Introduction to CosMc’s Closure

McDonald’s said Friday that it’s closing down CosMc’s, a new restaurant format it began piloting in the U.S. last year.

Background of CosMc’s

The company announced in late 2023 that it wanted to test a small-format store with customizable drinks and treats that would appeal to afternoon snackers — and potentially grab sales from rivals like Starbucks and Dutch Bros. McDonald’s sales often slump in the afternoon between mealtimes and the company wants to change that.

CosMc’s Concept and Goals

“This is a $100 billion category that’s growing faster than the rest of (casual dining) and with superior margins. And it’s a space that we believe we have the right to win,” McDonald’s Chairman and CEO Chris Kempczinski said at the time. The concept included beverages such as matcha iced latte, turmeric spiced latte, prickly pear-flavored slushy with popping candy on top, and a frozen sour cherry energy drink.

Locations and Operations

McDonald’s wound up opening one CosMc’s location near its headquarters in Chicago, including a site in Bolingbrook, and seven in Texas. However, the company plans to shut them all down by the end of June. The company is also shutting down CosMc’s app. The decision comes after realizing that CosMc’s drinks might be too complex to fit in with regular McDonald’s store operations.

Legacy of CosMc’s

Despite the closure, McDonald’s said CosMc’s allowed it to experiment with bold flavors and different technologies, like drive-thru lanes that manage traffic based on the complexity of orders. It was also able to quickly edit the menu based on customer feedback. Moreover, beverages inspired by CosMc’s will soon be tested at U.S. McDonald’s locations, indicating that some aspects of the CosMc’s concept will live on.

Conclusion

The closure of CosMc’s marks the end of an experimental phase for McDonald’s but also opens the door for integrating successful elements into its existing operations. This move reflects the company’s commitment to innovation and its pursuit of capturing a larger share of the afternoon snack market.

FAQs

• Q: Why is McDonald’s closing CosMc’s?
  • A: McDonald’s is closing CosMc’s because the drinks and operations were found to be too complex to fit into regular McDonald’s store operations.
• Q: What will happen to the CosMc’s locations?
  • A: All CosMc’s locations, including the one in Bolingbrook, will be shut down by the end of June.
• Q: Will any part of CosMc’s be integrated into McDonald’s?
  • A: Yes, beverages inspired by CosMc’s will be tested at U.S. McDonald’s locations.
• Q: What was the goal of CosMc’s?
  • A: The goal of CosMc’s was to appeal to afternoon snackers and potentially grab sales from rivals in the $100 billion and growing casual dining market.