The economic slowdown that has engulfed states like Texas has taken a real toll.
Chain restaurants like Dairy Queen are taking it on the chin…
And even McDonald’s is suffering – to such an extent that corporate took the unusual step of closing five stores (four in Texas, one in Illinois) recently.
These stores were all part of the CosMc’s brand, which was a test McDonald’s launched in 2023 targeting higher-price point customers with custom, specialty drinks (cold brews, flavored teas), high-quality breakfast and snack items, and a drive-thru only format.
Think of it a bit like Starbucks, but with all the efficiency and speed you’ve come to expect from McDonald’s.
CosMc’s was a big success initially, but things petered out until McDonald’s made the painful decision to end the test entirely. (What a loss, especially for Texas!)
One of the major reasons for the test ending was that consumers have gotten a lot more price sensitive as recession fears have mounted and unemployment has ticked up.
That makes specialty drinks a lot harder to justify, especially at the volume that McDonald’s would need for the concept to be interesting.
It’s a real loss, for sure, and unfortunately a sign of the times as the trade war continues to harm US businesses and the broader economy.
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