McDonald’s to Shut Down CosMc’s, Its Beverage-Centered Spinoff

McDonald’s is pulling the plug on its CosMc’s spinoff just two years after the alien-themed spinoff took off.

The chain announced Friday that it’s closing all five locations next month. CosMc’s, named after a little-known alien McDonald’s character, opened in 2023 in response to fast-growing specialty coffee and beverage chains like Dutch Bros., Scooter’s and Swig that have become popular with Gen Z consumers.

CosMc’s menu consisted of sweet drinks and light snacks, with the company hoping customers would visit during their afternoon slump. A spinoff was launched because executives thought the customizable drinks would be too much of a strain on its McDonald’s employees, but fewer people customized their drinks than the company thought.

Times have also changed since CosMc’s opened: McDonald’s recently reported its second consecutive quarter of sales declines as customers pulled back their spending amid economic uncertainty. That likely prompted McDonald’s leadership to focus instead on fixing its core product.

McDonald’s said in a statement that CosMc’s was created because the chain “had the right to win in the fast-growing beverage space” and allowed it to “test new, bold flavors and different technologies and processes – without impacting the existing McDonald’s experience for customers and crew.”

Although the CosMc’s locations will disappear, some of the menu items won’t. CEO Chris Kempczinski said in its earnings call this month that the chain is testing new customizable drinks inspired by CosMc’s with some franchisees later this year.

CosMc’s locations — four in Texas and one in Illinois — will close at the end of June with their standalone app and loyalty program also being discontinued, the company said.