McDonald’s to shut down CosMc’s locations, will trial its drink creations in main stores

McDonald’s said on Friday that it is shutting down CosMc’s, a new type of restaurant it started testing in the U.S. last year.

However, the company said some of CosMc’s drinks will soon be tested at McDonald’s locations in the U.S. Drinks from CosMc’s current menu include a matcha iced latte, a turmeric spiced latte, a prickly pear slushy with popping candy, and a frozen sour cherry energy drink.

In late 2023, McDonald’s shared plans to try out a small-format store offering customizable drinks and snacks that would attract afternoon customers. The idea was to compete with places like Starbucks and Dutch Bros. McDonald’s usually sees fewer sales in the afternoon, and wanted to improve that.

“This is a $100 billion category that’s growing faster than the rest of (casual dining) and with superior margins. And it’s a space that we believe we have the right to win,” McDonald’s Chairman and CEO Chris Kempczinski said at the time.

But Kempczinski said the drinks at CosMc’s might be too complicated to include in regular McDonald’s kitchens.

McDonald’s ended up opening one CosMc’s location near its Chicago headquarters and seven more in Texas. There are still five open, but the company plans to close them all by the end of June. CosMc’s app is also being shut down.

McDonald’s said CosMc’s gave it a chance to try bold new flavors and test different tools, like drive-thru lanes that adjust for order complexity. It was also able to change the menu quickly based on what customers liked.