The world’s biggest fast-food chain is going big in a quest for cold drink supremacy.
What happened: McDonald's is launching a new restaurant concept called CosMc’s, a grab-and-go-style spin-off that will directly compete with the cold drink offerings at Starbucks, including menu items like churro frappes, pear slushies, and turmeric spiced lattes.
- The chain’s first location, just outside of Chicago, will feature four drive-through lanes, no dining room, and digital order queuing, which allows for more orders.
- The idea is to crack into the specialty beverage and broader coffee market, where it hasn’t been able to compete with Starbucks’ cold drink dominance in the U.S.
Why it matters: CosMc’s is McDonald's answer to changing consumer preferences around cold drinks (which are beloved) and dining preferences (where takeout is king). McDonald’s likely won’t be the last chain to forgo their ‘dining rooms’ for a fast, digitized take-out format.
- With only 14% of fast food orders eaten in dining rooms, chains like Taco Bell, Chick-fil-A, and Starbucks are also leaning into drive-thrus and digital-first locations.
What’s next: McDonald’s plans to open 10 CosMc’s in the U.S. by the end of 2024. If they’re a hit, we could see them pop up in Canada and around the world as the company aggressively pursues its goal of opening up 50,000 new stores by 2027.—LA