CosMc: McDonald's Starts Testing New Store Format
CosMc locations will begin opening in the next six months.
There are plenty of changes underway at McDonald's. Not only is the chain making major changes to the Big Mac, but it's also starting to roll out a massive new restaurant concept. Announced earlier this year, the Golden Arches have officially started putting together plans to open up CosMc locations, the chain's attempt at competing with Starbucks, Dunkin, and other drink and snack spots.
Wednesday, McDonald's officially announced intentions to open 10 CosMc locations within the first few months of 2024. The first location will be near the company's global headquarters in Chicago while the remaining nine locations will be placed throughout Texas. The company will analyze performances in those markets for a year before making the decision on whether or not to take the idea nationwide.
During the company's latest investors call on Wednesday, McDonald's president Chris Kempczinski said the restaurant is planned to address a slump in sales in very particular categories, which include Frappes and other drinks. CosMc locations will serve "upgraded" versions of its standard offerings, which Kempczinski says doesn't fit in with the branding and product lineup of flagship McDonald's locations.
"This is a $100 billion category that's growing faster than the rest of (casual dining) and with superior margins. And it's a space that we believe we have the right to win," Kempczinski said during the call. CosMc locations will also serve snack-type foods that aren't regularly at McDonald's locations.
"Let me emphasize again, we're talking about 10 stores," he added. "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 the first test site."
The idea was first revealed to the public during a June investor's call, one where Kempczinski touted the smalled restaurant size compared to regular McDonald's restaurants.
"CosMc's is a small format concept with all the DNA of McDonald's, but with its own unique personality," Kempczinski said at the time. It was on that same call Kempczinski attributed higher-than-expected sales numbers to the success of the viral Grimace Shake campaign.