McDonald's To Close All Locations Of Spinoff CosMc's 2 Years After Launch

CosMc’s rocketed to popularity with the help of social media influencers when McDonald’s launched the concept store. But the fast food giant announced Friday that the journey was over for the restaurant.

All CosMc's locations, which were designed to cater to a younger audience, are closing. 

"Starting in late June, we will be closing all standalone pilot CosMc’s locations on a rolling basis and discontinuing the CosMc’s app," McDonald's said in a statement. Some of the stores’ signature beverages — with flavors like Sour Cherry Energy Burst and S’Mores Cold Brew — will make their way onto the McDonald’s menu. 

The first CosMc’s opened in Chicago in December 2023 and was an instant hit, with customers drawn to wait in line for hours by viral influencer campaigns. McDonald's announced plans to expand the brand in June 2023, with roughly 10 locations slated to open by the end of last year, CoStar reported. 

McDonald’s said Friday that CosMc's, which was a beverage-focused concept with a limited menu focused on sweets, allowed the company to test bold flavors and new technology without impacting its core restaurant operations. 

Only five locations ever opened, the original store outside of Chicago and locations in San Antonio and Fort Worth, Texas. McDonald’s said in January that it would close the large-format stores while keeping two smaller locations in operation.

At the time, the company boasted about the viral launch of CosMc’s in 2023 and highlighted a bright future for the brand. 

"There is so much more to learn — and space exploration continues! We have just scratched the surface about what we can learn about this growing category," the company said in a statement. 

Fast casual restaurants exploded in popularity during the pandemic as consumers eschewed or were blocked from sit-down dining. But financial and foot traffic data reflects shifting preferences. 

Quick-service restaurants saw sales decline 1.7% month-over-month in April, according to data analyst Revenue Management Solutions and reported by Fast Company. McDonald’s in the first quarter reported its largest decline in same-store sales since 2020. 

Fast food prices are up 2%, RMS found, and a gloomy consumer outlook could continue to weigh on sales. 

The weak Q1 results followed a lackluster year for McDonald’s. Despite what he called a big year, CEO Chris Kempczinski said on the firm’s February earnings call that “2024 did not meet our expectations.”