McDonald’s is closing its CosMc’s restaurants but plans to test drinks the chain ‘inspired’

McDonald’s has announced the closure of CosMc’s, a new restaurant concept that was being tested in the U.S. The company plans to introduce beverages inspired by CosMc’s at its regular McDonald’s locations. These new drinks include a matcha iced latte, a turmeric spiced latte, a prickly pear-flavored slushy with popping candy, and a frozen sour cherry energy drink.

In late 2023, McDonald’s revealed its intention to experiment with a smaller store format offering customizable drinks and snacks aimed at attracting afternoon customers and competing with brands like Starbucks and Dutch Bros. The company has been looking to boost sales during the afternoon lull between meal times.

McDonald’s CEO Chris Kempczinski expressed the belief that the beverage category presents a significant growth opportunity and the company is determined to succeed in that space. However, he mentioned that the complexity of the CosMc’s drinks may not align well with regular McDonald’s operations.

After operating one CosMc’s location near its headquarters in Chicago and seven in Texas, McDonald’s plans to close the remaining five locations by the end of June along with the CosMc’s app. The experiment with CosMc’s allowed McDonald’s to explore innovative flavors and technologies, such as drive-thru lanes that adjust traffic flow based on order complexity, and make menu changes based on customer input.