McDonald's Opening New Franchise to Compete with Starbucks

3,596 Views | 27 Replies | Last: 2 yr ago by BusterAg
lethalninja
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https://www.cbsnews.com/news/mcdonalds-cosmcs-locations-near-me-bolingbrook-illinois-starbucks/

McDonald's said it is opening a new chain called CosMc's that will focus on coffee and other drinks, a step that is viewed as a challenge to Starbucks and Dunkin' as the fast-food giant seeks to boost afternoon sales.

The company opened its first CosMc's location in Illinois on Thursday, with plans to open additional restaurants in 2024.

The rationale for the restaurant stems for the growing demand for an "afternoon beverage pick-me-up occasion," a $100 billion market where McDonald's currently isn't a strong presence, said McDonald's CEO Chris Kempczinski, speaking at an investor presentation on Wednesday. The new chain will allow the company to create customized beverages that are difficult for McDonald's restaurants to create, he added.

CosMc's concept is "what would happen if a McDonald's character from the 1980s that was part alien, part surfer, part robot" opened a restaurant in 2023, Kempczinski added.

The chain will include new customizable drinks and McDonald's favorites like the Egg McMuffin, the CEO noted.

Some of the coffee drinks that will be offered include a churro frappe, a s'mores cold brew and a tumeric-spiced latte, according to the company. CosMc's will also sell non-coffee beverages, including a sour cherry energy burst, a blackberry mint green tea and a popping pear slush.

The chain will also offer "sweet and savory treats," Kempczinski said. These include a spicy queso sandwich, a creamy avocado tomatillo sandwich, pretzel bites and caramel fudge brownies.

McDonald's said CosMc's will offer customizations including popping boba, flavor syrups and energy and Vitamin C shots.

The first location is in Bolingbrook, Illinois, a suburb of Chicago, with about 10 additional locations set to open in Texas in 2024, Kempczinski told investors.

The first CosMc opened to the public on Thursday, located off Weber Road in Bolingbrook, according to CBS News Chicago. The opening drew throngs of customers, leading to long lines of cars waiting to place their orders at the drive-through. One customer told CBS Chicago he waited three hours to get a frappe.

It's not clear yet whether CosMc's will expand beyond the Illinois and Texas locations. The company said it will study the results for at least a year before determining whether to add more locations.
Señor Chang
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Quote:


CosMc's concept is "what would happen if a McDonald's character from the 1980s that was part alien, part surfer, part robot" opened a restaurant in 2023, Kempczinski added.

Simpsons did it already

Itchy and Scratchy - Goodbye, Poochie - YouTube

nortex97
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Did I miss the part about this that is politics-related?
lethalninja
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There was previously a thread about In-N-Out Burger on the politics forum. Also, it's business related and has to do with Texas, since there's locations opening here.
BCG Disciple
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Terrible name. Makes me think it's a coffee place for fat costumed larpers.
Aggie95
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It's basically Sonic....even with a space them name. I'm not sure how this concept will work for McD's as they can't seem to keep an ice cream machine working to save their lives...yet they are basing a large part of this concept on ice cream.
lethalninja
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They're basing it on coffee and drinks, not ice cream.
Aggie95
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https://cosmcs.com/

A bunch of shakes,mcflurry's, and ice cream cones.
Logos Stick
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Not to hijack, but McDs also spent the last 7 years in R&D changing their burgers. They are rolling out the new Big Mac's, etc right now.

Its a fascinating read about what they've done.
dreyOO
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They've already got a better coffee value prop. I like it
techno-ag
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I was amazed driving through Bryan and CoSta at all the coffee places. There was Starbucks, Dutch Bros and Seven something. But I commend Micky D's for upping their game several years ago on coffee and tea. Consistently good and a lot less expensive than Starbucks.
Trump will fix it.
Burnsey
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lethalninja said:

CosMc's concept is "what would happen if a McDonald's character from the 1980s that was part alien, part surfer, part robot" opened a restaurant.


As opposed to just offering a high quality unique or simple product that consumers will value and seek out. This concept will be an absolute bust. Straight loser.
nortex97
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If they are competing with Starbucks for dollars, all they have to offer is warm coffee and not be full on communists for me to prefer them.
YouBet
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Their coffee is better than Starbucks.
ThunderCougarFalconBird
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Video of the McDonald's board room when they came up with the idea:

Johnny Park!
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Looking forward to this. I hope we get one of those Texas locations close enough to check it out
No Longer Subsribed
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Great idea! Hope they succeed. You know, competition, making everyone better and likely cheaper and all that stuff.
coldmoose
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Looks more like Dutch Brothers.
Muy
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lethalninja said:

They're basing it on coffee and drinks, not ice cream.


Wrong
doubledog
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Let me guess, take the $1.00 small McD coffee and charge $5.00 for it. That is the starbucks way.
numetalbizkitaggie
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This isn't a copy of SBucks. It's a copy of Dutch Bros, even down to the color scheme! I'll keep going to the OG. No thanks.
riverrataggie
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Just call it diabetes to go.
nortex97
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doubledog said:

Let me guess, take the $1.00 small McD coffee and charge $5.00 for it. That is the starbucks way.


And use Italian names just to be obnoxious about small medium large.
kb2001
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McDonald's upped their coffee game several years ago, and it's actually really good. It's much better than Charbucks, without question.

The only negatives to this move are likely a higher price at the new place compared to the same cup of coffee at McDonald's, yet another coffee shop franchise dotting the landscape, and yet another place that asks for 20% tips for pouring a cup of coffee.
Trajan88
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There are Dutch Bros and Swigs popping up all over in Collin Co.

Looks that McD will be getting a piece of the action

I am a fan of McD iced coffee ... much cheaper than SBUX. And their breakfast offerings are a bonus.

Dutch Bros is great too, but the ones here are drive thru only (well, one has a picnic bench or two outside) Swig is drive thru only.

I'll go to this new McD's place before SBUX.
jja79
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Walmart sells cold brew concentrate for $4.42. Equal parts concentrate, water and milk, flavor it up with a little flavored creamer and save $6.95.
Logos Stick
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YouBet said:

Their coffee is better than Starbucks.


Gasoline is better.
BusterAg
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1) What is this company going to sell the 80% of the time that their ice cream machine is "broken"?

2) What in the world does a real estate investment company want with a coffee shop?
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