By Shabnam Weber

In an era defined by changing consumer habits, rising health consciousness, and experience-driven dining, tea is having a moment, and smart operators should pay attention. From functional beverages to the sober curious movement, it’s no longer just a sideline item; it’s a centre-stage opportunity for foodservice businesses to enhance profitability, expand beverage offerings, and meet evolving customer demand.

**Functional beverages and the wellness wave **

Consumers today are looking for more than just hydration; they’re seeking beverages that do something for them. The rise in functional drinks is one of the most significant trends in the food and beverage industry, and tea is riding that wave in full force.

From green and matcha to turmeric, ginger, moringa, and adaptogenic herbals, teas now come packed with benefits: energy boosts, digestive support, anti-inflammatory properties, immunity, and stress relief. These aren’t just marketing claims; they’re part of what younger consumers, especially Millennials and Gen Z, are turning to as a daily ritual for wellness.

For restaurants and cafés, this opens up new menu possibilities. Offering a rotating “wellness tea of the month,” creating a signature iced version with antioxidant-rich ingredients, or introducing a “calm and focus” tea blend can tap into this demand while commanding premium pricing.

**The sober curious shift **

Alcohol consumption continues to decline among younger generations, driven by a growing focus on health, mindfulness, and lifestyle balance. According to Berenberg Research, Gen Z is drinking about 20 per cent less alcohol than Millennials did at their age. This “sober curious” movement has opened the door to non-alcoholic options that still feel grown-up and indulgent.

Tea is a natural fit for this phenomenon. Sophisticated enough to replace a cocktail and versatile enough for creative presentation, mocktails, sparkling iced teas, and kombucha are rising stars on modern menus. Whether it’s a cold-brewed oolong spritzer or a floral white served in a coupe glass with citrus and herbs, the key is presentation, taste, and intent.

For operators, this trend is an invitation to elevate your menu. Position tea as part of your non-alcoholic beverage strategy and give it the same love you’d give a craft cocktail. The margins are high, and the consumer appeal is growing, so the revenue potential is on the rise.

**Ready-to-drink and on-the-go **

The ready-to-drink (RTD) tea market is booming, with global sales projected to exceed US $47 billion by 2030. Consumers want convenience, and RTD teas deliver, especially when they come with clean labels, low sugar, and functional ingredients.

Even full-service restaurants can play here, with bottled house-made iced teas, pre-batched tea spritzers, or cold brew tea in to-go packaging, which are great for cafés, brunch spots, or hybrid dine-in/takeout businesses. These formats don’t just meet customer needs; they increase the average cheque total and can help drive revenue during non-peak hours.

**A new era of lattes **

Move over chai, because matcha is here to stay! Tea lattes have expanded from a seasonal coffee shop trend into a year-round menu staple. Matcha lattes, London Fogs, Hojicha lattes, and even Butterfly Pea or Golden Turmeric versions offer café-style indulgence with perceived wellness benefits.

They also come with serious profitability. A tea latte has a cost of goods sold (COGS) often below $1.00, but retails for $4 to $7. Customizations such as oat milk, honey drizzle, and plant-based whipped cream can appeal to a larger customer base and drive the price (and margin) up even more.

Restaurants and cafés can capitalize by including these lattes on brunch menus, dessert pairings, or as an afternoon pick-me-up. With proper training and equipment (such as milk frothers, matcha whisks, and more), these drinks are easy to incorporate without disrupting kitchen flow.

**Global and cultural curiosity **

Today’s consumer is curious, and tea tells a story. Featuring regional specialties like Japanese Sencha, Taiwanese Oolong, South African Rooibos, or Moroccan Mint adds global flair and enhances the customer experience. Offering a short tea menu that highlights origin, preparation style, and suggested pairings adds a layer of education and connection that diners appreciate.

Tasting flights, pairing menus, or even tableside service of loose-leaf tea in clear infusers elevate the offering and create shareable moments for social media. These small experiences are inexpensive to execute but memorable for the guest, and that’s where loyalty and word-of-mouth begin to help build your business.

**Serving tea right: the details matter **

Despite its rising popularity, tea is still often poorly served in restaurants. It’s boiled to bitterness, under-steeped, or tossed into the back of the menu with little thought or presentation.

But when served with care, tea becomes an experience. Use the right temperature water (never boiling for green or white teas), ensure steeping time is followed, and serve in attractive glassware or teapots. If using loose-leaf, consider providing timers or small cards to guide customers.

Train your staff to talk about tea the same way they might talk about wine, cocktails, or coffee. A few key talking points on flavour, origin, or health benefits will make your tea menu feel intentional and informed.

**A low-cost, high-return beverage **

Beyond the fleeting trends, tea remains one of the most profitable items you can offer on the menu. The markup is significant, often more than 500 per cent, and the inventory costs are low. Tea has a long shelf life, requires no refrigeration, and can be used in multiple formats: hot, iced, latte, cocktail, mocktail, to-go, and dessert-infused.

Unlike coffee, which demands precise brewing and expensive equipment, tea can be scaled easily and consistently. Whether you’re running a full-service restaurant, a fast-casual spot, or a grab-and-go café, tea fits the bill.

**Final thoughts **

In a changing beverage landscape, tea offers something rare: it’s ancient, adaptable, and exactly what today’s consumer is looking for. Whether they want health benefits, cultural discovery, a non-alcoholic indulgence, or simply something comforting and familiar, tea delivers and does so with impressive margins.

For foodservice operators, the opportunity is steeped in potential. The question is no longer *should *you pay attention to tea; it’s *how fast *you can elevate it.

*Shabnam Weber has spent over 25 years in the tea industry, beginning with her own innovative tea company in Toronto. Now President of the Tea and Herbal Association of Canada, she developed the Tea Sommelier® program and has helped position the association as a global industry leader. Shabnam serves as Canada’s representative and Vice-Chair of the UN FAO Intergovernmental Group on Tea and is a co-founder of the International Alliance of Women in Tea. Named one of CEO Magazine’s Top 50 Women over 50, she champions diversity and sustainability while working to strengthen the global tea community through collaboration and connection. *

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