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McDonald's closes CosMc's: end of a galactic experiment!
McDonald's will close its CosMc's stores in the USA from June 2025. The experimental concept for Gen Z ends after 1.5 years.
McDonald's closes CosMc's: end of a galactic experiment!
After just a year and a half, McDonald’s has discontinued its “CosMc’s” concept in the USA. With a focus on the younger generation, especially Gen Z, creative drinks and unusual snacks should be offered. But now the last five branches in Texas and Illinois are about to close, as Merkur reports.
The stores, which originally opened at the end of 2023 and were decorated in stylish blue tones with a space theme, failed to achieve the sales figures they had hoped for. In addition to the closure of the restaurants, the CosMc's app and the associated bonus program will also end in June 2025. Despite this decision, McDonald's emphasizes that the CosMc's project is viewed as a limited experiment that has brought valuable insights into new flavors and technologies.
Difficult times for fast food restaurants
The background for this decision is complex. In the last two quarters, McDonald's recorded falling sales figures in the USA, which can also be attributed to the difficult economic situation. More and more customers are spending less money on takeaway food, which is having a negative impact on business. So it was several companies, including Dutch Bros. and Swig Drinks, that put additional pressure on McDonald's by specializing in drinks.
The CosMc's concept was intended to help McDonald's attract new target groups as an answer to brands like Starbucks. However, the popularity of the CosMc's program was limited among young consumers. But the experience gained should not be completely lost. CEO Chris Kempczinski hinted that some of CosMc's most popular creations could potentially be added to McDonald's regular offerings.
In focus – Gen Z
Generation Z is at the heart of McDonald’s strategies. In fact, according to an analysis by Food Institute, McDonald's ranks first among the most "magnetic" restaurant brands, as evidenced by high customer engagement. In particular, memes and viral content increase interest and word of mouth about the brand. It's clear that restaurants that provide Gen Z with a consistent and memorable experience will continue to compete for their loyalty in the future.
McDonald’s remains active in Germany. Despite the challenges the brand faces in the US, it has opened 500 new stores here in recent months. In the German market, McDonald's is also launching exciting products for the younger target group, including a special edition of the popular McFlurry and a new pistachio-flavored milkshake. The brand is trying to stay creative and respond to the expectations of young buyers.
The CosMc's drinks that were tested in the USA will not come to Germany for the time being, and a test introduction is not planned. But McDonald's commitment to strengthening the connection to the target group through innovative products will continue in the future.