Why Some McDonald's CosMc's Locations Are Already Closing

Unless you live in Chicago or Texas, you may not have even been aware that McDonald's had spun off a cafe concept. Like Chick-fil-A's Little Blue Menu test kitchen, which rolls out experimental menu items, McDonald's CosMc's locations focused on drinks and snacks. Word broke recently that in response to triumphs and challenges over the first year of CosMc's existence, McDonald's will be closing three locations. Is this proof that the Golden Arches was a failure in this endeavor? On the contrary: The same announcement heralded the opening of two additional CosMc's locations in Texas.

There are tens of thousands of McDonald's locations in the world, but only a handful of CosMc's outlets. McDonald's plans to continue testing the drinks-focused concept, but with the wisdom of what works and what doesn't. The company determined that smaller-scale stores performed better than physically larger cafes, so it is closing three of the bigger CosMc's branches and planning to open a pair of the more diminutive eateries. This way, lucky consumers in select locations can continue enjoying the coffee drinks, smoothies, flavored lemonades, and variety of snacks that CosMc's offers. While the locations being closed are not known at this time, one tidbit McDonald's did share is that it will open a new CosMc's location in Allen, Texas.

Fun fact: The McDonald's spin-off is named CosMc's after a bubble-bodied orange alien who appeared in ads in the late 1980s and cavorted with Ronald McDonald, Grimace, and the Hamburglar in McDonaldland. When CosMc came to earth, he became enamored of McDonald's burgers and fries and vowed to spread the good word of fast food to his home planet. CosMc the alien may be an obscure relic of the past, but the snack-and-drink chain christened in his honor seems to have a bright future, despite recent closures.

The CosMc's concept was introduced as a way for McDonald's to increase its afternoon sales, branching out into what it called at the time the "afternoon beverage pick-me-up occasion." Undoubtedly following in the footsteps of Starbucks with its menu of handcrafted drinks and curated bites, as well as Dunkin', Dutch Bros, and Peet's Coffee, CosMc's appeals to busy Americans looking for a midday sugar or caffeine boost. As per the results of its yearly report, CosMc's most popular menu items include its hash brown bites and McPop's, which are donut holes with sweet fillings. Its drinks also follow gastronomic trends, like a turmeric-infused latte and spicy lemonade.

McDonald's is betting that consumers will come back again and again for CosMc's, hopefully replacing their daily runs to their favorite coffee shop. The company has unveiled a CosMc's loyalty program to tempt customers to return on the regular.