McDonald's concept CosMc's could win the coffee war against Starbucks and Dunkin'

The promise of galactic beverages drew hundreds to the Chicago suburb of Bolingbrook, Illinois, last Thursday. Customers queued for hours; some offered bribes to shorten their wait. Lines of cars snaked around the village of fewer than 80,000 residents, all in pursuit of one thing: a specialty sip from CosMc's, McDonald's new beverage concept store.

The restaurant, which was announced only a day before its soft opening on 7 December, is "rooted in beverage exploration". Unlike a standard McDonald's storefront, CosMc's is drive-through only; the new approach also leans into what the company calls "bold and unexpected flavour combinations": think specialty lemonades, cold-coffee concoctions and signature slushes. McDonald's plans to open approximately 10 pilot locations in the US by the end of 2024.

It's entering a crowded-and-growing market of fast-coffee heavyweights. According to data from Allegra World Coffee Portal, an insights platform focused on the coffee industry, the branded-coffee market currently stands 7% above its pre-pandemic size, with market leaders Starbucks and Dunkin' projected to reach 16,144 and 9,434 US stores in 2024, respectively.

These numbers may be daunting for a new player in the fast-coffee space – but experts say CosMc's may be poised to carve out its own place in the highly competitive landscape.

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