McDonald’s unveils US CosMc's trial and global expansion

McDonald’s has unveiled details of its new retro-style restaurant concept, CosMc’s, positioning itself in the same market segment as Starbucks. The pilot, centered on specialty hot and cold drinks, will debut this month near Chicago, with plans to expand to 10 locations by the end of 2024. Simultaneously, the fast-food giant aims to open approximately 10,000 McDonald’s outlets globally by 2027, with a significant focus on China, increasing the total number of stores to around 50,000.

The inaugural CosMc’s is set to launch in Bolingbrook, Illinois, this week, featuring a menu tailored for those with a sweet tooth, offering items like the Churro Frappe and S’Mores Cold Brew. The brand draws inspiration from a McDonaldland mascot from the late 1980s and early 1990s. CosMc’s promises a unique customer experience, allowing patrons to craft “otherworldly” drink creations with options like popping boba bubbles and flavored syrups.

In the context of the cost of living crisis, consumers increasingly turn to affordable fast-food options like McDonald’s for treats. The move into specialty drinks aligns with the trend of social media users showcasing unique beverage combinations on platforms like TikTok.

McDonald’s ambitious growth strategy includes the addition of 900 new restaurants in the US, 1,900 in its international markets, and 7,000 in its international licensed markets. Over half of the 7,000 new establishments will be in China, where McDonald’s aims to solidify its position. While emphasizing caution, McDonald’s CEO, Chris Kempczinski, suggested that CosMc’s could potentially go global.

However, the company has faced challenges, including allegations of a toxic culture at its UK restaurants, revealed in a investigation earlier this year. Reports of sexual assault, harassment, racism, and bullying prompted McDonald’s to apologize and acknowledge shortcomings. The UK boss disclosed ongoing claims of sexual harassment following the investigation.