Spirited Stock: Benefits of RTDs in the On-Premise

Austin Cocktails Co-Founder Jill Burns, who oversees marketing, packaging, drink development, and batching for the Texas-based cocktail company, believes the ready-to-drink (RTD) cocktail category has evolved significantly. She said many owners and operators are discovering they can actually enhance the offerings at their bars, restaurants, and hospitality businesses.

“By enabling faster service, RTDs allow staff to serve more customers efficiently, ultimately driving higher revenue and boosting tips across the board,” said Burns, who noted RTD cocktails deliver two key benefits that are essential in today’s competitive hospitality landscape – variety and consistency.

“Consumers are looking for high-quality options that are both affordable and reliable, and RTDs provide just that,” shared Burns. “Offering an affordable, consistent cocktail option ensures that every customer receives a great experience, no matter how busy the venue is.”

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Austin Cocktails Co-Founder Jill Burns (right) along with Co-Founder Kelly Gasnik (left). (Photo: Austin Cocktails)

 

“A Reliable Go-To That Tastes the Same Every Time”

Miranda Escalante, director of beverage development and front-of-house operations with Pilot Light Consulting – a North Carolina-based hospitality consulting firm that supports owners and operators – agreed that ease and convenience make RTD products attractive to consumers, who enjoy them at many on-premise hospitality businesses and on their own during their favorite activities. In fact, for consumers, there’s comfort in consistency, she said.

“Once you fall in love with a RTD product or brand, it becomes a reliable go-to that tastes the same every time – unlike a favorite cocktail, which can vary from bar to bar and bartender to bartender,” explained Escalante.

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Pilot Light Consulting's Miranda Escalante. (Photo: Mackenzie Smith Kelley for Pilot Light Consulting)


Consistency, according to Escalante, is the easiest win for a restaurant or bar, and the RTD category guarantees this. “These products also offer a range of diverse flavors and experiences,” she said. “Many popular RTDs highlight health benefits and potential for mental clarity. I view these as ‘experience’ cocktails. Dram, one of my favorite non-alcoholic RTD brands, blends adaptogens, CBD, and herbs into delicious flavors that keep its robust fan base – me included – coming back. Versatility is another advantage – RTDs enhance cocktail programs further when used as a cocktail ingredient or to add a finishing touch.”

Burns pointed out that consumers are increasingly gravitating towards RTD cocktails because they’re affordable, in addition to their quality and convenience in a single package.

“The COVID-19 pandemic, coupled with the current economic climate, has reshaped the way people approach dining and drinking out,” shared Burns. “For many, enjoying a cocktail at a bar or restaurant is becoming more of a luxury than a routine. This is where RTDs, like those from Austin Cocktails, come in.”

 

RTDs – “A Significant Amount of New Choices”

Jason Merz, director of marketing at Gardenista – a green ready-to-serve cocktail line – said the initial, recent popularity for RTD cocktails and mocktails was found amongst a niche consumer group who were seeking calorie and portion control. “As this trend gained traction, broader consumer sets were drawn to the format for the convenience and consistency – as well as a much-needed break from routine offerings – which has fostered the massive growth we’ve seen in recent years,” he explained.

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RTDs can be elevated by serving them in elegant glassware with a garnish. (Photo: Gardenista)


Merz added that this newfound consumer interest in cocktail and mocktail RTDs has brought about a significant amount of new choices, as suppliers rushed to market in order to capture some of the growth. “As a result of this, we’re seeing the demand for spirits-based RTDs outpace malt-based offerings,” he revealed. “These same drivers have now extended into ready-to-serve [RTS] cocktails for consumers looking to pair quality and value alongside convenience and consistency – which is why we’re seeing shelf sets expanding for RTS cocktails across the country.”

Tana Cowin, the founder and CEO of Country Water – North Carolina’s only woman-owned canned wine company – thinks RTD cocktails and RTD wine are seeing major consumer interest for a multitude of reasons, but mobility of the product seems to be one of the biggest growth-drivers. “Being able to grab a drink and take it out for activities without the worry of bottles breaking or bringing mixers and extra ingredients makes things so much more simple and accessible,” she said. “Also, the variety of sizes and varietals in an easy-to-pop can makes canned RTD products a much more desirable option for people who like to try something new and find a new favorite.”

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Tana Cowin, founder and CEO of Country Water. (Photo: Country Water)


Jeffrey Jannarone, a bar and restaurant expert and consultant with Jannarone Consulting in Belamar, N.J., said the rise in popularity of RTD cocktails and “alcopops” has contributed significantly to the overall growth of alcohol consumption in the United States. “These beverages, characterized by their sweet or carbonated nature and resemblance to non-alcoholic drinks, like sodas and fruit juices, have a broad appeal, particularly among younger demographics,” he said. “The vibrant packaging and enticing flavors make them highly attractive, and their marketing strategies, often leveraging social media, further amplify their reach.”

rtds in the on-premise
Jeff Jannarone of Jannarone Consulting. (Photo: Jannarone Consulting)

 

Why Should On-Premise Establishments Consider RTDs?

Burns, of Austin Cocktails, said the bar, restaurant and hospitality industry should consider on-premise RTD cocktails and mocktails for a variety of reasons.

“Savvy restaurant and bar operators are increasingly turning to ready-to-drink cocktails to drive significant revenue and increase tips,” shared Burns. “These versatile products are proving to be especially beneficial for establishments with quick turn times, such as casual restaurants, sports bars, and high-volume spaces that host events, where there may be a lack of skilled labor to staff and stock a full bar.”

Burns said the beauty of RTDs is their ability to streamline operations while maintaining the quality and appeal of craft cocktails. “As we like to say, ‘Line up your cocktails, not your customers,” she said.

Brett Dunne, managing director of Lucas Bols (for the United States and Canada), believes the bar and restaurant industry should consider on-premise RTD cocktails and mocktails because offering these quality, premium options can enhance operational efficiency, as they require less preparation time, allowing bartenders to focus on crafting other cocktails and providing excellent service. Lucas Bols is based in Amsterdam and is considered the world’s first cocktail brand since it was established in 1575.

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 Bols Cocktails' Margarita Azul. (Photo: Lucas Bols)


“RTD cocktails and mocktails can cater to the growing demand for convenience and variety, appealing to consumers who may want something quick yet flavorful,” said Dunne, whose company has numerous ready-to-enjoy cocktails, including some in tubes. “They also enable establishments to provide consistency and quality for their beverage program, as these products are crafted to meet consumer demand relating to specific flavor profiles and cocktail trends. Overall, incorporating RTD offerings can help bars and restaurants diversify their menus, boost sales, and enhance customer satisfaction.”

Brian Love, CEO of San Diego-based Club Kokomo Spirits – said RTDs can expand the offerings at an on-premise. “For example, a whiskey-focused bar can cater to vodka or rum enthusiasts with canned alternatives, freeing bartenders to concentrate on signature cocktails,” said Love, whose brand creates Caribbean-inspired artisanal spirits and RTD cocktails. “This flexibility allows establishments to introduce a new drink category without incurring significant setup costs. Today’s RTDs go beyond basic offerings, featuring sophisticated cocktails in a convenient format, making them a valuable addition to drink menus.”

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Brian Love, CEO of Club Kokomo Spirits. (Photo: Club Kokomo Spirits)

 

Keep an Eye on These Ready-to-Drink Trends

What’s trending with RTD cocktails and mocktails? Burns, of Austin Cocktails, said a lot of brands are embracing quality ingredients, such as real fruit juices and real base spirits, and they’re using less sugar or sugar alternatives, such as monkfruit or agave. “This push stems from the rise of a more health-conscious consumer who still wants to imbibe but wants to know what is going into their body,” she said, noting that her company uses premium ingredients for its canned cocktails.

Dunne, of Lucas Bols, said the industry is seeing a trend toward innovative flavors and ingredients, and RTDs made with quality, premium spirits. “Consumers are gravitating toward unique flavor combinations that include exotic fruits, herbs, and spices,” he said. “Popular ingredients like craft spirits, natural juices, and botanical infusions are becoming more prevalent, elevating the overall quality of RTD offerings.” He also noted that customers are seeking functional ingredients that promote wellness, as well as seasonal or limited-edition flavors that create excitement and encourage trial among consumers.

Merz, of Gardenista, said he’s seeing trends in flavors that resonate with a sophisticated palate – fresh ginger, green herbs, jalapeno, and naturally derived citrus elements that add depth and authenticity. “This shift toward botanical blends and global influences speaks to consumers looking for a crafted cocktail experience,” he said. “Ingredients that emphasize quality, like reduced sugar and premium spirits, make RTS drinks a luxurious yet session-able choice that meets rising demand for elevated, natural flavors.”

In the non alcohol-by-volume (ABD) arena, CBD and THC offerings have become popular, thanks to brands like Untitled Art and Dram, according to Escalante of Pilot Light Consulting.

“These no-ABV RTD cocktails cater to guests seeking an experience without imbibing alcohol,” said Escalante. “Another great example is Kin Euphorics' lineup, which offers an RTD NA [non-alcohol] cocktail ‘for every mood.’ The low-ABV arena features everything from wine spritzes by RAMONA to the Angeleno Spritz, which boasts bitter and botanical flavors that consumers have begun to reach for more and more. Many major liquor brands have taken note of the RTD trend, including Crown Royal, which now offers several delicious and creative flavor options that pack a full-proof punch.

Another trend to watch – which is related to RTD and the next logical evolution – according to Merz of Gardenista – is ready-to-serve (RTS) cocktails. These are pre-mixed cocktails and typically come in bottles.

“There are undeniable advantages for the bar and restaurant industry when making RTS cocktails part of their offering – namely offering a consistent product at a controlled cost with high speed of service,” said Merz. “The adoption of RTD products within the on-premise is evidence of this, and consumer demand continues to back that growth.”

Merz suggested that bars and restaurants feature RTS cocktails prominently on the menu or create tasting flights to allows guests to explore the category as a luxury experience, reinforcing the message that RTS can match or even exceed traditional expectations for quality and taste.

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So, What Type of On-Premise Establishment Works Best for RTD Offerings?

Burns, of Austin Cocktails, said some of the on-premise hospitality establishments that work best for RTD offerings include restaurants with quick turn-around times or limited staff, large restaurants with event spaces, bars that see a rush of customers (for example, near a stadium or sport venue), golf courses, poolside, at casinos, or at outdoor patios, where portability is important.

Escalante, of Pilot Light Consulting, said high-volume bars and restaurants, outdoor hospitality areas, establishments with counter service, coffee shops, and fast-casual concepts can all benefit from RTD offerings for ease of service.

“A major advantage for these high-volume concepts is the reduced need to source multiple ingredients and manage product demand,” revealed Escalante. “For instance, if your preferred vermouth for your house negroni becomes difficult to source or unavailable, you might consider substituting the house cocktail itself with a high-quality RTD, such as the Negroni offered by Tip Top Proper Cocktails.

According to Burns, RTDs offer a way to keep service efficient and fast without sacrificing the guest experience. She said they’re perfect for: happy hour specials, brunch cocktails, bucket programs at casual restaurants and sports bars, catered events (where clients prefer simplified service), and back-of-house solutions for busy kitchens, where staff can serve a pre-mixed mojito or other cocktail by simply pouring and garnishing.

“RTDs from brands like Austin Cocktails – with their higher ABV, natural juices, and a touch of sweetener – deliver consistent, balanced drinks every time,” said Burns. “This approach allows operators to provide complex, premium cocktails without the time and hassle of traditional mixology.”

Dunne, of Lucas Bols, said that in today’s economy, staffing remains a challenge for on-premise operators. Thus, creating a beverage program that incorporates RTDs allows establishments to offer quality cocktails without being reliant on senior bar staff.

“Places that cater to a younger demographic, with high volumes during peak hours – like rooftop bars and beach clubs – can particularly benefit, as these consumers often seek quick, enjoyable experiences,” said Dunne. “Additionally, venues that host events or parties can leverage RTD cocktails and mocktails to streamline service and meet high demand efficiently.”

 

Any There Any Downsides to RTD Cocktails at Bars and Restaurants?

Dunne pointed out that while offering RTD cocktails and mocktails presents many advantages for hospitality operators, there are some considerations to keep in mind.

“One potential downside is the perception that RTD beverages are less authentic or lower quality than made-to-order cocktails,” said Dunne. “To mitigate this, establishments should carefully select high-quality RTD products made, using brands that reflect their values and ensure they are marketed effectively, emphasizing quality ingredients and craftsmanship.”

Escalante, of Pilot Light Consulting, agreed that the biggest hurdle for RTD cocktails is guest perception. “Many guests perceive RTD cocktails as less fresh or exciting, but they are quite the opposite,” she said. “This perception can be overcome by training staff to be knowledgeable and graciously informative with your clientele.”

From Escalante’s vantage, there's no real downside to offering RTD cocktails, whether it be one or a handful of them. “The main exception might be at a craft cocktail bar, where fresh, made-to-order drinks typically taste superior and may eliminate the need for RTDs, due to the talent of your team and creativity of your program. That said, many excellent RTD options align with various establishment values – be it sustainability, creativity, innovation, or quality. These could be considered by guests as exciting options to try.”

Cowin, of Country Water, said the most common response from customers who are considering an RTD wine – especially for the first time – is having to drink the product straight from the can. “Something on-premise operators should consider is serving the beverage with a glass,” she said. “This way, the person who prefers a glass can have it and they will quickly realize that a cocktail or wine from a can is just as high quality as wine from the bottle.”

Love, of Club Kokomo Spirits, said the primary concern with a bar or restaurant offering RTD cocktails and mocktails is the potential to undermine the establishment’s existing drink program.

“While the RTD category has improved significantly, it cannot fully replicate the experience of a handcrafted premium cocktail made with fresh ingredients and top shelf spirits,” said Love. “So, they may not be a fit for every operator. For establishments with a well-established, innovative beverage program, introducing too many RTDs can dilute the brand’s reputation, distract customers from the core menu, or even fail to meet sales expectations, making it a potentially wasteful investment.”

Love suggested that operators evaluate these key questions:

  • Will offering RTDs enhance profitability without undermining existing offerings?
  • Can RTDs provide a fast, consistent alternative during peak hours without compromising quality?
  • How will RTDs affect the perceived value of the establishment?
  • Which products best complement the menu—higher-proof craft RTDs or mainstream seltzers?

“Ultimately, RTDs should be integrated thoughtfully with consideration for the venue’s branding, customer base, and operational needs,” said Love. “When chosen strategically, they can add value without detracting from the essence of the establishment.”

rtds in the on-premise

 

A Possible Downside: RTDs Could Lead to Safety Concerns at Bars, Restaurants

While RTD alcohol offers on-premise operators some benefits, there are some safety concerns to be aware of, according to Jannarone of Jannarone Consulting. “While these products offer convenience and variety, there are concerns about their potential misuse, especially among minors,” he said. “Alcopops, often sold in single-use cans with multiple servings, pose a risk of binge drinking, which can lead to serious health and safety issues, particularly for young people. This demographic is more vulnerable to the adverse effects of alcohol, including the risk of injury and the propensity for developing unhealthy drinking habits.”

Jannarone suggested that targeted marketing and advertising campaigns, particularly those aimed at youth, have been shown to increase consumption, including of products like alcopops and RTD cocktails. “These campaigns often leverage sweet flavors, vibrant packaging, and appealing imagery to attract younger demographics,” he said. “The convenience and variety offered by these products can make them particularly enticing to younger consumers, who may be drawn in by the marketing strategies that emphasize fun and lifestyle imagery."

With the ease of pre-mixed service, a server will also have less customer interaction, explained Jannarone. “One potential consequence of less customer interaction is the difficulty in identifying signs of intoxication,” he said. “With reduced engagement in the cocktail-making process, servers might have fewer opportunities to observe customers closely, making it challenging to assess their level of intoxication. This could potentially lead to safety concerns and require establishments to implement strategies such as staff training and customer engagement to address this issue effectively.”

 

Best Practices for Serving RTD Cocktails and Mocktails in the On-Premise

Dunne, of Lucas Bols, offered the following best practices for serving RTD cocktails and mocktails in an on-premise setting:

  • Consider Taste and Selection: Choose RTD products that are high-quality and align with your brand image. “Conduct taste tests regularly to ensure they meet your standards and cater to your guest's preferences,” said Dunne.
  • Remember, Presentation Matters: Elevate the presentation of RTD offerings by serving them in attractive glassware with garnishes that enhance the visual appeal. “This can help counter any misconceptions of lower quality,” advised Dunne.
  • Price Accordingly – Operators should consider pricing strategies, as RTD offerings may have different profit margins compared to traditional cocktails. “It’s crucial to balance cost with quality and perceived value to ensure customer satisfaction and profitability,” said Dunne.
  • Don’t Forget Staff Training: Equip your staff with knowledge about the RTD offerings, and how they fit into the overall beverage menu. Dunne said this will help your team sell the products effectively.
  • Think About Promotional Strategies: “Use creative marketing strategies to promote RTD cocktails and mocktails, such as themed nights, tastings, or pairing suggestions with food items,” suggested Dunne.
  • Monitor Trends: Stay abreast of market trends and consumer preferences, adapting your offerings as necessary to keep your beverage program relevant, fresh, and exciting to your guests. “By following these best practices, on-premise operators can successfully integrate RTD cocktails and mocktails into their offerings, enhancing the customer experience and driving sales,” concluded Dunne.

 

The RTD Cocktail and Mocktail Space Will Continue to Innovate, Offer Opportunities

Overall, for owners and operators in the hospitality space, the RTD category and its premium, flavorful, and innovative offerings are worth considering, per the experts Bar & Restaurant News spoke with.

“The RTD category offers numerous opportunities, and we'll likely see RTD cocktails continue to expand their creative offerings in the coming years,” said Escalante of Pilot Light Consulting.
 


Aaron Kiel is an award-winning journalist and public relations professional in Raleigh, N.C. He’s worked in the beverage, tea, and coffee industries for two decades, as well as hospitality and technology. He’s a journalist at heart, but he also wears a PR and communications hat through his consultancy, ak PR Group. Aaron is a contributing writer/reporter for Questex’s Bar & Restaurant News and he’s a past editor of Questex’s World Tea News. In 2023, he was a finalist and honorable mention in the “Folio: Eddie & Ozzie Awards” for “Range of Work by a Single Author – B2B” for Questex’s World Tea News. In 2024, Aaron won two awards for his work with Questex’s Bar & Restaurant News, including a Gold Northeast Region Award in the American Society of Business Publication Editors’ (ASBPE) Azbee Awards under the “Diversity, Equity & Inclusion” category, and a “Folio: Eddie & Ozzie Award” in the B2B article category for “Culture & Community.” He also received a 2024/2025 ASBPE Diversity Fellowship Award, which supports and recognizes diversity in the field of B2B journalism. Connect with him on Instagram: @adventurer_explorer or visit akprgroup.com.

 

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