August 2, 2023: What is CosMc and the idea behind it? What is a spin off? Keep reading to learn more about what makes this nostalgic and watch the video inside!
McDonald's is launching a spinoff restaurant chain named CosMc's, according to executives on July 27.
The new concept, CosMc's, will retain McDonald's essence but have its own distinct personality. It will be tested in a few locations within a limited area starting early 2024, as revealed by CEO Chris Kempczinski.
Chris revealed plans for CosMc's which included testing in a few locations within a limited area in early 2024 and providing more details during their investor day in December.
What is a spinoff and how does it work?
A spinoff in business refers to the creation of a new, separate company or division from an existing one. The new entity, called a spinoff, operates independently but often retains some connection to the original company. This can happen when a company decides to focus on specific business areas or simplify its operations by dividing some sections into separate companies. Shareholders of the original company usually receive shares in the newly formed spinoff, allowing them to have ownership in both entities.
What is the idea behind CosMc?
The name CosMc comes from a McDonaldland character from the late 1980s and early 1990s, an alien who has a craving for McDonald's food.
CosMc lands in McDonaldland and encounters Ronald McDonald, Grimace, and the Professor. After some funny moments, they all share a meal, and CosMc praises McDonald's food as "deliciously awesome." Eventually, CosMc retreats into his space suit, which transforms into his spaceship, and leaves.
The decision to bring back CosMc follows the huge success of reviving Grimace. The release of the Grimace Shake resulted in a viral TikTok trend with over 3 billion views, further boosting McDonald's presence on social media and boosted U.S. restaurant sales.
In the past, McDonald's attempts to expand beyond its core business with acquisitions like Donatos Pizza, Boston Market, and a stake in Chipotle Mexican Grill were not successful.
This announcement comes as McDonald's accelerates the opening of new restaurants this year. They had previously stated their plan to invest over 8,224 crore INR to open 1900 new stores worldwide, with more than 400 of them intended for the USA, Canada, the UK, and parts of Europe.