McDonald’s Debuts New Spinoff Brand CosMc’s in Bolingbrook, Illinois
McDonald's, the iconic fast-food chain, is set to open the first location of its new spinoff brand, CosMc’s, in Bolingbrook, Illinois, this week. This launch marks the beginning of an experimental phase for the company, with plans to open a total of 10 CosMc’s locations, including nine in Texas, by the end of 2024.
CosMc’s, named after a McDonaldland mascot from the late 1980s and early 1990s, represents McDonald’s latest venture into themed branding, following the success of its Grimace Birthday Meal earlier this year. CosMc, an alien mascot with a craving for McDonald's food, has inspired the concept of this new brand.
The menu at CosMc’s will feature McDonald's classics like Egg McMuffins and M&M McFlurries, alongside new offerings such as Churro Frappes and pretzel bites. McDonald’s aims to cater to the afternoon snack and coffee market with CosMc’s, positioning it as an ideal spot for a quick afternoon pick-me-up.
McDonald's CEO Chris Kempczinski highlighted the strategic importance of the new brand, focusing on the lucrative and rapidly growing $100 billion afternoon drink and coffee segment. CosMc’s is set to feature a smaller real-estate footprint compared to traditional McDonald’s restaurants, and will experiment with various layouts, including multiple drive-thru lanes and expedited payment options at drive-thru speakers.
The announcement of CosMc’s came during McDonald’s investor day, where executives discussed long-term goals for new restaurant development and plans to add 100 million new loyalty program members. A strategic partnership with Google was also revealed.
However, Kempczinski cautioned investors about getting overly excited about CosMc’s, emphasizing its current scale of just 10 stores. He stressed the significance of CosMc’s as indicative of McDonald’s potential for innovation and expansion, with the possibility of a global rollout if the test proves successful.
McDonald’s past ventures beyond its primary business, such as investments in Donatos Pizza, Boston Market, and Chipotle Mexican Grill in the late 1990s, were divested less than a decade later. These endeavors, which initially diverted focus from McDonald's core business, serve as a backdrop to the cautious approach towards CosMc’s expansion.
CosMc’s represents McDonald's ongoing efforts to diversify and innovate within the fast-food industry, responding to changing consumer preferences and market trends. The success of this new venture remains to be seen, with the potential to significantly impact McDonald's global strategy.