McDonald’s said it is opening a new chain called CosMC’s that will focus on coffee and other beverages, a move seen as a challenge to Starbucks and Dunkin’ as the fast-food giant seeks to boost afternoon sales.
The company said it will open its first CosMC’s location in Illinois this month, with plans to open additional restaurants in 2024.
The rationale for the restaurant stems from growing demand for an “afternoon beverage pick-up event,” a $100 billion market where McDonald’s currently does not have a strong presence, McDonald’s CEO Chris Kempczinski said at an investor presentation Wednesday. . The new chain will allow the company to create customized drinks that are difficult for McDonald’s restaurants to create, he added.
CosMC’s concept is “what would happen if a 1980s McDonald’s character who was part alien, part surfer, part robot” opened a restaurant in 2023, Kempczinski added.
What’s on CosMC’s menu?
The chain will include new custom drinks and McDonald’s favorites like the Egg McMuffin, the CEO noted.
Some of the coffee drinks that will be offered include a churro frappe, a s’mores cold brew and a turmeric spiced latte, according to the company. CosMC’s will also sell non-coffee drinks, including a sour cherry energy burst, a blackberry mint green tea and a popping pear.
The chain will also offer “sweet and savory treats,” Kempczinski said. These include a spicy queso sandwich, a creamy avocado tomatillo sandwich, pretzel bites and caramel fudge brownies.
What kind of drink customizations will it have?
McDonald’s said CosMC will offer customizations including popping boba, flavored syrups and energy and vitamin C shots.
Where are the CosMC locations?
The first location will be in Bolingbrook, Illinois, a suburb of Chicago, with about 10 additional locations set to open in Texas by 2024, Kempczinski told investors.
It’s not yet clear if CosMC’s will expand beyond that. The company said it will study the results for at least a year before deciding whether to add more locations.
Is McDonald’s adding more of its own restaurants?
Yes, McDonald’s plans to open approxin 2027, in what it expects will be the “fastest growth period” in its 60-year history, the company said Wednesday.
It comes as same-store sales rose 8.1% in the third quarter, pushing the chain to accelerate the pace of its restaurant openings.
—With reporting from the Associated Press.