McDonald’s is shutting down all five locations of CosMc’s, its standalone beverage-led concept, by the end of June—bringing the short-lived experiment to a close just two years after launch.
Positioned to compete with fast-growing drive-thru beverage chains targeting Gen Z, CosMc’s focused on highly customisable drinks and sweet snacks. However, the spinoff failed to gain traction, with customer demand for personalised options falling short of internal forecasts.
The chain was initially created to trial new drink formats, digital ordering systems, and operational processes without impacting standard McDonald’s outlets. But with the brand now navigating two consecutive quarters of sales decline amid inflationary pressures and shifting consumer priorities, leadership appears to be doubling down on core offerings.
Although CosMc’s physical stores and digital app are being retired, select menu innovations from the concept are expected to be trialled within existing McDonald’s franchises later this year. The move signals a strategic pivot towards incremental innovation inside the company’s primary operating model, rather than through parallel ventures.
All CosMc’s locations, four in Texas and one in Illinois, will close by the end of June. McDonald’s will also discontinue the CosMc standalone app and rewards programme.