In other news, McDonald's is also supersizing its burgers and bringing back its chicken wraps. The changes come amid inflation hitting the fast-food industry hard and the rise of the "Ozempic effect," a weight-loss drug that could potentially decrease customers' appetite for fast food. The launch of CosMc's could also be a bid for McDonald's to boost its app and loyalty program.
Key takeaways:
- McDonald's is launching a new restaurant concept, CosMc's, focused on cold, customizable beverages to compete with Starbucks. The first location has opened in a Chicago suburb, with 10 more scheduled to open by the end of 2024.
- The strategy for CosMc's is to address the "3 pm slump" that fast-food chains face between lunch and dinner, a time slot that has been successful for beverage-focused chains like Starbucks.
- McDonald's is also supersizing its burgers and bringing back its chicken wraps in response to competitors entering the snack-wrap space.
- The changes come amid inflation hitting the fast-food industry hard, making the once-affordable food option more expensive. McDonald's dollar menu is no longer a thing and some suggest it's cheaper to cook at home.