McDonald's Introduces CosMc's Trial in the US and Plans for Global Expansion

McDonald's has announced its new restaurant concept, CosMc's, which will target the same market as Starbucks. The pilot restaurant will open later this month in a neighborhood in Chicago, and the company aims to have around ten locations operational by the end of 2024. Additionally, McDonald's plans to open approximately 10,000 new restaurants worldwide by 2027, with a significant focus on the Chinese market. This expansion would bring the total number of McDonald's stores to approximately 50,000. The first CosMc's restaurant will open in Bolingbrook, Illinois, this week, followed by ten more locations in Texas in 2024. The menu at CosMc's appears to cater to those with a sweet tooth, featuring items such as Churro Frappe and S'Mores Cold Brew. While there will also be a selection of McDonald's classic offerings, including Egg McMuffins, the focus of CosMc's will be on coffee and sweet treats. McDonald's already operates the McCafe chain, which exclusively offers coffee and desserts. The name CosMc's is derived from a McDonaldland mascot, an extraterrestrial character that craves McDonald's food. This mascot was featured in advertisements during the late 1980s and early 1990s. The decision to introduce CosMc's comes as many consumers turn to affordable fast-food options like McDonald's due to the current cost of living crisis. Despite fluctuations in consumer spending, McDonald's has managed to maintain a steady customer base. In addition to its new restaurant concept, McDonald's has announced ambitious growth plans. The company aims to open 900 new restaurants in the US, 1,900 in international markets where it operates its own restaurants, and 7,000 in its international licensed markets. China will account for more than half of these new additions, as McDonald's sees it as an increasingly important market. The company recently secured greater control over its business in China and believes it could potentially surpass other markets in size. However, McDonald's acknowledged that the ongoing conflict in the Middle East is impacting its business. Nonetheless, CEO Chris Kempczinski expressed caution regarding CosMc's, suggesting that it may not generate excessive excitement but did not rule out the possibility of global expansion. He emphasized that it is not worth their time to develop a concept that would only work in one market.