McDonald’s closing CosMc’s concept, eyes broader beverage rollout

McDonald’s (NYSE:MCD) is closing its concept CosMc’s restaurants and incorporating some of its signature beverages, smoothies, and frappés at its namesake restaurants.

“Building on the insights gained from the pilot standalone locations, CosMc’s-inspired flavors will be landing at McDonald’s as part of the upcoming US beverage test, seamlessly blending out of this world tastes into the McDonald’s experience,” the company said in a statement on Friday.

The standalone CosMc’s stores will close in late June, according to a notice on the CosMc’s website, notifying customers that its loyalty program, mobile app, and web ordering services will be discontinued on June 23.

To capitalize on the popularity of coffee chains like Starbucks (SBUX) and offer unique beverages that are too complicated and time-consuming to offer at the burger chain, McDonald’s (NYSE:MCD) opened its first alien-themed small-format beverage-focused concept CosMc’s in Bolingbrook, Illinois in 2023 with nine more in 2024. By creating a “Learning Lab” that quarantined the complexity of signature drinks in stand-alone locations, McDonald’s was able to test and learn in real customer-facing environments.

During McDonald’s (NYSE:MCD) Q1 earnings call, CEO Chris Kempczinski said he was motivated to incorporate CosMc’s beverages into the regular menu by customer preference for “recipe-ed drinks” rather than more complex customized beverages.

“We’ve discovered some interesting learnings through our CosMc’s test, which has better informed our understanding of consumers’ customization preferences,” he added, confirming that the company plans to launch a beverage test in the U.S. later this year.