The new Allen, Texas, location is one of two smaller-format units planned this year
CosMc’s, McDonald’s beverage-led spinoff concept that debuted in Bolingbrook, Ill., in December 2023., has opened its newest unit in Allen, Texas.
Aside from Bolinbrook and Allen, CosMc’s also includes one location in Fort Worth and two in San Antonio. McDonald’s previously reported plans to open 10 total test locations but has since adjusted that number, recently announcing it will open two units this year while closing three existing locations.
The two new units will be small-format stores, while the three CosMc’s slated to close are larger locations converted from traditional McDonald’s restaurants. The company said smaller format stores have proven to be more effective for the concept. There could also be more locations planned, as the company said the CosMc’s test will continue for the “foreseeable future as it continues to grow.”
“We have just scratched the surface about what we can learn about this growing category,” the company recently said.
During McDonald’s fourth-quarter earnings call earlier this week, chief executive officer Chris Kempczinski said the company is “very bullish” on the opportunity in beverages and the category is growing about twice as fast as the rest of the McDonald’s business.
“The learning with CosMc's continues. … What we're learning is there's certainly an opportunity in that space. The smaller units tend to perform better. You want to drive-thru with that,” Kempczinski said.
He also hinted at the possibility of translating CosMc’s menu/model into existing McDonald’s restaurants.
“As we refine our plans, I think you'll hear more from us about how much of that opportunity needs to come through new units with something standalone like CosMc's or how much of the potential do we think we can capture by doing more within the existing restaurants, and there's a lot of … thinking about what we might be able to do to capture that opportunity in the current restaurant,” he said.
New Churro lineup
CosMc’s sells signature beverages such as the Island Pick Me Up Punch, Churro Cold Brew Frappé, and Sour Energy Burst. The most popular drink customization is the addition of Fruity Popping Boba. On the food side, Savory Hashbrown Bites have been the top seller across dayparts, while CosMc’s has also sold hundreds of thousands of McPops (which are essentially mini doughnuts).
In addition to announcing its new Allen location, the concept also launched an expanded churro lineup this week, including a Churro Cold Brew, Iced Churro Latte, Churro Latte, and Churro Shaken Espresso. Churros, long pieces of fried dough coated with cinnamon and sugar, are a street food found in Spanish and Latin American cuisines. They can be filled with caramel, chocolate or other flavored sauces. Operators have been using churro flavor as the inspiration for desserts like ice cream and cake, and more recently, beverages.
Churros have steadily grown on menus throughout the past five years, according to Techonomic data, and are now represented on nearly 4% of menus. Burger King recently introduced Churro Fries, while Round Table Pizza launched Churro Twists last year. In late 2023, First Watch debuted Cinnamon Spice Churros. On the beverage side, Taco Bell has been testing Churro Chillers, which are also part of the company’s spinoff concept Live Más Café.
Contact Alicia Kelso at [email protected]
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