McDonald’s ambitious leap into the coffeehouse game has come to an abrupt end. Less than three years after launching its Starbucks-style spin-off, CosMc’s, the golden arches are shutting down all standalone locations. While the brand didn’t take off as hoped, it wasn’t all for nothing—McDonald’s is keeping the best of CosMc’s and blending it into its core menu. Here’s how the rise and fall of CosMc’s played out, and what’s next for those “out of this world” drinks.
A Bold Sip Into the Beverage World
Launched in 2023, CosMc’s was McDonald’s shot at competing in the booming specialty drink market. It offered colorful, customizable drinks alongside coffee, tea, and snacks. The goal was clear—bring McDonald’s brand power into a Starbucks-style experience.
Menu Meant to Impress
CosMc’s menu went beyond standard McDonald’s fare. It featured sweet and savory treats, breakfast sandwiches, and the buzzy “McPops” pastries. Drinks were the star, ranging from fruity lemonades to indulgent slushes and espresso-based creations.
All the McDonald’s DNA—With a Twist
McDonald’s CEO described CosMc’s as having the brand’s familiar appeal but with its own quirky personality. It was a smaller-format store designed to experiment without disrupting the core McDonald’s experience.
A Playground for Bold New Flavors
CosMc acted as a test lab for adventurous flavor combos and innovative tech. This allowed McDonald’s to trial drinks and processes without risk to its main menu or customer flow.
From Standalone to In-Store
While standalone CosMc’s locations are closing, its drinks aren’t disappearing entirely. McDonald’s plans to roll many of the popular recipes into hundreds of its restaurants nationwide.
Why the Plug Was Pulled
Despite its novelty, CosMc’s struggled to gain traction. Sales lagged, and McDonald’s decided to cut losses early rather than drag out the experiment.
Economic Pressures Hit Hard
The closure comes amid McDonald’s weakest sales since the pandemic lockdowns. A 3.6% drop in U.S. same-store sales signaled that customers were pulling back on spending.
Middle-Income Diners Cut Back
Even loyal middle-income McDonald’s customers started visiting less often. Inflation and economic uncertainty had more people skipping non-essential purchases, including premium drinks.
A Victim of Timing?
CosMc’s launched in a tough retail climate, where consumers were reevaluating every dollar spent. Specialty drinks may have been an easy item to cut from budgets.
The Starbucks Comparison
From the start, CosMc’s drew parallels to Starbucks. The look, menu, and vibe were clearly aimed at pulling in coffeehouse fans—but the brand couldn’t quite steal the spotlight.
Small Format, Big Ambitions
McDonald’s envisioned CosMc’s as a nimble, scalable concept that could quickly expand if successful. The closure shows that even a giant can misjudge the market.
McPops: The Sweet Spot
One of CosMc’s most memorable items was the McPop—a bite-sized donut-like pastry. Fans may still see these pop up on the McDonald’s menu in the future.
The Technology Trials
Beyond drinks, CosMc’s experimented with new ordering and service tech. This helped McDonald’s test systems that could speed up service in regular locations.
From Loss to Lessons
McDonald’s framed CosMc’s as a valuable learning experience. The company says it gained insights into consumer tastes and operational efficiencies.
Drinks That Will Live On
CosMc’s “out of this world” drinks will soon land in McDonald’s restaurants. Expect some of the bold, colorful creations to make their way to your local drive-thru.
A Reminder: Not Every Bet Pays Off
Even with deep pockets and brand recognition, success in a new market isn’t guaranteed. CosMc’s short life is a case study in testing, pivoting, and knowing when to exit.
