McDonald's shuts down standalone beverage concept amid strategy shift

UPDATED: May 24, 2025 03:50 IST

McDonald’s Corporation has announced it will be closing all five of its CosMc’s stores, a beverage-focused spinoff brand launched in 2023. The fast-food giant confirmed on Friday that the closures will begin in late June, marking the end of its standalone experiment in the rapidly growing specialty drink market.

Testing the Waters of the Drink Segment

As reported by Reuters, The CosMc’s locations, including one in San Antonio, Texas, were opened to test innovative beverage flavours and new technologies without interfering with operations at existing McDonald’s outlets. According to the company, the purpose was to explore opportunities in the booming beverage sector — an area McDonald’s believes it is well-positioned to succeed in.

CosMc’s-Inspired Drinks Headed to McDonald’s Menu

While the CosMc’s stores will be shutting down, McDonald’s said it will not abandon the concept entirely. Select "CosMc’s-inspired" beverages will be rolled out at hundreds of McDonald’s locations across the United States. The company operates over 14,000 restaurants in the U.S. and intends to use this wider platform to gauge customer interest in these new offerings.
Earlier this year, McDonald’s revealed plans to form an internal team focused solely on beverage innovation. This move signals the company's intent to compete more aggressively in a space traditionally dominated by brands offering complex, high-margin drink options.

App to Be Discontinued

As part of the shutdown, the CosMc’s app — used for ordering and promotions — will also be deactivated in the coming weeks. The closures will take place gradually, with all locations expected to cease operations by mid-2024.

Restaurant industry consultant John Gordon noted that McDonald’s has been relatively quiet in the specialty beverage space compared to competitors. However, he acknowledged that drinks offer higher profit margins than many food items and said McDonald's interest in expanding this segment is a strategic move.

( With inputs from Reuters)

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