McDonald’s is set to open the first location of its new spinoff brand, CosMc’s, in Bolingbrook, Illinois, with plans to open nine more in Texas by the end of 2024 as part of a test phase. The fast-food giant will analyze data over the next year to determine whether it will expand the small-format chain. CosMc’s, named after a McDonaldland mascot from the late 1980s and early 1990s, features a menu that includes classics like Egg McMuffins and M&M McFlurries, along with new items such as Churro Frappes and pretzel bites. The brand is positioned as a fast, convenient option for afternoon snacks or coffee, tapping into a $100 billion category growing faster than the informal eating-out segment. McDonald’s CEO Chris Kempczinski emphasized that CosMc’s is currently a small-scale test with 10 stores, but if successful, it could expand globally.
The new locations will have a smaller real-estate footprint than traditional McDonald’s restaurants and are testing various layouts, including multiple drive-thru lanes. To enhance service speed, customers using credit cards will have the option to pay at the drive-thru speaker. McDonald’s is seeking to capture the customizable drinks and coffee market popular in the afternoon segment. The company unveiled its plans for CosMc’s as part of its investor day, along with long-term targets for new restaurant development, a goal to recruit 100 million new loyalty program members, and a strategic partnership with Google.
While the focus is currently on the test phase, McDonald’s acknowledges the potential for global expansion if CosMc’s proves successful. The move reflects McDonald’s efforts to diversify and explore new concepts beyond its primary business. However, past endeavors, such as acquisitions of Donatos Pizza and Boston Market, as well as a stake in Chipotle Mexican Grill, were divested in the late 1990s and early 2000s as McDonald’s faced challenges. The company’s cautious approach with CosMc’s indicates a measured strategy to ensure success in the evolving fast-food landscape.
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