McDonald’s to Shut Down CosMc’s Spinoff Amid Shifting Consumer Trends

McDonald’s has announced it will shutter its CosMc’s spinoff, just two years after launching the beverage-centric brand aimed at younger, trend-savvy consumers.

The fast-food giant confirmed Friday that all five CosMc’s locations – four in Texas and one in Illinois – will close by the end of June. The decision also spells the end for CosMc’s standalone mobile app and loyalty program.

CosMc’s debuted in 2023 as an experimental offshoot inspired by rising competition from niche beverage chains like Dutch Bros., Scooter’s, and Swig. Named after a lesser-known alien character from McDonald’s lore, the concept targeted Gen Z customers with a colorful menu of customizable drinks and snack items meant to appeal to afternoon cravings.

At the time, McDonald’s positioned CosMc’s as a chance to test new flavor profiles, order technology, and operational workflows without disrupting its core restaurant operations. However, customer behavior didn’t match expectations. Customization – a key part of the concept – was far less popular than anticipated, and the added complexity did not deliver the expected return.

The closure comes as McDonald’s faces broader financial headwinds. The company recently reported a second straight quarter of declining U.S. sales, with inflation and economic uncertainty prompting many consumers to cut back on discretionary spending. That shift has pushed McDonald’s to double down on its main offerings and overall value proposition.

In a statement, the company said CosMc’s gave it “permission to play in the fast-growing beverage space” and provided valuable insights into menu innovation and operational improvements. Some of those lessons may live on: McDonald’s CEO Chris Kempczinski noted during a recent earnings call that select franchisees will begin testing new customizable drinks – inspired by CosMc’s – later this year.

While CosMc’s is ending its brief run, its influence could still shape future updates to McDonald’s main menu as the company adapts to evolving consumer tastes.