Even though the Utah-based “dirty soda” concept has been around for the last 10 years or so, it was only within the last two years that the rest of the country began to take notice of the unique non-alcoholic drink concoctions. The dirty soda craze really took off in 2022 when TikTok-ers began posting photos of their dirty soda creations, piggybacking off of the popular Gen Z singer Olivia Rodrigo, who started the trend by posting her own dirty soda drink from Utah. Although there are many Utah-based dirty soda chains popular in the state, a few of the brands are now proving to be especially successful with national expansion outside of the state. Expect Swig, FiiZ Drinks and Quench It! to all be seeking new real estate sites.
Swig, which had The Larry H. Miller Company acquire a majority stake late last year and consequently introduced multi-unit franchising within that same time frame, is now reaping the benefits with massive expansion goals. The brand expects to open around 125 new units per year over the next three to four years, both corporate owned and franchised, beginning in 2024.
In September alone, Swig announced that 12 different franchise partners have signed on to open 250 franchise units, expanding Swig’s presence from its current five states — Utah, Arizona, Texas, Oklahoma and Idaho — to 11 states. For franchise growth, Missouri and Arkansas are expecting new units by late 2023, and Tennessee, the Carolinas and Florida will all see growth in 2024 and beyond. In addition, Swig is continuing its own corporate owned expansion. Nevada is expecting its first unit by year’s end, while Nebraska, Iowa and Kansas will be eyed for new units. Growth will also continue within the states where Swig already has a presence.
Open pad spaces along busy retail streets, ideally on corner lots of power centers, are perfect for Swig’s new construction freestanding drive-thru builds, which are generally in the 600- to 650-s.f. range. Depending on the space parameters, however, units can be as large as 2,000 s.f. with a dine-in area, or as small as 500 s.f. with only a drive-thru/walk up ordering window. Swig can also open on an end cap space of a multiple-tenant building, provided a drive thru can be accommodated. Family friendly suburban locations, as well as sites near high schools or colleges work very well for Swig as a large portion of its audience are younger aged, from children to 20-somethings. Co-tenants should include retailers and food tenants that appeal to families and younger adults, such as DICK’s Sporting Goods, Five Below or McDonald’s. Swig is known for its wide array of unique beverages, using such bases as soft drinks, boba tea, energy drinks, juices and sparkling water that are mixed in with various flavors, such as syrups or vanilla cream, to create unique combinations.
FiiZ Drinks expects to wrap up 2023 by opening up to 35 new units, and the company plans to have that number bump up to 75 new units per year from 2024 until late 2027. In 2023, FiiZ opened its first units in new states outside of Utah, namely New Mexico, Ohio and North Carolina. In the future, FiiZ is eyeing new franchise growth into the Northwest, especially Oregon and Washington, as well as the Midwest, such as Missouri, Iowa and Nebraska, in addition to the South, with Arkansas and Louisiana on its radar.
Although FiiZ is open to constructing its own standalone drive-thru units, the brand is also willing to occupy second-generation standalone drive thrus, end caps or inline spaces in strip centers, power centers or grocery-anchored centers. Space should be in the 1,500- to 2,000-s.f. range. Suburban neighborhoods within
major metros, as well as spaces in small town secondary markets are all considered, but the site should be on a busy retail street, and the area should have a large family residential population and/or be near multifamily developments. Co-tenants can include high-traffic daily visit-type brands, such as Dollar General, Planet Fitness, or even a childcare concept such as Kiddie Academy. FiiZ Drinks is known for its customizable beverages or mixed combinations that incorporate not just soft drinks, but also smoothies, frozen whips, energy drinks, Italian sodas, juice and even ice cream. FiiZ also offers chonuts, a hybrid of churros and donuts.
The Quench It! franchise anticipates opening between 10 and 15 new units per year over the next year or so, and hopefully bumping that number up to at least 20 per year by 2025. Quench It! opened its first location outside of its home state of Utah in September with a unit in Cypress, Texas, and a second location in the state will open soon in The Woodlands, as well as units in the new states of Arizona, in San Tan Valley, and Nevada, in Elko.
Further growth will take place next year in the previously mentioned states, as well as in the new state of South Carolina, in Columbia. As awareness of the brand grows, expect new markets targeted to include more Western states, especially Idaho and New Mexico, as well as more Southern states such as North Carolina, Georgia and Florida.
Real estate requirements for Quench It! are drive-thru locations, in the 1,000- to 3,000-s.f. range, that can either be end caps of a retail building or strip center, or an empty pad site for a new construction standalone building. Although space on a busy suburban retail street is ideal, the new construction standalone drive-thru sites can also be on empty lots on streets that are off Main and Main, provided the site is close to residential homes or multifamily buildings. The location should be in close proximity to popular family errand brands, including Costco, gas stations, The UPS Store, or quick-service restaurants such as Chick-fil-A, Subway or Panda Express. Quench It! is especially eager to be a part of new retail construction projects in growing neighborhoods that are underpenetrated with refreshment drink/snack brands. In addition to selling a multitude of unique drink combinations that appeal to adults, teens and children alike, including 32 of its own soda concoctions that can incorporate fruit, whipped cream and ice cream, Quench It! also sells cookies, pretzel bites and nachos.
