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McDonald’s starts coffee chain to rival Starbucks

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McDonald’s is venturing into a new restaurant format called CosMc’s, aiming to compete with coffee giants like Starbucks. The fast-food giant plans to open 10 CosMc’s restaurants in the first half of the next year, starting with locations in Chicago and Texas.

CosMc’s is designed to cater to afternoon snackers, offering customizable drinks and treats to capture a share of the market currently dominated by competitors. The move is part of McDonald’s strategy to diversify its menu and service times to keep up with the changing preferences of consumers.

The CosMc’s menu features a variety of complex drinks, including a churro frappe, pear-flavored slush, and a turmeric latte. The restaurant will also serve snacks like pretzel bites and Egg McMuffins. The small-format CosMc’s restaurants will be strategically located to fill the mid-afternoon sales slump observed by McDonald’s.

McDonald’s is also testing new systems at CosMc’s, including drive-thru lanes managing traffic based on the complexity of orders. The company aims to leverage the explosive growth of delivery demand by getting closer to customers, ensuring faster and hotter food delivery.