McDonald's Franchise Creates 'CosMc's' Spinoff Fast Food Concept

Following the viral success of The Grimace Birthday Meal, the global burger franchise is reviving McDonaldland's CosMc as a way to expand beyond its primary business model.

By Luca Piacentini1851 Franchise Managing Editor

Updated 4:16PM • 07/28/23

McDonald's is venturing into a new project by launching a spinoff restaurant chain, CosMc’s. The initiative was announced during the company's second-quarter earnings call, but details remain sparse.

“CosMc’s is a small format concept with all the DNA of McDonald’s, but with its own unique personality,” McDonald’s CEO Chris Kempczinski said.

Trial operations for CosMc’s are planned for select sites in a limited geographical region by early 2024, with further information to be shared on the company's investor day in December.

The new brand, CosMc's, takes its name from a late '80s and early '90s McDonaldland mascot, a part-alien, part-robot named CosMc who loved McDonald's food. This move aligns with the recent revival of another McDonald's mascot, Grimace, which substantially boosted the company's U.S. business. The Grimace Birthday Meal, featuring a vibrant purple milkshake, went viral on social media, leading to a significant increase in restaurant traffic and sales.

This is not McDonald’s first attempt at diversification, however. In the late 1990s, the company purchased Donatos Pizza, Boston Market and a stake in Chipotle Mexican Grill. Within less than a decade, McDonald's divested from all three businesses due to their distracting influence and disagreements with Chipotle over franchising plans and drive-thru lanes. McDonald's hopes this latest venture, CosMc’s, will be a successful step towards expanding beyond its primary business.

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