McDonald's Shuts Down CosMc's Chain After 18 Months

In a surprising move, McDonald’s has announced the closure of its beverage-focused spinoff, CosMc’s, less than two years after its debut. All five remaining locations—four in Texas and one in Illinois—are set to shut down by the end of June 2025. The CosMc’s mobile app and loyalty program will also be discontinued by June 23, 2025.

CosMc’s was launched in December 2023 as an experimental concept aiming to capture the booming market for specialty beverages. With offerings like the French Toast Galaxy Latte and Pistachio Swirl Shaken Espresso, the chain sought to compete with established coffee giants. However, despite initial enthusiasm, CosMc’s failed to meet sales expectations, leading to its early demise.

☕ A Bold Experiment That Fell Short

CosMc’s was McDonald’s first new U.S. restaurant concept in over 60 years, designed to explore bold flavors and innovative technologies without impacting its core operations. The chain featured a unique menu of specialty drinks, teas, popping boba, and energy shots, along with select food items like breakfast sandwiches and pretzel bites.

Despite the novelty, customer traffic declined over time. McDonald’s reported a 3.6% drop in U.S. same-store sales during the first quarter of 2025, marking its weakest performance since the COVID-19 era. Economic pressures led both low- and middle-income customers to reduce spending, contributing to CosMc’s underperformance.

🔄 What’s Next for McDonald’s?

While CosMc’s is closing, McDonald’s plans to integrate some of the most popular beverage offerings from the spinoff into its main restaurant menus. A new beverage category team has been formed to oversee this initiative, aiming to enhance drink options across existing McDonald’s locations.

The company views CosMc’s as a valuable test platform that provided insights into consumer preferences, particularly in beverage customization. These learnings will inform future innovations within McDonald’s core operations.