McDonald’s has announced it will shut down its CosMc’s spinoff next month, just two years after launching the alien-themed specialty beverage concept. All five CosMc’s locations will close at the end of June.
CosMc’s, named after a lesser-known McDonald’s alien character, debuted in 2023 as a response to the rising popularity of specialty coffee and drink chains such as Dutch Bros., Scooter’s, and Swig, which have gained traction particularly among Gen Z consumers.
The menu focused on sweet drinks and light snacks, aiming to attract customers during afternoon lulls. McDonald’s created the spinoff partly because executives believed offering customizable drinks within regular McDonald’s locations would be too demanding for staff. However, fewer customers customized their beverages than anticipated.
Economic pressures also influenced the decision to close CosMc’s. McDonald’s recently reported its second straight quarter of declining sales, as consumers pulled back on spending amid economic uncertainty. This has led company leaders to prioritize strengthening their core offerings.
In a statement, McDonald’s said CosMc’s was launched to help the brand compete in the fast-growing beverage market and to experiment with new flavors and technologies without disrupting the usual McDonald’s experience for customers and employees.
Although the standalone CosMc’s outlets will close, some of its menu items are expected to live on. CEO Chris Kempczinski revealed in a recent earnings call that McDonald’s plans to test new customizable drinks inspired by CosMc’s with select franchisees later this year.
The five CosMc’s locations—four in Texas and one in Illinois—will close in late June. Along with the physical stores, the separate CosMc’s app and loyalty program will also be discontinued.