McDonald’s to Shut CosMc’s After Two-Year Test Run
In a surprising move, McDonald's has announced that all CosMc's, its test brand centred on drinks will be closed, marking the end of a very brief pivot away from fast food for the fast-food giant. CosMc's was a response to the increased demand for flavoured beverages and afternoon refreshment occasions from the increas
In a surprising move, McDonald's has announced that all CosMc's, its test brand centred on drinks will be closed, marking the end of a very brief pivot away from fast food for the fast-food giant.
CosMc's was a response to the increased demand for flavoured beverages and afternoon refreshment occasions from the increasingly influential Gen Z consumer group, and it was launched in 2023. Instead of centring on a more popular character from the 1980s McDonald's brand, CosMc drew on a less popular character for inspiration when creating a drink-focused brand prototype. CosMc's served bright, bold drinks that could be fully customized and light snacks to place the brand between fast food and coffeehouses.
While a novel idea, CosMc's did not meet all the internal benchmarks McDonald's had set. When creating Cosmc's brand experience, there was less consumer choice for drink customization than anticipated, a fundamental aspect of their differentiation from Dutch Bros., Swig, and Scooter's Coffee. The five CosMc locations—four in Texas and one in Illinois—are scheduled to close within two years by the end of June 2025.
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Moreover, the various CosMc app and loyalty programs will be phased out. This comes as McDonald's struggles with a challenging consumer environment with declining sales for consecutive quarters and an increased focus on core menu items and efficiency.
Although the restaurants will be closed, McDonald's believes there are elements of the CosMc experience that can be utilized. CEO Chris Kempczinski said McDonald's would plan to take some customizable drink elements from the CosMc concept into their primary restaurant concept in the next year through franchised testing.
CosMc's was billed as a lab for everything from flavour profiles to operations experiments. While it will close, maybe McDonald's will use and feel CosMc's presence as the company continues to refine their beverage strategy.
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