In a strategic move to fine-tune its CosMc’s brand, McDonald’s has announced the closure of three locations while opening two new ones in Texas. CosMc’s, McDonald’s drinks-focused spinoff brand, was launched over a year ago as part of the fast-food giant’s effort to diversify its offerings, particularly for the growing “afternoon beverage pick-me-up” market. The initial location in the Chicago suburb of Bolingbrook was followed by six additional stores in Texas. However, after evaluating performance, McDonald’s has decided to close three of the larger CosMc’s locations and replace them with two smaller prototype restaurants in Texas, where the brand has garnered notable attention.
The decision to focus on smaller stores comes after McDonald’s tested various formats. The company has found that the smaller locations are better suited for the test, offering more flexibility and success compared to their larger counterparts. While McDonald’s has not disclosed the exact locations of the closures or new openings, CosMc’s official website has announced a new store coming soon to Allen, Texas, signaling its continued expansion in the state.
McDonald’s has also shared its early learnings from the CosMc’s pilot program. Among the popular offerings, savory hash browns have emerged as the top-selling item at all hours of the day, followed by McPops — the chain’s mini filled doughnuts. On the beverage front, the Island Pick-Me-Up Punch, Churro Cold Brew Frappe, and Sour Energy Burst have proven to be customer favorites. These products align with the trend of customizing drinks and snacks, appealing to younger consumers who are increasingly drawn to beverages with bold flavors and unique ingredients. The beverages offered by CosMc’s include new items such as iced turmeric spiced lattes, tropical spiceade, and pretzel bites, all of which play off current trends in the beverage and snacking sectors. These offerings place CosMc’s in competition with other beverage-focused chains like Starbucks, Dutch Bros, and Kung Fu Tea, all of which have successfully catered to younger demographics by offering cold drinks with customizable options.
CosMc’s, a brand rooted in nostalgia, takes its name from CosMc, a McDonaldland character that appeared in advertisements in the late 1980s and early 1990s. CosMc is depicted as an alien who has a deep craving for McDonald’s food, adding a playful and whimsical element to the brand’s identity. Despite being a small part of McDonald’s extensive footprint — which includes more than 13,500 U.S. locations — the brand’s future growth remains uncertain. McDonald’s aims to use CosMc’s as a learning tool to better understand its customers, particularly through initiatives like a loyalty program specific to the brand, which was rolled out last year.
While the brand is still in its early stages, McDonald’s views the CosMc’s test as an ongoing experiment that will continue for the foreseeable future. The company is keen to gauge the potential for growth in this new sector of the market and whether its younger, beverage-focused customers will become a lasting audience. As McDonald’s explores this new territory, the closure and opening of new CosMc’s locations are part of the company’s strategy to refine its business model and increase profitability in an ever-evolving fast-food industry. With its focus on beverages, snacks, and an engaging customer experience, McDonald’s hopes to make CosMc’s a viable addition to its business portfolio, especially as consumers’ preferences continue to shift toward more specialized and customizable food and drink options.
