McDonald’s said it is opening a new chain called CosMc’s that will focus on coffee and other drinks, a move seen as a challenge to Starbucks and Dunkin’ as the fast food giant seeks to boost afternoon sales.
The company said it will open its first CosMc location in Illinois this month, with plans to open additional restaurants in 2024.
Speaking at an investor presentation on Wednesday, McDonald’s CEO Chris Kempczinski said the restaurant’s rationale stems from growing demand for the “afternoon drinking occasion,” a $100 billion market where McDonald’s does not currently have a strong presence. . He added that the new chain will allow the company to produce customized drinks that are difficult for McDonald’s restaurants to make.
The concept for CosMc is “what would happen if a McDonald’s character from the 1980s who was part alien, part surfer and part robot” opened a restaurant in 2023, Kempczinski added.
What’s on the CosMc menu?
The CEO noted that the chain will include new customizable drinks and McDonald’s favorites like the Egg McMuffin.
Some of the coffee drinks that will be offered include the churro frappe, cold brew s’mores, and turmeric spiced latte, according to the company. CosMc’s will also sell non-coffee drinks, including a sour cherry energy drink, blackberry mint green tea and pear slush.
The chain will also offer “sweet and savory,” Kempczinski said. These include a spicy queso sandwich, a creamy tomato avocado sandwich, pretzel bites and a caramel fudge brownie.
What kind of drink customizations will it have?
McDonald’s said CosMc’s will offer customizations including boba, flavored syrups, energy shots and vitamin C.
Where are CosMc locations located?
The first location will be in Bolingbrook, Illinois, a suburb of Chicago, with about 10 additional locations scheduled to open in Texas in 2024, Kempczinski told investors.
It’s not yet clear whether CosMc will expand beyond that. The company said it will study the results for at least a year before deciding whether to add more locations.
Is McDonald’s adding more of its own restaurants?
Yes, McDonald’s plans to openThe company said Wednesday that by 2027, it expects to have the “fastest period of growth” in its 60-year history.
This comes as same-store sales jumped 8.1% in the third quarter, prompting the chain to accelerate the pace of opening its restaurants.
-With Associated Press reporting.
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