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McDonald’s to shrink CosMc’s fleet in Texas with three store closures and new plans

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McDonald’s will replace three larger CosMc’s locations in Texas with smaller stores set for 2025

In a move that marks a major shift in its latest venture, McDonald’s has confirmed the closure of three CosMc’s locations in Texas. The closures, announced in a company release on January 13, 2025, are part of a broader strategy to refine its beverage-focused chain, which launched as an answer to popular drink chains like Starbucks and Dutch Bros.

“Since opening CosMc’s, we have had the benefit of testing out different location sizes and setups,” the company said in the release. With the learnings gathered, McDonald’s plans to open two smaller-format CosMc’s stores in Texas by 2025, while closing three of the larger ones that had been transformed into CosMc’s locations. These closures mark a pivotal moment for the chain, which had been testing its concept in several key markets.

The company did not specify which locations in Texas would be closing. However, CosMc’s currently operates two locations in San Antonio and four in the Dallas-Fort Worth area, alongside a single site in Bolingbrook, Illinois. As of now, these Texas locations, along with the one in Illinois, are among the only CosMc’s stores in operation.

CosMc’s made its debut at the end of 2023, with McDonald’s keen to expand into the beverage market. The concept was designed to serve coffee, tea, and other drinks, catering to the growing trend of beverage-focused eateries. San Antonio was chosen as one of the test markets, with its first location opening in August 2024. Since then, the brand has been refining its offerings, with the company emphasising that there is much more to learn about this emerging category.

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“We have just scratched the surface about what we can learn about this growing category,” McDonald’s said in the release. “The tests will continue for the foreseeable future as CosMc’s continues to grow.” This statement suggests that while the downsizing of locations is a key part of their evolving strategy, McDonald’s is committed to expanding the brand further, albeit in a more carefully considered manner.

The new smaller-format stores planned for 2025 are expected to be more streamlined and efficient, responding to customer demand for quick service in a smaller, less complex setting. McDonald’s hopes this shift will better align with evolving consumer habits and improve the efficiency of its operations in an increasingly competitive market.

As the beverage and coffee chain sector continues to grow, McDonald’s decision to refine its approach with CosMc’s may signal a larger trend in the food service industry, where businesses are increasingly focusing on creating specialised, nimble formats that can cater to shifting market demands.

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