1.60% of in-store sales. Frozen dispensed sales and gross profit improved over 2021, according to Jayme Gough, research manager at NACS.

“Frozen dispensed sales registered $3,977 per store, per month in 2022, 11.3% higher year over year,” she said. “Gross profit rose 5.6% in 2022 to $2,525 on a per store, per month basis. Finally, the gross margin percentage for frozen dispensed beverages experienced the largest decline among foodservice categories, falling 3.44 points in 2022 to 63.50%.”

Traditional slushy drinks remain the category’s mainstay, but the frozen dispensed menu has grown to include milkshakes, smoothies and blended iced coffee. 

Keep ’Em Coming Back

7-Eleven introduced the Slurpee in 1966, and the retailer distributes millions of free frozen drinks on the chain’s designated birthday (July 11) each year. To keep Slurpee fans returning, 7-Eleven frequently offers new flavors.

“Our customers tell us that flavor is the number one factor when deciding which Slurpee to purchase,” said Ben Boulden, director of proprietary beverages at 7-Eleven. “And they look to us to deliver unique and innovative products. We love blending our beloved proprietary beverages with popular national brands. For example, this summer we’re introducing Fanta Dragon Fruit Zero Slurpee. It’s perfect for those who prefer a sugar-free option but also want to satisfy their sweet tooth.”

Two additional new flavors are Summertime Citrus and Sprite Lymonade Legacy.

“Slurpee is more than a frozen drink,” said Boulden. “It’s a lifestyle that creates moments and memories for our customers.”

Meanwhile, Kum & Go has teamed with ICEE to bring back colorful Red, White and Boom for July 4, “since it was such a hit with customers last year,” said Marco Calderon, senior category manager of beverage at Kum & Go. “We’ll also offer Llama-nade, a whimsical flavor name. It’s a traditional flavor—lemonade—but with a fun twist.”   

Frozen drinks have traditionally been considered kid treats, but many adults indulge in them as well. “Our goal is to offer options for all—both kids and adults,” Calderon said. “We’ve expanded our frozen beverage offerings over the last year. Before, we primarily served traditional soda flavors, and we’ve since expanded to fruit-forward flavors like cherry, blue raspberry and tropical fusion (mango, pineapple, orange). We’ve seen a huge increase in the amount of frozen dispensed syrup that we’re moving through.” 

Tweaking Drinking

Slushy shoppers love creating their own personal beverages by combining colors and flavors, according to Chad White, food service category manager at Rutter’s.

“Mixology and customization are big in this category. People fill up a cup with half of one flavor and then another, and add a flavor shot,” he said. “Four flavor shots can be dispensed from our machines—lemon, lime, cherry and vanilla.”

Sunny Sky Products is one manufacturer producing flavor shots to enhance both fountain and frozen beverages. 

“We offer flavor shots in frozen format for the FBD multi-flavor unit,” said Isabel Atherton, director of marketing for Sunny Sky. “They’re available in flavors like caramel, French vanilla, hazelnut, mocha, blueberry and mango, and they provide customers endless possibilities for customizing their frozen beverage experience.” 

The company also offers shots with healthy supplements, such as ginseng, ginkgo biloba and vitamin C. To help consumers design their drinks, Sunny Sky produces recipe cards and supporting POS materials, including danglers, to attract attention at the fountain.

Energy Booster

Another supplier delivering energy at the fountain is Frazil, a division of Freezing Point of Salt Lake City, Utah. Last year, the company launched a Frazil energy slushy with caffeine, ginseng, taurine and B vitamins that’s available in four flavors: orange cream, smashberry, pina colada and lemonade. Attendees at the 2022 NACS Show saw it displayed among the Top 10 Cool New Products.

“It’s doing extremely well,” said Kyle Freebairn, CEO of Freezing Point. “Energy drinks in the c-store space have been on fire for the last few years, and there are no signs of that slowing down.”

Another recent Frazil intro is Café Tango, which comes in French vanilla and mocha and targets the discerning adult. “We’re obsessed with our flavor profile,” he said. “It’s a premium product and costs a bit more, but consumers are consistently willing to pay it.”

Convenience operators receive Frazil beverage equipment at no cost. “We’ve developed technology that can track the machine through a cellular connection,” Freebairn said. “Our team in Salt Lake monitors the machines in real time. If there’s an issue with the equipment, they open a service ticket and arrange for a service call. Retailers receive a Frazil app that allows them to track store sales, flavor rotation and service from their mobile phones. It’s a turnkey program.” 

Adults-Only Slushy

The Fine Dining Restaurant Group of Jackson, Wyoming, owns Bodega, a one-stop shop for locals and tourists at the base of Teton Village. Customers buy “sloshie” drinks in every type of weather. The 16-ounce sloshies are made from fresh juices and ice, plus a nip of vodka, gin or rum.

“We started selling sloshies when we opened in 2012,” said Neil Loomis, vice president of beverage for Fine Dining. “Now about five places offer them. Imitation is the sincerest form of flattery.”

Teton Village permits pedestrians to stroll and sip alcoholic drinks in public, and Bodega sells about 800 16-ounce sloshies on a busy day.

In areas where the law permits, Rutter’s stores offer a similar treat dubbed a “spiked slushy” in 20-ounce cups or a 64- or 128-ounce party bag. GetGo outlets sell frozen malt beverages made with premium brands, such as Seagram’s and Smirnoff. 7-Eleven doesn’t sell spiked drinks, but the chain’s website provides recipes for customers who want to make their own “hard Slurpee.”

The Slushy Summary

According to Adam Holler, product manager for cold beverages at equipment maker BUNN, the most important thing about a successful frozen drink program is not flavor options or a shot of booze. It’s faithfully cleaning the dispenser every day. 

“Make sure to disassemble the components and wash them. And don’t try to extend the life of the remaining product by adding more product to it,” he said. “The better and more frequently the machine is cleaned, the better experience for your consumers and for you as an operator.”

Frozen drinks have long been an important part of the c-store culture, said Melinda Pritchett, director of category strategy and innovation at The Coca-Cola Company. “They will continue to drive consumer interest, especially beverages with sensorial benefits, like hot and cold combinations using frozen beverages in combination with spicy flavor shots or syrups,” she said.

And expect to see dispensers evolve, incorporating a variety of exciting technology, such as remote Wi-Fi monitoring and new opportunities for customization. 

“From smaller in-store footprints to flavor shots, equipment is changing to meet product innovation and the needs of c-store operators, as consumers continue to seek out unique and novel flavors they can’t get elsewhere,” she said.