Starbucks Wins Rivalry as MacDonalds Shuts CosMc’s

McDonald's experimental beverage company CosMc's is closing less than a year after its launch, putting an end its competition with Starbucks

Skerdian Meta•Monday, May 26, 2025•2 min read

CosMc’s Closure Signals McDonald’s Retreat from Starbucks-Style Model

Quick overview

McDonald's has announced the closure of its experimental beverage chain CosMc's, just a year after its launch.
The venture aimed to capture the afternoon snacking market but struggled to gain customer traction against established competitors like Starbucks.
CosMc's featured innovative menu items and technology but ultimately failed to achieve commercial viability.
The closure highlights the challenges major food brands face when attempting to disrupt well-established markets.

McDonald’s experimental beverage company CosMc’s is closing less than a year after its launch, putting an end to its competition with Starbucks.

CosMc’s Closure Marks the End of a Bold McDonald’s Venture, Starbucks Victory

In a swift reversal, McDonald’s has confirmed the closure of its fledgling concept restaurant, CosMc’s, bringing an abrupt end to what was once touted as a bold play to disrupt the beverage and snack space dominated by brands like Starbucks and Dutch Bros. Initially unveiled two years ago, CosMc’s was McDonald’s answer to mid-day sales slumps, aimed at capturing the attention of afternoon snackers with a focus on customizable drinks and a curated menu of treats.

The concept featured novel items such as churro frappés and boba drinks, alongside staples like McFlurries and Egg McMuffins. CosMc’s also served as a testing ground for new technology, including an AI-driven drive-thru system that adjusted service flow based on order complexity. While the venture garnered interest for its innovation, it struggled to deliver on commercial viability.

McDonald’s opened its first CosMc’s location near its Chicago headquarters, followed by seven outlets in Texas. However, just five remain in operation today, and all are scheduled to close by the end of June. The dedicated CosMc’s mobile app will also be discontinued.

Afternoon Slump Strategy Falls Short

The fast food giant had hoped to strengthen its foothold during non-peak hours, where sales typically lag behind breakfast, lunch, and dinner spikes. However, customer traction failed to meet expectations, raising questions about menu appeal, brand fit, and the ability to challenge more entrenched coffeehouse competitors.

Despite U.S. stock markets being closed today, McDonald’s shares (NYSE: MCD) still slipped roughly $3. Meanwhile, Starbucks (NASDAQ: SBUX) remained largely flat, trading steadily between $84 and $85 per share—an indication that investors may view the news as a failed sideline project rather than a broader threat to McDonald’s core business.

Conclusion: The closure of CosMc’s illustrates the difficulty even major food giants face when trying to disrupt a well-established market. While the effort brought some creative experimentation, it ultimately fell short of transforming McDonald’s afternoon sales landscape. As the company returns its focus to core offerings, the beverage battlefield remains firmly in the grip of coffeehouse leaders.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.