Restaurants: McDonald’s to Test CosMc’s Beverages in Existing Restaurants
- InsightTrendsWorld
- May 7
- 10 min read
Why Is This Topic Trending?
Beverage Market Opportunity: The specialty beverage sector is valued at $100 billion, and McDonald’s is strategically expanding its presence to capture a larger share.
Consumer Engagement & Gen Z Focus: McDonald’s aims to leverage its existing restaurant network to introduce CosMc’s-inspired beverages to tap into the popularity of younger consumers, particularly Gen Z, who visit quick-service restaurants frequently.
Increased Profitability Potential: Beverages, especially specialty ones, are considered high-margin products, making them an attractive category for McDonald’s to further invest in.
Strategic Focus on Customization: McDonald’s has learned from CosMc’s consumer preferences, finding that while some customization is desired, a majority prefer pre-designed drinks with minimal personal modification.
Fast Execution & Innovation: The new organizational structure (Restaurant Experience Team) helps McDonald's bring new products and concepts to market quickly, including the testing of beverages in existing restaurants.
Overview
McDonald's is expanding its CosMc’s beverage brand after its initial successful debut in 2023, which saw long lines and high consumer interest. The company plans to introduce CosMc’s-inspired beverages to its nearly 13,569 U.S. restaurants in collaboration with franchisees. This move is part of McDonald's broader strategy to strengthen its position in the $100 billion specialty beverage market, which has been growing due to innovation in cold drinks and Gen Z's increasing influence on dining habits.
Detailed Findings
CosMc’s Popularity & Expansion:
McDonald's launched CosMc’s as a standalone concept, which has already received strong consumer interest, particularly from Gen Z.
The standalone stores have provided valuable insights into consumer preferences, especially in the area of beverage customization.
Key Learnings from CosMc’s Rollout:
Customization Preferences: While some customization is desired, most customers want drinks that are 80% pre-designed with minimal personalization.
Food Integration: Consumers expect food to be part of the beverage offering, suggesting that McDonald’s can leverage food and beverage pairings to drive additional sales.
Consumer Interest in Emerging Categories: There is a growing interest in emerging beverage categories such as energy drinks and flavored coffees, which McDonald's has tapped into with its expanded CosMc’s menu.
Strategic Focus on Beverage Category Growth:
McDonald’s plans to test new beverages inspired by CosMc’s in existing locations to better understand their impact on customer traffic and food attachment.
Beverage growth is identified as a key profit pool for McDonald's, with room for increased market share in categories like energy drinks, cold brews, and flavored lattes.
Consumer Engagement with CosMc’s:
McDonald’s is focusing on catering to Gen Z’s desire for unique, customizable beverages and high-quality, Instagram-worthy drink options.
Through CosMc’s, McDonald’s can also experiment with newer formats, such as smaller, tech-focused prototypes of its beverage offerings.
Key Takeaway
McDonald’s is positioning itself to capitalize on the growing specialty beverage market by expanding CosMc’s drink offerings in existing locations. This strategy leverages the company’s insights into consumer preferences for convenience and customization while maintaining its core focus on driving both beverage and food sales.
Main Trend — "Beverage-Driven Quick Service Innovation"
A strategic focus on the expansion of beverage offerings within quick-service restaurants, combining beverage innovation with food pairings to drive traffic and increase average ticket size.
Description of the Trend (Beverage-Driven Quick Service Innovation)
This trend focuses on the growing emphasis of specialty beverage offerings in quick-service restaurants (QSRs) as a means to enhance customer engagement, drive incremental revenue, and compete in the lucrative beverage sector. McDonald's CosMc’s initiative exemplifies this trend by testing and introducing innovative, customized drinks in its existing locations.
What Is Consumer Motivation?
Desire for Customization: Consumers increasingly prefer beverages that offer a balance of pre-designed recipes with customizable options.
Convenience and Speed: Quick-service consumers prioritize convenience and speed in their beverage choices.
Social Media Appeal: Beverages that are visually striking or unique (Instagram-worthy) resonate with younger, image-conscious consumers, especially Gen Z.
What Is Driving the Trend?
Rising Popularity of Beverages: The beverage sector, particularly cold and specialty drinks, is growing rapidly in the QSR industry, driven by consumer demand for premium drinks.
Consumer Preferences: Younger consumers are increasingly attracted to unique and customizable beverage options that align with their personal tastes and social media sharing habits.
Profit Potential: Beverages, especially specialty drinks, offer high-profit margins, motivating brands to focus on this category for growth.
Motivation Beyond the Trend
Beyond profitability, McDonald’s is trying to deepen consumer loyalty by offering beverages that complement its core food offerings. This cross-category integration ensures that drinks don’t just stand alone but enhance the overall customer experience, leading to higher food attachment rates.
Description of Consumers the Article Is Referring To
Age: Primarily Gen Z and Millennials, who are active users of social media and quick-service consumers.
Gender: Balanced gender demographics, with a slight skew toward younger female consumers interested in trendy, customizable beverage options.
Income: Middle-income households, particularly those who prioritize convenience and value in quick-service dining.
Lifestyle: Fast-paced, socially connected, and value-conscious, with a strong preference for visually appealing food and beverages that align with their lifestyle choices.
Conclusions
McDonald’s entry into the beverage sector with CosMc’s signals a larger strategic play to capture market share in a high-growth, profitable category. The company’s ability to leverage its massive restaurant footprint to introduce innovative, beverage-centric menu items will likely provide significant incremental growth opportunities.
Implications for Brands
Diversification of Offerings: Brands in the QSR space should consider expanding their beverage portfolios to include specialty drinks that appeal to younger, customization-seeking consumers.
Cross-Selling Opportunities: Pairing beverages with food to drive higher average ticket sizes can be a profitable strategy.
Branding & Social Appeal: Focus on creating visually appealing, Instagram-worthy beverages that resonate with younger, image-conscious consumers.
Implications for Society
Shift in Dining Culture: The growing focus on beverages in QSRs may alter dining habits, especially for younger consumers who prioritize convenience, customization, and experience.
Economic Impact on Smaller Chains: Smaller, independent restaurants may struggle to compete with large chains like McDonald’s that can scale beverage innovations quickly and efficiently.
Implications for Consumers
Increased Customization: Consumers will have more access to customizable, high-quality beverages at quick-service restaurants.
Wider Selection: As QSRs expand their beverage options, consumers will enjoy greater variety and more affordable specialty drink choices.
Implication for Future
The beverage segment within quick-service restaurants is expected to continue expanding, with more chains adopting a beverage-centric model. Brands that successfully integrate beverages with food will likely lead in consumer engagement, traffic, and profitability.
Consumer Trend
“Beverage-Centric Quick Service”Consumers are increasingly drawn to specialty beverages in quick-service restaurants, with a growing preference for customizable, Instagram-worthy drink options that complement their dining experience.
Consumer Sub-Trend
“Customizable Premium Beverages”The rise in popularity of customizable and premium beverages, such as iced lattes, cold brews, and energy drinks, reflects consumer desire for personalized drink experiences.
Big Social Trend
“Social Media-Driven Food and Beverage Trends”Instagram-worthy food and drinks are growing in influence, with younger consumers using social media to drive food and beverage choices.
Worldwide Social Trend
“Global Beverage Revolution”As consumers around the world seek more diverse beverage options, quick-service restaurants are expanding their offerings to include a wider range of specialty drinks tailored to local tastes and preferences.
Social Drive
“Visual Appeal & Social Sharing”Consumers, especially younger demographics, are motivated by the visual appeal of food and beverages, leading them to share their experiences online, which influences broader consumption patterns.
Learnings for Brands to Use in 2025
Visual Appeal Matters: Invest in beverage offerings that are not only delicious but visually stunning and shareable.
Beverages as Brand Extensions: Treat beverages as an opportunity to extend brand identity and engagement.
Integration of Beverages and Food: Use beverages as a way to drive incremental food sales by pairing them strategically with menu items.
Strategy Recommendations for Brands to Follow in 2025
Develop Unique Beverage Offerings: Introduce limited-edition or seasonal beverages that cater to consumer tastes for novelty and customization.
Expand Beverage Customization Options: Offer drinks that allow for personalization, but keep recipes simple and easy to execute for operational efficiency.
Leverage Social Media: Create campaigns that emphasize the visual and experiential aspects of your beverages, encouraging social sharing among consumers.
Final Sentence (Key Concept)
McDonald’s beverage innovation, exemplified by CosMc’s, marks a significant move to capitalize on the profitable and growing specialty beverage market, with customization, food pairings, and social media engagement playing pivotal roles.
What Brands & Companies Should Do in 2025 & How
Invest in Beverage Innovation: Focus on creating customizable, premium beverage offerings that appeal to younger, trend-sensitive consumers.
Leverage Data & Consumer Insights: Use customer feedback and beverage sales data to continually refine and optimize offerings.
Scale Beverage Offerings: Expand beverage options in existing quick-service locations to drive foot traffic and boost sales.
Final Note
Core Trend: "Beverage-Centric Quick Service" — A shift towards beverage-focused innovation within quick-service restaurants, blending customization and food pairings for higher customer engagement.
Core Strategy: "Innovative Beverage Expansion" — Creating unique, customizable, and Instagram-worthy drinks that resonate with younger, image-conscious consumers.
Core Industry Trend: "Social Media-Driven Consumerism" — Visual appeal and social media influence driving consumer choices in food and beverages.
Core Consumer Motivation: "Customization & Experience" — Consumers increasingly seek personalized, experience-driven food and beverage options that offer both convenience and indulgence.
Final Conclusion: Brands that effectively integrate beverage innovation with food offerings, tailored to younger, experience-driven consumers, will thrive in the competitive QSR market.
Core Trend Detailed — "Beverage-Centric Quick Service Innovation"
Description
The "Beverage-Centric Quick Service Innovation" trend focuses on the growing importance of beverages within quick-service restaurants (QSRs), as brands increasingly introduce unique, customizable, and specialty drinks to expand their market share. McDonald's CosMc's brand exemplifies this trend, where beverage offerings go beyond traditional drinks to become key drivers of both foot traffic and revenue. This shift marks a major move into a rapidly growing $100 billion beverage category.
Key Characteristics of the Trend (summary)
Customization and Personalization: Customers are increasingly looking for customizable beverages that offer both pre-designed recipes and options for personal tweaks.
Diverse Offerings: From iced lattes to energy drinks and creative shakes, QSRs are diversifying their beverage menus to cater to a wide range of tastes.
Profitability Focus: Specialty drinks are high-margin items, making them a lucrative category for QSRs to target for growth.
Food and Beverage Integration: Consumers expect to purchase both food and beverage offerings together, creating opportunities for upselling and increasing average ticket size.
Social Media Influence: Instagram-worthy drinks with visually appealing colors, toppings, and unique ingredients are popular with younger consumers, particularly Gen Z.
Market and Cultural Signals Supporting the Trend (summary)
Growing Specialty Beverage Market: The global market for specialty beverages, including iced lattes, cold brews, energy drinks, and frappes, has been growing rapidly.
Changing Consumer Preferences: Younger consumers, particularly Gen Z, are driving demand for customizable, high-quality beverages that are both Instagrammable and convenient.
Tech-Enabled Customization: Advances in app-based ordering and beverage personalization, supported by the growth of mobile apps and digital ordering, are enabling quicker and more customized customer experiences.
Economic Pressures: As consumers increasingly tighten their belts due to inflation, beverages offer a higher-margin category that provides opportunities for value-focused innovations without sacrificing profitability.
Health and Wellness Focus: There is a growing interest in healthier beverage options, like plant-based milk or energy-boosting drinks, that align with wellness trends.
How the Trend Is Changing Consumer Behavior (summary)
Increased Focus on Beverages: Consumers are becoming more selective about their beverage choices, opting for drinks that offer both value and customization.
Decreased Frequency of Dining Out: With economic pressures, some consumers are dining out less frequently and choosing beverages that they can customize and enjoy from QSRs rather than at home.
Cross-Category Purchases: Consumers expect drinks to be paired with food, increasing the average transaction size as people are more likely to purchase both a meal and a drink at the same time.
Social Media Influence: Drinks that look visually appealing and shareable on social media are gaining popularity, with consumers opting for beverages that fit their lifestyle and online persona.
Implications Across the Ecosystem (summary)
For Brands and CPGs
Innovation in Beverage Products: Brands need to focus on creating unique, high-margin beverages that cater to younger, customization-seeking consumers.
Brand Partnerships: Collaboration between beverage producers and QSRs to create exclusive drink options can drive consumer interest and excitement.
Expansion into Healthier Categories: There’s a growing demand for healthier beverage options, such as plant-based drinks and energy-boosting options.
Customization Technology: CPGs can help QSRs by providing tech solutions that enable seamless beverage customization through apps and digital ordering systems.
For Retailers
Beverage-First Offerings: Retailers should consider expanding their beverage offerings to include more premium, customizable, and health-conscious options that cater to current consumer trends.
Increased Focus on Experience: In-store experiences should incorporate beverage-centric menus and promotions that encourage customers to try new drinks, potentially increasing foot traffic.
Leveraging Digital Tools: Retailers should use mobile ordering, rewards apps, and digital marketing to enhance customer engagement and drive beverage sales.
For Consumers
Customization Choices: Consumers now expect their beverages to be highly customizable, with options for personalization that align with their tastes and dietary needs.
New Dining Habits: Consumers are increasingly seeking convenience and variety in their beverage choices, driving them to quick-service restaurants for drinks they can enjoy while on the go.
Value-Seeking: Despite the growing number of beverage options, consumers still seek value, particularly when it comes to high-quality drinks that can be customized without premium pricing.
Strategic Forecast
Short Term (6–12 months): QSRs will continue experimenting with beverage offerings, including testing new drink menus in their existing locations, as McDonald’s plans to do with CosMc’s-inspired beverages.
Mid-Term (12–24 months): As consumer demand for customized beverages grows, expect more QSRs to refine their beverage categories and expand into higher-margin offerings like energy drinks, iced lattes, and health-focused drinks.
Long-Term (2+ years): Beverage innovation will become a cornerstone of QSR strategy, with companies focusing on diversifying and expanding their beverage offerings to remain competitive in the space.
Final Thought
"Beverage-Centric Quick Service Innovation" is reshaping the QSR industry, offering both growth potential and significant profit opportunities. McDonald's entry into the beverage space through CosMc's is just the beginning of a broader industry shift, where beverages increasingly complement food offerings, driving incremental sales and enhancing the overall dining experience.
Core Trend
Beverage-Centric Quick Service Innovation: An increasing focus on specialty beverages as key drivers of revenue and customer engagement within quick-service restaurants. This trend emphasizes the growth of premium, customizable, and Instagram-worthy drinks that appeal to younger, socially connected consumers.
Core Strategy
Beverage-First Menu Expansion: Expand beverage offerings to include customizable and specialty drinks that appeal to both Gen Z and Millennials. Incorporate health-conscious options, while ensuring that beverages pair well with the food menu.
Core Industry Trend
Customization and Experience: Customizable, premium beverages are becoming a mainstay in the QSR industry, driven by consumer demand for tailored experiences and high-quality, shareable drinks.
Core Consumer Motivation
Desire for Convenience and Customization: Consumers seek convenience in their beverage choices, preferring quick-service drinks that can be easily customized to their taste preferences and dietary needs.
Final Conclusion
As the beverage sector within QSRs grows, brands that successfully combine customization, premium offerings, and food pairings will lead the market, capitalizing on both consumer demand for personalization and the profitability of high-margin drinks.
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