McDonald’s is opening a new spinoff chain called CosMc’s that will focus on coffee and other drinks instead of burgers, to challenge Starbucks and Dunkin’ and to boost afternoon sales.
The rationale for the restaurant stems for the growing demand for an “afternoon beverage pick-me-up occasion,” a $100 billion market where McDonald’s currently isn’t a strong presence, said McDonald’s CEO Chris Kempczinski, speaking at an investor presentation on Wednesday. The new chain will allow the company to create customized beverages that are difficult for McDonald’s restaurants to create, he added.
The first location will open this week in Bolingbrook, Illinois, a suburb of Chicago, with about 10 additional locations set to open in Texas in 2024. It’s not clear yet whether CosMc’s will expand beyond that. The company said it will study the results for at least a year before determining whether to add more locations.
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 a churro frappe, a s’mores cold brew and a tumeric-spiced latte, according to the company. CosMc’s will also sell non-coffee beverages, including a sour cherry energy burst, a blackberry mint green tea and a popping pear slush.
The chain will also offer “sweet and savory treats. These include a spicy queso sandwich, a creamy avocado tomatillo sandwich, pretzel bites and caramel fudge brownies.
CosMc’s will offer customizations including popping boba, flavor syrups and energy and Vitamin C shots.
The CosMc character (in the 1980’s) was an alien who craved McDonald’s food and visited Earth to bring the famous fast food back to his home planet.
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McDonald’s is also planning on opening about 10,000 new McDonald’s locations worldwide by 2027 in what it anticipates will be the ‘fastest period of growth’ in it’s 60-year history.
