Dive Brief:
- McDonald’s has modified its development plan for beverage-centric concept CosMc’s and will close three of its larger locations that were remodeled into CosMc’s, the company said Thursday.
- The company will open two smaller CosMc’s locations in Texas this year. McDonald’s didn’t indicate where the new locations would be and which ones closed, but the CosMc’s website lists a location coming in Allen, Texas.
- McDonald’s said that CosMc’s works best in smaller locations that have a focus on drive-thru and digital experience. The company originally planned to have nine Texas locations.
Dive Insight:
CosMc’s has been so popular that customers have been beset with long drive-thru waits. Smaller locations without dining rooms could help boost drive-thru times with more of a focus on off-premise customers than having to cater to both in-sore and drive-thru orders.
After launching CosMc’s in December 2023, McDonald’s opened one unit in Illinois and six in Texas. Other fast food chains have been trialing spin-off concepts as well, including Taco Bell’s Live Más Café, a beverage-centric concept inside an existing Taco Bell, and KFC’s Saucy restaurant, which focuses on 11 different sauces.
McDonald’s, which said CosMc’s has said is more of a learning lab, has also seen which flavors have been most popular. Its Island Pick Me Up Punch, Churro Cold Brew Frappe and the Sour Energy Burst are among the top sellers, while Fruity Popping Boba is the most popular drink to customize. Favorite food items have been Hashbrown Bites and McPops, with hundreds of thousands sold so far, per the company.
“We have just scratched the surface about what we can learn about this growing category,” McDonald’s said. “The tests will continue for the foreseeable future as CosMc’s continues to grow.”
Not all spin-offs have been successful. A handful of casual chains, including IHOP and Outback Steakhouse, have tried spin-offs in the past with smaller menus. IHOP closed its spinoff in 2023, while Outback parent Bloomin’ Brands has been closing its Aussie Grill locations in the U.S.
