McDonald's shuts down CosMc's after less than a year of operations

In a move reflecting the challenges of quick-service innovation, McDonald's announced on May 23, 2025, that it would close down all remaining CosMc's locations. The pilot program, which began in 2023, featured a unique restaurant format designed to cater to customers seeking customizable drinks and snacks. It initially opened one branch in Chicago and seven locations in Texas, but due to operational complexities and integration issues with traditional McDonald's stores, the company has decided to shut down these outlets. The closure is expected to occur by the end of June 2025, along with the discontinuation of the CosMc's app. The rationale behind launching CosMc's was to tap into the afternoon snack market, an area where McDonald's had been experiencing a slump in sales. The company aimed to compete with beverage-focused rivals like Starbucks and Dutch Bros. CEO Chris Kempczinski commented that this market could present a significant opportunity with higher margins compared to standard casual dining experiences. However, the drinks offered at CosMc's, including more complex options such as matcha lattes and slushies, proved too intricate for the streamlined operations of regular McDonald's restaurants. Despite the closure, McDonald's plans to retain certain product ideas from CosMc's by testing select beverages inspired by the restaurant's menu in regular McDonald’s locations soon. Among the drinks that might be considered for broader distribution are a frozen sour cherry energy drink and a prickly pear-flavored slushy. The strategy reflects McDonald's ongoing efforts to innovate their offerings and improve afternoon sales. The closure of CosMc's illustrates the challenges in bringing new concepts to life within the fast-food industry, particularly when there is an organization established around efficiency and simplicity. Though the experimental nature allowed for menu flexibility and the quick integration of customer feedback, the complexities of execution led to a strategic retreat. McDonald's appears to be learning from this venture as it seeks to fine-tune its approach in meeting consumer demands for novel beverage options.