Chick-fil-A is expanding way beyond sweet tea.
The Atlanta-based chicken chain said it plans to open a new beverage-focused restaurant concept, Daybright, this fall in the Atlanta area.
“Daybright is brought to you by Red Wagon Ventures LLC, which is a subsidiary of Chick-fil-A,” the chain said in a statement. “We look forward to sharing more details in the future!”
The standalone concept will feature specialty coffees, smoothies, cold-pressed juices and food. However, no Chick-fil-A menu items — food or beverages — will be served at Daybright.
Chick-fil-A will be entering a competitive but potentially lucrative arena. In 2024, the U.S. nonalcoholic beverage market was valued at $169.5 billion, with specialty coffees capturing over 25% of that total — and both are projected to keep growing, according to research that Taco Bell cited in a statement earlier this month.
That’s why chains such as Chick-fil-A outside the incumbent beverage servers — companies like Starbucks, Dunkin’ and Dutch Bros. — are looking for a piece of the action. Taco Bell, part of Yum Brands, referred to the beverage industry data when it announced it is set to open two additional California-based Live Más Cafés — for three total in the state — and it’s expecting 28 more by the end of this year. Those beverage-serving cafés are located within Taco Bell eateries.
But not all beverage-focused concepts endure. Fast-food juggernaut McDonald’s earlier this year shelved its CosMc’s spinoff concept. The first one opened in late 2023 in Bolingbrook, Illinois, near Chicago, followed by a handful of others. But in May, McDonald’s said it would be shutting them all. Instead, the burger chain plans to serve CosMc’s-inspired drinks at hundreds of its restaurants.
The first Daybright will be located at the site of a former Chick-fil-A, according to the chain, but it declined additional comment. However, signs for the new concept were put up — and later covered — at a former 4,000-square-foot Chick-fil-A eatery at 4326 Jimmy Lee Smith Parkway in Hiram. The Chick-fil-A once there has been moved down the road to a bigger location at 5223 Jimmy Lee Smith Parkway. Hiram is about 25 miles from downtown Atlanta.
Bill Read, an executive vice president at Retail Specialists, said Chick-fil-A has picked a good spot for its new concept.
“I lease Hiram Pavilion just down the street, a 600,000-square-foot power center owned by Acadia Realty Trust, and the market is booming,” Read said Wednesday in an email to CoStar News. “Hiram is part of the explosive growth happening in Paulding County and the retail market is strong.”
Chick-fil-A relocated its restaurant to accommodate larger drive-thru stacking lanes, according to Read.
“It makes sense they would recycle a well-located former location to their new concept,” he said. “It’s getting to be a crowded market with all the coffee concepts opening, but I think Chick-fil-A can make a good run at this growing business.”
Daybright is part of Red Wagon Ventures, which was launched to create concepts and services beyond Chick-fil-A’s banner restaurants. Its mission is to explore new forays.
Red Wagon is named after the red wagon that Chick-fil-A founder Truett Cathy used in his very first business effort: selling Coca-Cola to his neighbors at the age of 6.
Taco Bell opened its first Live Más Café in December 2024. Each café has its own drink machines and staff members, known as "Bellristas."
“In response to growing demand, Taco Bell will open 30 new Live Más Café locations within existing Taco Bell restaurants across Southern California, Dallas, and Houston by end of year,” a spokeswoman for the chain said in an email to CoStar News.
Taco Bell kicked off its expansion plans earlier this month by opening three café locations — one each in Irvine, San Diego and Simi Valley — with more set to open across Southern California on a rolling basis, she said.
The Live Más Café drink menu includes the Mountain Dew Baja Blast as well as 25-plus flavored Freezes, including the Strawberry Limonada.