What are restaurants doing to combat the loss of their highest-margin items? Another bonus of drinking water instead of a soft drink is a cheaper bill at lunch.
They're just increasing the prices of everything else. In earlier decades, restaurants used to sell their food at a near-loss because everyone had a couple of high-margin alcoholic drinks with their meal. When that started to go by the wayside, the restaurants had to increase the menu prices of the actual food. I expect we'll see the same thing happen if people stop buying beverages entirely, especially at fast-food restaurants where the soft drink is almost always the highest-margin element of the meal, making up for loss leaders like the "dollar menu".
