McDonald’s announced on Wednesday that it is piloting a new cafe concept called CosMc’s, which will mostly sell indulgent, highly customizable caffeinated beverages with some food. The first CosMc’s location is now open in Illinois, and nine more are planned in Texas in the coming months.
For many, the news probably raised one main question: Why? Why is a chain that’s basically synonymous with burgers suddenly interested in selling sugary coffee drinks? And why not just add those options to the menu at existing McDonald’s locations, rather than launch an entirely new brand?
And, perhaps most pressingly, why name it CosMc’s?
Those are head scratchers, at first. But there are a few good reasons for McDonald’s to take this approach.
Beverages are a lucrative market, and those wildly customizable coffee drinks – like the kind Starbucks is known for – especially so.
There’s no category that has really performed better this year than specialty coffee,” said David Portalatin, senior vice president and food industry advisor at Circana, who noted that sales of specialty coffee at quick-service restaurants have risen this year compared to last.
But you can’t just plop a bunch of customizable coffee drinks onto the McDonald’s menu. Doing that would slow down kitchens and service times, and could confuse customers.
So to try to break into the market without messing up its regular business, McDonald’s is giving something totally new a shot.
Read more at CNN.com