McDonald'sThe company announced on Thursday that it plans to test new CosMc's-style coffees, fruit drinks and flavored sodas in more than 500 restaurants later this summer, aiming to capture young consumers' love for fun and colorful drinks.
CosMc’s is a new concept restaurant launched by McDonald’s in the United States in December 2023. The brand name comes from the orange alien mascot in McDonald’s advertisements in the 1980s and 1990s.
Alyssa Buetikofer, McDonald's U.S. chief customer experience and marketing officer, said in a statement on Thursday: "We are observing strong growth in our beverage business, with more and more consumers - especially Gen Z fans - turning to ice-cold flavored drinks as their first choice snack. This provides us with a good opportunity to meet the changing taste needs of U.S. customers while expanding into new consumption scenarios such as afternoon coffee breaks."
McDonald’s CosMc’s-style drink test lineup includes undisclosed new products such as Vanilla Cream Cold Brew, Strawberry Watermelon Fruit Drink, Caramel Vanilla Frappuccino, Sprite Moonlight Sparkling Drink and Tropical Pop Fruit Drink.
According to McDonald's, initial testing of CosMc's-style drinks will be limited to stores in Wisconsin, Colorado and surrounding areas. The chain hopes to gain a deeper understanding of consumer preferences through the test and explore operating models for its restaurants and franchisees to expand its beverage line.
The announcement comes after McDonald's closed its popular CosMc's standalone stores last month. This spin-off brand, which focuses on snacks and customized drinks, initially caused customers to queue for hours to try it. However, after 18 months of operation, McDonald’s decided to terminate the brand and instead introduce CosMc’s-style drinks into the main brand restaurants.
Expanding the beverage line will help McDonald's better compete with fast-growing beverage chains such as Dutch Bros, 7 Brew Drive Thru Coffee and Swig. These brands have accurately grasped consumer demand for customized drinks.
CosMc's new drinks may also bring more traffic to McDonald's. The burger chain has seen weak sales in recent quarters as consumers cut back on French fries and Big Macs. In the first three months of this year, McDonald's U.S. same-store sales fell 3.6%. The company will announce its second-quarter results on August 6.
McDonald's fast-food competitors are also pushing beyond the boundaries of traditional sodas to develop new drinks that attract diners. Earlier this month, Yum Brands-owned Taco Bell launched a new line of Refrescas and plans to roll out its Live Mas Cafe in-store beverage concept later this year. Wendy's is adding three sour Powerade flavors to its drink menu in June. Earlier this summer, KFC also teamed up with PepsiCo to launch a "Dirty" Mountain Dew soda flavored with vanilla cream.