Why is McDonald's closing its CosMc's locations? Reasons explained

 CosMc
CosMc's (Getty via Soap Central CMS- Resized on Canva)

McDonald's will close all the remaining CosMc's locations by the end of June 2025, the company announced on May 23, 2025, as per Live Now Fox. CosMc's was a spinoff brand of McDonald's and focused on serving hot and cold drinks to the customers.

The chain was started in December 2023, and now, along with locations in Illinois and Texas, the company will also be discontinuing its CosMc's app. The decision to shut down the chain stems from several strategic insights the company gained during the pilot program.


McDonald's is closing its CosMc's locations

CosMc’s was launched as a pilot program for the company to step into the specialty beverage market, targeting the afternoon 'snack and sip' crowd. It also aimed to compete with chains like Starbucks and Dunkin Donuts. However, on Friday, the company announced that it would be shutting down the chain.

The locations that will be shut down by the end of June include:

  • 285 N. Weber Road, Bolingbrook, Illinois
  • 5341 McPherson Boulevard, Fort Worth, Texas
  • 12360 FM 1957, San Antonio, Texas
  • 8726 Potranco Road, San Antonio, Texas
  • 861 W. Stacy Road, Allen, Texas

When the chain was initially launched in 2023, McDonald’s Chairman and CEO Chris Kempczinski said this at that time, as per ABC News:

“This is a $100 billion category that’s growing faster than the rest of (casual dining) and with superior margins. And it’s a space that we believe we have the right to win.''

However, by 2024, he had admitted that the drinks were too complex to be integrated with the regular McDonald’s store operations. With the pilot program, the company experimented with many interesting flavors and technologies.

Although they're closing the outlets, the company said that the chain was not a flop, as it gave them insights into customer preferences and drive-thru lanes that manage customer traffic, and these insights would help them with their brand.

This is what they said:

"We've learned so much, so quickly from the CosMc's test. It allowed us to test new, bold flavors and different technologies and processes – without impacting the existing McDonald's experience for customers and crew."

CosMc's offered drinks, including iced mochas, turmeric lattes, fruit punches, frappes, iced vanilla matches, a prickly pear-flavored slushy with popping candy, and snacks like queso sandwiches, iconic McMuffins, and baked goods.

In early May, the company announced that it would be testing a new beverage menu inspired by the drink served at the spin-off brand at various locations in the market worldwide around the end of this year, as per The Street.

When CosMc's concept was introduced, it was hyped and loved by fans for its laid-back vibe and highly customizable, colorful, and Instagram-friendly drinks, but soon the excitement had worn off.

Edited by Debanjana