McDonald’s is pulling the plug on its trial beverage-heavy brand CosMc’s after just 18 months due to coronavirus lockdowns hampering the business. The idea of the space, a way to test out new drinks in a freestanding format, will close all five of the pilot locations in the next few weeks. While discontinuing them, McDonald’s says it will maintain seven of the new drink flavors as it rolls them out in its 13,000+ U.S. restaurants.
1 month Ago By Iwo Mazur
CosMc’s served as a learning experience How did the project go?
While CosMc’s was unsuccessful at transforming itself into a permanent brand, the fast-food behemoth emphasized that the mission was always about understanding rather building a new global chain. McDonald’s called the project a “launchpad for learning” and said it helped the company gain better insight into the products that customers preferred and innovate its beverage offerings. These learnings will be put into use immediately in a new U.S. beverage test at existing U.S. McDonald’s restaurants with curated CosMc’s-inspired drinks.
Initial Caution, Limited Scope From the Start
At the time CosMc’s opened in December 2023, CEO Chris Kempczinski had signaled that expectations should be restrained. He cited previous efforts to diversify, including Boston Market, Donatos Pizza and Chipotle Mexican Grill, all of which were eventually divested. CosMc’s was deliberately cautious, opening just 10 stores, not hundreds. At one time, McDonald’s planned to open two smaller CosMc’s restaurants in Texas, one in Allen. But no firm plans for closures and new sites were ever agreed upon.
The New Flavors Will Stay, the Concept Will Go
While CosMc’s is ending as a separate brand, the effort is not considered a failure. Instead, McDonald’s is applying what it’s learned to beef up its existing business. The coming launch of exclusive, CosMc’s-style flavors at traditional McDonald’s locations signals a change in strategy, as experimental ideas are now being folded into the main brand rather than kept separate.
The closure represents the close of a short chapter in McDonald’s innovation journey, even as it has paved the way for new concepts and new flavors at the company’s centuries-old locations.
Copyright @ 2024 IBRA Digital