Midwest Welcomes McDonald’s Spinoff, CosMc

Midwest Welcomes McDonald's Spinoff, CosMc | Mr. Business Magazine

A new CosMc standalone building emerges in Bolingbrook, Illinois, showcasing the brand’s signature yellow logos. Despite the shop not yet being open, it boasts four drive-thrus and a visible menu offering various items, including specialty drinks like the ‘Churro Frappe’ and ‘Blueberry Ginger Boost.’ CEO Chris Kempczinski emphasizes the unique personality of the small-format concept, set to debut in limited locations early next year. The move is part of McDonald’s ‘Accelerating the Arches’ strategy, with shares up 9% but trailing behind Restaurant Brands and the broader market. 

CosMc Concept:

McDonald’s has unveiled more details about its secretive CosMc’s concept, a cafe pilot seen as the fast-food giant’s response to Starbucks. CEO Chris Kempczinski described CosMc’s as a small-format concept with the DNA of McDonald’s but a unique personality. The cafe, named after a little-known 1980s McDonald’s character that is part alien, part surfer, part robot, will focus on specialty coffee drinks, including churro frappes and s’mores cold brew. The move is aimed at tapping into the attractive and fast-growing specialty coffee market. The company plans to test the concept, starting with a location in Bollinbrook, Illinois, and nine more in Texas in the first half of next year.

McDonald’s is eyeing a significant opportunity in the coffee market, not just in test locations but across its regular outlets. Jo Sempels, responsible for markets where McDonald’s licenses its brand, highlighted the attractiveness of the coffee category, citing its size, high profitability, rapid growth, and ingrained consumer habits. To unlock the full global potential of McCafe, the company plans to integrate it into the core menu offering and make it the exclusive coffee brand at McDonald’s. Sempels also mentioned efforts to standardize coffee taste by streamlining equipment across locations and hinted at a forthcoming cold coffee initiative, potentially drawing inspiration from Starbucks’ success in the cold drink segment.

McDonald’s announces CosMc’s spin-off will open in Chicago suburbs this week, shares new menu items

Enhancing Tastes:

To maximize the global reach of McCafe, the company is set to position it as a fundamental component of its core menu, becoming the sole coffee brand offered at McDonald’s establishments. Sempels further outlined plans to enhance the consistency of coffee taste across various locations by streamlining the equipment used.

Moreover, McDonald’s is venturing into the cold coffee realm, indicating a strategic move influenced, in part, by the success of Starbucks’ diverse offerings in the cold beverage market. As the fast-food giant continues to adapt and evolve its McCafe concept, these strategic initiatives aim to cement McDonald’s presence in the lucrative and rapidly expanding coffee landscape.

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