McDonald’s Officially Unveils New Spinoff Brand, CosMc’s

McDonald’s is set to open its new spinoff brand, CosMc’s, in Bolingbrook, Illinois, this week. The brand is targeting to have 10 outlets running, including nine in Texas, by the end of 2024.

The fast-food company identifies CosMc’s as an experimental venture and plans to evaluate its performance over a year by analyzing data to explore its potential as a smaller format chain.

“This is a $100 billion category growing faster than the rest of the [informal eating-out segment] and with superior margins.”

Chris Kempczinski, McDonald’s CEO, via CNBC

The name of this novel brand is inspired by CosMc, a McDonaldland mascot who took center stage in the advertisement campaigns during the late ’80s and early ’90s. CosMc, an extraterrestrial character, is known for his love for McDonald’s food. Considering the success of the Grimace Birthday Meal earlier this year, the company is emphasizing its mascot marketing.

News about McDonald’s carving out CosMc’s as a distinct brand has been brewing since July, but the fast-food giant has kept precise details under wraps until now. Recently, visuals of the Bolingbrook location emerged on X, formerly known as Twitter.

The menu at CosMc’s offers a blend of well-loved classics like Egg McMuffins and M&M McFlurries, along with exciting additions such as Churro Frappes and pretzel bites. McDonald’s anticipates CosMc’s to serve as a fast and easy option for those looking for a quick snack or coffee.

“Let me emphasize again, we’re talking about 10 stores. The big story isn’t about CosMc’s, per se. The big story is what it says about McDonald’s and our potential. To think, a little over a year ago, this was an idea, and this week we’re opening the first test site. It’s not worth our time to develop an idea that will only work in one market.”

Chris Kempczinski, McDonald’s CEO, via CNBC

Despite the excitement around CosMc’s, McDonald’s CEO Chris Kempczinski urges a cautious approach. He warned that previous attempts to diversify, such as investments in Donatos Pizza, Boston Market, and Chipotle Mexican Grill, became distractions and led to divestments within a decade. Therefore, the future expansion of CosMc’s will depend on the learning from its test phase, “but if the test works out, CosMc’s could open across the globe.”