USA – The largest fast food chain in the world, McDonald’s has adjusted its expansion strategy for the beverage-focused CosMc’s concept and will shut down three larger locations that were converted into CosMc’s, the company announced on January 9.
McDonald’s will open two smaller CosMc’s locations in Texas this year, with one confirmed in Allen, Texas, according to the official CosMc’s website.
The company did not specify the exact locations or units that had closed. Initially, McDonald’s planned for nine Texas locations.
CosMc’s is designed for smaller spaces focused on drive-thru and digital experiences. The brand has experienced long drive-thru wait times due to high demand.
Smaller, drive-thru-only formats could improve service speed by prioritizing off-premise customers over in-store traffic.
Since launching in December 2023, CosMc’s has opened one location in Illinois and six in Texas.
Other fast-food brands are also experimenting with spin-offs, such as Taco Bell’s Live Más Café and KFC’s Saucy restaurant, which emphasize specialty beverages and sauces, respectively.
McDonald’s views CosMc’s as a learning platform to test consumer preferences.
Popular beverages include the Island Pick Me Up Punch, Churro Cold Brew Frappe, and Sour Energy Burst, with Fruity Popping Boba being the most customized drink.
Top-selling food items for the spin-off are Hashbrown Bites and McPops, with hundreds of thousands sold.
CosMc’s menu blends McDonald’s classics with trend-driven items like iced turmeric spiced lattes, tropical spiceade, and pretzel bites.
Competitors such as Starbucks, Dutch Bros, and Kung Fu Tea have attracted younger consumers through customizable cold drinks.
McDonald’s stated that CosMc’s is still in the early stages of exploring the beverage and snacking market. Testing will continue as the concept evolves.
However, not all restaurant spin-offs succeed. IHOP closed its spin-off in 2023, and Outback Steakhouse’s parent company, Bloomin’ Brands, is reducing its Aussie Grill locations in the U.S.
CosMc’s remains a small part of McDonald’s overall U.S. operations, which includes more than 13,500 restaurants. Still, McDonald’s aims to gain insights into CosMc’s customers, launching a dedicated loyalty program last year to support this effort.
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