McDonald鈥檚 said Friday that it鈥檚 closing down CosMc鈥檚, a new restaurant format it began piloting in the U.S. last year.
But the company said beverages inspired by CosMc鈥檚 will soon be tested at . Among the drinks on CosMc鈥檚 current menu: a matcha iced latte, a turmeric spiced latte, a prickly pear-flavored slushy with popping candy on top and a frozen sour cherry energy drink.
McDonald鈥檚 announced that it wanted to test a small-format store with customizable drinks and treats that would appeal to afternoon snackers 鈥 and potentially grab sales from rivals like Starbucks and Dutch Bros. often slump in the afternoon between mealtimes and the company wants to change that.
ARTICLE CONTINUES BELOW
鈥淭his is a $100 billion category that鈥檚 growing faster than the rest of (casual dining) and with superior margins. And it鈥檚 a space that we believe we have the right to win,鈥 McDonald鈥檚 Chairman and CEO Chris Kempczinski said at the time.
But Kempczinski said CosMc鈥檚 drinks might be too complex to fit in with regular McDonald鈥檚 store operations.
McDonald鈥檚 wound up opening one CosMc鈥檚 location near its headquarters in Chicago and seven in Texas. Five locations remain, but the company plans to shut them all down by the end of June. The company is also shutting down CosMc鈥檚 app.
McDonald鈥檚 said CosMc鈥檚 allowed it to experiment with bold flavors and different technologies, like drive-thru lanes that manage traffic based on the complexity of orders. It was also able to quickly edit the menu based on customer feedback.
