McDonald’s Location Shift

McDonald’s Shuts Down Three Locations of Its Drinks-Focused Spinoff Brand, CosMc’s

McDonald’s will shutter three locations of its drinks-focused spinoff brand, CosMc’s, as it refines its strategy for the concept. The decision comes after a year-long test period, during which the company opened a total of nine CosMc’s locations, including one in the Chicago suburb of Bolingbrook and six in Texas.

Why the Closures?

According to McDonald’s, the smaller prototype locations work better for the test, and as a result, the company will close three of its larger format CosMc’s locations and open two more small Texas restaurants. The locations of the closures and openings have not been disclosed, although a new CosMc’s store is expected to open soon in Allen, Texas.

What’s Working Well?

McDonald’s shared some early learnings from the pilot, including that savory hash browns are the top-selling food item at any time of day, followed by McPops, the chain’s mini filled doughnuts. The best-selling drinks include the Island Pick-Me-Up Punch, Churro Cold Brew Frappe, and the Sour Energy Burst.

The Test Continues

The CosMc’s test will continue for the "foreseeable future," according to McDonald’s. The company created CosMc’s as its entry point into the growing "afternoon beverage pick-me-up occasion."

Menu Highlights

CosMc’s menu features some McDonald’s classics, as well as new items playing off other beverage and snacking trends, such as its iced turmeric spiced lattes, tropical spiceade, and pretzel bites. The brand is positioned as a competitor to other successful beverage chains, including Starbucks, Dutch Bros, and bubble tea chain Kung Fu Tea, which have found success with younger consumers by offering customizable cold drinks.

The Name

The name CosMc’s comes from CosMc, a McDonaldland mascot that appeared in advertisements in the late 1980s and early 1990s. CosMc is an alien from outer space who craves McDonald’s food.

Conclusion

McDonald’s is still evaluating the potential for growth of CosMc’s, but for now, the brand remains a small part of the company’s overall U.S. footprint. With over 13,500 U.S. restaurants, McDonald’s is hoping to learn more about its CosMc’s customers and refine its strategy for the brand.

Frequently Asked Questions

Q: Why is McDonald’s closing CosMc’s locations?
A: McDonald’s is closing three CosMc’s locations as it refines its strategy for the concept.

Q: Why is McDonald’s testing CosMc’s?
A: McDonald’s created CosMc’s as its entry point into the growing "afternoon beverage pick-me-up occasion."

Q: What are the best-selling items at CosMc’s?
A: Savory hash browns and McPops are the top-selling food items, while the Island Pick-Me-Up Punch, Churro Cold Brew Frappe, and the Sour Energy Burst are the best-selling drinks.