McDonald’s is opening its first CosMc restaurant this week

  • McDonald’s plans to open 10 locations of CosMc’s, a new sub-brand, to test whether the concept can work across the United States and other markets.
  • The burger chain is positioning CosMc’s as a quick and convenient way to grab a snack or coffee.
  • The new brand name comes from CosMc, the McDonaldland mascot that appeared in ads in the late 1980s and early 1990s.

McDonald’s coz mac.

Courtesy: McDonald’s

McDonald’s will open the first location of its new CosMc’s brand this week in Bolingbrook, Illinois.

The fast food giant plans to open 10 CosMc locations, including nine restaurants in Texas, by the end of 2024 in a test. McDonald’s will then spend a year analyzing the data to decide whether to expand the small chain.

The new brand name comes from CosMc, the McDonaldland mascot that appeared in ads in the late 1980s and early 1990s. CosMc is an alien from outer space who craves McDonald’s food. The company has moved more towards marketing its mascots after having success with Grimace’s birthday meal earlier this year.

The burger chain first revealed the creation of CosMc’s as a subsidiary in July, but withheld further details about its plans. Photos of the Bolingbrook location appeared on X, formerly known as Twitter, earlier this week.

With a menu that includes old favorites like Egg McMuffins and M&M McFlurries, and new items like Churro Frappes and pretzel bites, McDonald’s is positioning CosMc’s as a quick and convenient way to get a snack or coffee.

“When 3 p.m. hits and you need a boost, take a trip to CosMc’s,” a narrator said in a video shown to investors on Wednesday.

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Screenshot of a 1980s McDonald’s ad featuring CosMc.

Source: McDonald’s | Youtube

McDonald’s specifically set out to create a brand that could sell customizable drinks and its popular afternoon coffee.

“This is a $100 billion category that is growing faster than the rest [informal eating-out segment] And with superior margins,” McDonald’s CEO Chris Kempczinski told investors.

CosMc restaurants will have a smaller real estate footprint than a typical McDonald’s location, but the new locations are testing a range of layouts, including multiple drive-thru lanes. Customers using credit cards will also be able to pay via the megaphone, speeding up service times.

The announcement was part of the company’s investor day. Executives revealed long-term goals for the development of its new restaurant, plans to recruit 100 million new loyalty program members and a strategic partnership with Google.

But Kempczinski stressed that investors shouldn’t get too excited about CosMc.

“Let me stress again, we’re talking about 10 stores,” he told investors on Wednesday. “The big story isn’t about CosMc’s per se. The big story is what it says about McDonald’s and our potential. To think, a little over a year ago, this was an idea, and this week we’re opening our first test site restaurant.”

But if the test If successful, CosMc’s could open worldwide.

“It’s not worth our time to develop an idea that will only work in one market,” Kempczinski said when explaining why McDonald’s created the brand.

However, McDonald’s previous efforts to expand beyond its core business have not been successful. In the late 1990s, it bought Donatos Pizza and Boston Market, and a stake in the fledgling Chipotle Mexican Grill. Less than a decade later, it abandoned these three companies, which became a distraction while McDonald’s struggled.

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