At the end of 2023, McDonald’s CEO, Chris Kempczinski, surprised customers and shareholders alike by announcing a new restaurant chain. The spinoff brand, CosMc’s, is a beverage focused restaurant and when it opened…
It took the country by storm.
But how is the location holding up six months later?
And is the success they received at the beginning of the year already fading?
CosMc’s: It Came From Outer Space
CosMc’s opened it’s first location on December 7, 2023, in a Chicago suburb…
Conveniently stationed right across the street from a McDonald’s location.
This spinoff chain is inspired by a long-forgotten McDonald’s mascot by the same name. In the 80’s, CosMc appeared as an alien who traveled across the universe to try patties courtesy of the golden arches.
As such, the spin-off chain is space themed, with the menu bolstering “out of this world” flavors and drink combinations.
The new chain focuses primarily on catering to the mid-afternoon beverage and snack market. CosMc’s aims to fulfill the sweet treat/customizable beverage niche starbucks has a chokehold on. Plus, it helps restaurants’ bottom line.
“IT’S A GOOD PROFIT MARGIN FOR RESTAURANTS. WITH BEVERAGES, YOU CAN GET REALLY CREATIVE, WITHOUT NECESSARILY HAVING THE PRODUCT LINES THAT YOU WOULD HAVE TO INVEST IN WITH FOOD.”
It’s not just the store’s overall branding that sets it apart from the competition…
Playing into the futuristic aspect…
The entire operation is completed exclusively through drive-thru lanes…
And due to the eatery’s initial popularity, these lines were often hours long.
Now, McDonald’s has opened three more CosMc’s all in Texas with plans to open more soon…
But how has the spin-off chain fared since it’s opening?
Blasting Off Or Crashing Down To Earth?
Comparatively, the lines that would originally wrap around CosMc’s when it opened…
Are now virtually nonexistent.
But this does not mean that all is lost.
Maccie’s is planning on launching a distinct CosMc’s app to offer loyalty points and better track customer data.
The burger conglomerate has pans to open up a total of 10 CosMc’s locations before the year ends as a part of the new brand’s trial run.
BUT DEPENDING ON HOW THE CHAIN IS CURRENTLY DOING, THEY MAY OR MAY NOT EXPAND BEYOND THAT NUMBER.
Currently, the brand is struggling with some aspects that its parent company did not anticipate beforehand. One of the biggest issues at the moment is the length of time it takes for these highly customizable drinks to get to the customers.
With over hundreds of combinations…
Creating completely unique drinks for every customer adds time to the drive-thru line…
An issue that starbucks has similarly had to deal with and confront.
What’s Next For The New Chain?
While things might not be looking too bright for CosMc’s…
The truth is McDonald’s is not broken up over the potential successes/failures the new chain might bring…
In fact, the main story is not about CosMc’s at all. When they introduced the new chain at the December investor presentation…
Kempczinski said the following about their latest investment:
“THE BIG STORY ISN’T ABOUT COSMC’S, PER SE. THE BIG STORY IS WHAT IT SAYS ABOUT MCDONALD’S AND OUR POTENTIAL.”
While CosMc’s is still completing it’s test-run this year…
McDonald’s executives are looking at the chain as both a way to break into a new market, but also as a learning experience…
Let’s just hope that the company is ready if the chain comes hurling back to earth.
Be Great,
GCTV Staff
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