New York
CNN
—
Highlighting its long-awaited and strangely secretive CosMc concept, McDonald’s on Wednesday finally shared more about the experimental café, which appears to be its answer to Starbucks.
It was stranger than expected.
Over the summer, McDonald’s tested a new restaurant concept.
We then learned that CosMc’s was named after a little-known McDonald’s character, an alien. We also learned that CosMc “is a bite-sized concept that has everything McDonald’s has but its own unique personality,” said CEO Chris Kempczinski, who discussed the concept during a call with analysts in July.
On Wednesday, Kempczinski finally revealed more during an investor event. Late in the day, after a detailed discussion of the company’s plans for bigger burgers and more restaurants, Kempczinski arrived at CosMc’s, with an introduction from Steve Jobsian.
He told those present: “There is something else.” “Cuz Mac.”
“What would happen if a McDonald’s character from the 1980s was part alien, part surfer, part robot — what would happen if that character opened a restaurant in 2023?” Kempczinski asked.
Answer: The space surfer robot will open a competing restaurant to Starbucks with more fun drinks, and name it after himself.
Cold churro and s’more pies
McDonald’s wants to get into the specialty coffee business, which is an “attractive and fast-growing category,” Kempczinski said. But he added that McDonald’s couldn’t just add a bunch of new drinks to its regular menus, that would complicate kitchen operations and slow down service.
So, she’s testing this new concept to see if people will head to CosMc’s during lazy afternoons to buy a churro frappe, a cold s’mores, a chai frappe, or another customizable drink. Maybe they pair it with cookies, ice cream, or one of a few sandwiches.
With CosMc’s, McDonald’s appears to be looking at Starbucks’ playbook — an emphasis on cold, sweet drinks that can be adjusted to taste. Cold drinks make up the majority of Starbucks’ sales. In November, Starbucks said personalized latte and drink prices helped lift the coffee chain’s U.S. sales in the quarter ending Oct. 1.
Kempczinski cautioned investors against getting excited: CosMc is still just a test. So far, there is one location opening in Bolingbrook, Illinois, later this week. During the first half of next year, McDonald’s plans to open nine more locations In Texas.
McDonald’s sees an opportunity for coffee not only in limited testing, but at its regular locations as well.
“Coffee is a very attractive category,” Joe Semples, who oversees markets where McDonald’s has licensed its brand, said earlier Wednesday. “It’s a large company, very profitable, growing rapidly, and clearly has a strong habitual behavior.”
When it comes to McAfee, “we have not yet realized our full global potential,” Sembles said.
To strengthen the company’s coffee business, “we will establish McCafé as part of our core menu offerings and as our sole coffee brand at McDonald’s,” he said, adding that the company will also simplify the equipment it uses to ensure the coffee tastes consistent. via websites.
In addition, he said the company is working on a cold brew plan. Here too, McDonald’s may learn from Starbucks’ wealth of cold drinks.
