A McDonald’s spin-off restaurant called CosMc’s opened in one location to tap into a new market that McDonald’s has missed, and it drove three times more traffic than the original McDonald’s restaurant.
CosMc’s Surges Ahead
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McDonald’s innovative CosMc’s spinoff, specializing in whacky drinks, is outpacing traditional Mickey D’s in attracting younger customers.
A Beverage-Led Evolution
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In December, McDonald’s introduced CosMc’s, a unique specialty drinks cafe, debuting in Bolingbrook, Illinois, with nine more locations slated for this year.
Bolingbrook’s Impressive Debut
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The Bolingbrook CosMc’s surpassed expectations, witnessing over double the visits of an average McDonald’s chainwide in its first month.
Compact and Effective
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CosMc’s draws more customers by using a space system that saw three times the amount of customers per square foot than a regular McDonald’s.
Drive-Thru Challenges
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RJ Hottovy, Placer.ai’s head of analytical research, admitted that CosMc’s location faced overflow challenges, especially in the Drive-thru lanes.
Meeting High Demand
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The bustling drive-thru lanes show potential for more revenue for CosMc’s, “We saw quite a bit of demand,” said Hottovy.
Customer Spill Suggests More Demand
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“There were so many people in the drive-thru lane that if they had more capacity, the traffic numbers would have been a lot higher,” Hottovy continued, noting that customers were spilling out of the lanes.
Attracting a Younger Crowd
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CosMc’s success is notable among younger demographics (22-29 year-olds) compared to the traditional McDonald’s which sees a broader range of ages attend its restaurants.
Bolingbrook Traffic Surge
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The tremendous response in Bolingbrook has sparked some anticipation for the expansion of CosMc’s across the country, so keep an eye out!
Specialty Drinks Focus
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CosMc’s focuses on specialty drinks, tapping into a market that’s becoming increasingly popular among the younger demographic. Think of the Fanta Ice Blast craze at the movie theatre!
Beyond Big Macs and Fries
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The success of CosMc’s is still a work in progress, “I think this really is a test and learn concept, one to track younger audience and test menu innovations,” Hottovy mentioned.
A Big Buzz And New Faces
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“If nothing else,” Hottovy continued, “CosMc’s is creating a tremendous amount of buzz and attracting new customers.”
McDonald’s In No Danger
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Hottovy argued that it’s not in danger of being more popular than the original McDonald’s restaurant, “It’s just one location for now, so doesn’t look like it’s cannibalizing McDonald’s at this point,” he pointed out.
Tapping Into A New Market
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“But bringing in incremental visitors, the group that wasn’t coming into McDonald’s as much,” Hottovy said, suggesting that the new store is generating brand new customers.
A Long Road Ahead
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There’s only one CosMc’s location, compared to about 41,000 McDonald’s restaurants worldwide, so it’s got a long way to go.
McDonald’s Looking To Expand
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The road ahead for CosMc’s seems even more distant as McDonald’s looks to expand its number of locations to 50,000 globally by 2027.
No Traffic? No Problem
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Despite a dip in traffic to McDonald’s restaurants, the chain experienced an increase in sales by 8.1%.
Inflation Drives Sales
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One reason for this sales increase could be the rising fast-food costs in the U.S., especially in expensive states such as California.
The $18 Big Mac
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One McDonald’s menu recently went viral in Darian, Connecticut, as the disgruntled customer posted a Big Mac meal that cost a whopping $18!
The Future of Fast Food?
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Despite the increase in fast-food prices, it’s clear that CosMc’s has the potential to become a worthy spinoff to the legendary McDonald’s chain. 9 more locations are set to be erected by the end of the year.
The post McDonald’s Spin-Off Drives Triple the Traffic first appeared on Swift Feed.
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.