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- McDonald's plans to shutter three locations of its spinoff brand, CosMc's, and open two more restaurants in Texas.
- The company said smaller locations work better for the test, which led to the decision.
- McDonald's introduced CosMc's as its strategy to tap into the expanding market for "afternoon beverage pick-me-up occasions."
McDonald's will shutter three locations of its drinks-focused spinoff brand, CosMc's.
To test the concept, the fast-food giant opened its first CosMc's location more than a year ago in the Chicago suburb of Bolingbrook, followed by six more in Texas. McDonald's has converted larger namesake restaurants into CosMc's, in addition to building smaller prototype locations.
The company announced on Thursday that the smaller stores have proven to be more effective for testing purposes. Consequently, McDonald's plans to shut down three of its larger CosMc's locations while launching two additional small restaurants in Texas. While the specific sites for the openings and closures have not been revealed, CosMc's website indicates that a new store is on the way to Allen, Texas.
On Thursday, McDonald's revealed additional insights from their pilot program. The most popular food item, available at all hours, is the savory hash browns, closely followed by McPops, which are the chain's small filled doughnuts. The leading beverages include the Island Pick Me Up Punch, Churro Cold Brew Frappe, and Sour Energy Burst.
The company has stated that the CosMc's test will persist for the "foreseeable future."
McDonald's introduced CosMc's as its strategy to tap into the expanding market for "afternoon beverage pick-me-up occasions."
While CosMc's menu features some McDonald's classics, it also offers a host of new items playing off other beverage and snacking trends, like its iced turmeric spiced lattes, tropical spiceade and pretzel bites. Starbucks, Dutch Bros. and bubble tea chain Kung Fu Tea have found success with younger consumers by offering customizable cold drinks.
The new brand takes its name from CosMc, a character from McDonaldland that featured in commercials during the late 1980s and early 1990s. CosMc is an extraterrestrial being with a strong desire for McDonald's cuisine.
Although the extent of McDonald's growth plans for CosMc's remains uncertain, it currently represents a tiny fraction of the fast-food giant's extensive presence in the United States, which boasts over 13,500 restaurants. Nonetheless, McDonald's aims to gain deeper insights into the preferences of its CosMc's clientele; to this end, the company launched a dedicated loyalty program for CosMc's customers last year.
