McDonald’s testing new store format

CHICAGO — McDonald’s Corp is initiating a 10-store test with one site in Bolingbrook, Ill., and the rest in Texas of a new small-format concept that will focus on customizable beverages, sweet and savory treats, sandwiches as well as feature more familiar menu items like the Egg McMuffin and McFlurry.

The concept has been in development for more than a year and will target a $100 billion opportunity, according to the company.

“Customer love for our brand is stronger than any time in our history,” said Christopher J. Kempczinski, president and chief executive officer of McDonald’s, during the company’s Dec. 6 investor day. “This gives us permission to stretch the reach of the valuable McDonald’s brand into new areas to grow the business.

“One area of focus has been identifying ways for McDonald’s to participate in attractive and fast-growing categories. We’ve homed in on specialty beverages and coffee, which play predominantly in the afternoon beverage pickup occasion where we are under indexed.”

CosMc’s stores are scheduled to roll out during the first half of 2024 and the company plans to evaluate the results for at least a year.

Photo: McDonald's Corp.

The company said CosMc’s menu is “rooted in beverage exploration” and will feature a range of lemonades, teas, cold coffee and blended beverages. Beverage concepts discussed by the company included churro frappes, S’mores cold brew, a Sour Cherry Energy Burst, Tropical Spiceade and a Blueberry Ginger Boost as well as others. Customers will have the option of adding popping boba, flavor syrups, energy and vitamin C shots, and other ingredients to their order.

The concept’s food menu will include an avocado tomatillo sandwich, spicy queso sandwich, McPops, pretzel bites, hash brown bites, sundaes, brownies, cookies as well as Egg McMuffin sandwiches and McFlurrys.

Mr. Kempczinski emphasized during the presentation that this is just a test.

“… We're talking about 10 stores, okay?” he said. “So, let’s not get too excited about it. The big story isn’t about CosMc’s per se. The big story is what it says about McDonald’s and our potential.

“To think a little over a year ago, this was just an idea. And this week, we're opening the first test site. We're innovating, testing and learning with speed. And we'll continue to explore other ideas that can take advantage of our unique combination of assets, opening new growth opportunities and extending our brand into new areas.

“Imagine the possibilities if McDonald’s then connected these great innovations to one of the largest consumer platforms in the restaurant industry enabled by the industry’s best restaurant operations platform and modern and systems and tools that unlock speed and innovation across the company.”