Marketing Newscast

(Edited 27 August 2024)

Staying ahead of the beverage world, McDonald's has introduced CosMc's, a small and drink-centred idea set to grab the attention of Gen Z. With a fun and colourful style, CosMc's is getting ready to go head-to-head with Starbucks and making its mark in the beverage industry. Described as a "beverage-led concept", ' CosMc draws inspiration from the past and is named after a friendly space alien character introduced by McDonald's in the 1980s.

CosMc's plans to beat the afternoon slump with its unique caffeinated drinks.

This strategic move focuses on the preferences of Gen Z consumers, who are drawn to vibrant and visually appealing offerings. CosMc's promises an affordable alternative to Starbucks, targeting a younger audience with a menu that keeps them engaged and satisfied.

The company aims to open ten new restaurants in the United States, with the first location in Chicago and the remaining nine in Texas. CosMc aims to become the 'fast food of coffee,' offering a range of bold and refreshing beverages alongside a select menu of tasty treats.

McDonald's coffee journey started in 2008 when Starbucks faced problems during a financial crisis. Starbucks faced hundreds of job losses, leading to the closing of 61 stores, and saw a significant drop in market share. McDonald's responded with an advertising campaign, offering cheaper coffee to attract caffeine lovers. They created billboards with captions stating 'Four Bucks is Dumb' and 'Large is the New Grande' that directly targeted Starbucks, causing people to change their preferences and choose fast food coffee instead.

In 2021, the global beverage market expected a CAGR growth rate of 3.47% from an initial value of US $1,586.389 billion in 2021 and is estimated to reach a target market size of US $1,991.895 billion in 2028. The coffee market alone is estimated to be worth $151.2 billion by 2028. CosMc's entry into this market aligns with the increasing profitability of the beverage industry compared to the food market.

McDonald's as already generated a staggering $13 million daily on coffee alone, revealing the immense potential for growth in the beverage sector.

With 46% of Gen Z reportedly experiencing coffee withdrawal, CosMc's decision to offer energy drinks aligns perfectly with the preferences of this demographic. This move mirrors McDonald's successful Mc Cafe range, which caters to early mornings, while CosMc's aims to tackle the afternoon' 3 pm slump' with its beverage-led concept.

CosMc's menu centres on discovering new and exciting beverages featuring unexpected flavour combinations and bright colours. You can choose from various lemonades, teas, rich blended drinks, and cold coffee options like the Sour Cherry Energy Slush, Tropical Spiceade, and S'mores Cold Brew. You can personalise your experience with numerous customisation options, including popping boba, flavour syrups, energy or Vitamin C shots, and many additional choices.

CosMc's entry into the coffee market demonstrates McDonald's strategic response to evolving consumer preferences, particularly the Gen Z demographic. With a focus on affordability and bold flavours, CosMc's aims to disrupt Starbucks' dominance.