Latest news with #DavidHenkes
Miami Herald
6 days ago
- Business
- Miami Herald
McDonald's Closes Restaurants, Scraps Starbucks Rival
McDonald's has announced it is closing its CosMc's restaurants, which had been described as an attempt to rival Starbucks, with "CosMc's-inspired flavors" instead being deployed to conventional McDonald's sites as part of an "upcoming U.S. beverage test." Newsweek contacted McDonald's for comment on Monday via email outside of regular office hours. McDonald's announced it was launching standalone CosMc sites, named after a McDonaldland alien mascot, in 2023 with restaurants planned in Illinois and Texas. CosMc focused heavily on hot and cold drinks in a move the BBC suggested was aimed at competing in the "fast-coffee space" with companies such as Starbucks and Dunkin' Donuts. Closing its CosMc sites suggests McDonald's has failed to build a competitive rival to these big hitters in the beverage market, though the company insists it will be applying lessons learned to its other restaurants. In a statement released on May 23, McDonald's said that from late June it would be "closing all standalone pilot CosMc's locations on a rolling basis and discontinuing the CosMc's app." However, the company also said that, "building on the insights" it gained from the CosMc pilot, "CosMc's-inspired flavors will be landing at McDonald's as part of the upcoming U.S. beverage test." According to ABC News, McDonald's ended up opening eight CosMc's restaurants or drive-through sites, one near its Chicago headquarters and the other seven in Texas, with an initial plan to open 10 in the Lone Star State. However only five of the CosMc's branches were still open when Friday's announcement was made. The locations focused heavily on drinks such as churro frappé and boba drinks, with a smaller selection of food including McDonald's classics like the McFlurry and McMuffin. However, the launch in December 2023 coincided with a boycott campaign targeted at McDonald's after a franchise in Israel said it would donate meals to the Israel Defense Forces following the October 7 2023 Hamas attacks. In its statement, McDonald's said: "What started as a belief that McDonald's had the right to win in the fast-growing beverage space quickly came to life as a multi-location, small format, beverage-focused concept. It allowed us to test new, bold flavors and different technologies and processes without impacting the existing McDonald's experience for customers and crew. On X, formerly Twitter, David Henkes, a food and beverage industry expert, wrote: "Some of the least surprising news, particularly since they're now rolling many of the innovations into the broad McD system. But that's what an innovation incubator is for." The remaining CosMc's restaurants will now close down. It remains to be seen how many of their products will be introduced to mainstream McDonald's branches as part of the company's upcoming "beverage test." Earlier this month, McDonald's announced it was seeking to recruit "up to 375,000 restaurant employees" across the United States over the summer of 2025. Related Articles Saudi Arabia Rolls Out Custom Mobile McDonald's for Trump VisitMcDonald's Announces Major Hiring BlitzMother's Day 2025: See List of Restaurants With Free Food and DiscountsTeacher Appreciation Week 2025: Few Days Remain to Get Deals, Freebies 2025 NEWSWEEK DIGITAL LLC.
Newsweek
6 days ago
- Business
- Newsweek
McDonald's Closes Restaurants, Scraps Starbucks Rival
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. McDonald's has announced it is closing its CosMc's restaurants, which had been described as an attempt to rival Starbucks, with "CosMc's-inspired flavors" instead being deployed to conventional McDonald's sites as part of an "upcoming U.S. beverage test." Newsweek contacted McDonald's for comment on Monday via email outside of regular office hours. Why It Matters McDonald's announced it was launching standalone CosMc sites, named after a McDonaldland alien mascot, in 2023 with restaurants planned in Illinois and Texas. CosMc focused heavily on hot and cold drinks in a move the BBC suggested was aimed at competing in the "fast-coffee space" with companies such as Starbucks and Dunkin' Donuts. Closing its CosMc sites suggests McDonald's has failed to build a competitive rival to these big hitters in the beverage market, though the company insists it will be applying lessons learned to its other restaurants. Image of a CosMc's restaurant provided by McDonald's. Image of a CosMc's restaurant provided by McDonald's. McDonald's What To Know In a statement released on May 23, McDonald's said that from late June it would be "closing all standalone pilot CosMc's locations on a rolling basis and discontinuing the CosMc's app." However, the company also said that, "building on the insights" it gained from the CosMc pilot, "CosMc's-inspired flavors will be landing at McDonald's as part of the upcoming U.S. beverage test." According to ABC News, McDonald's ended up opening eight CosMc's restaurants or drive-through sites, one near its Chicago headquarters and the other seven in Texas, with an initial plan to open 10 in the Lone Star State. However only five of the CosMc's branches were still open when Friday's announcement was made. The locations focused heavily on drinks such as churro frappé and boba drinks, with a smaller selection of food including McDonald's classics like the McFlurry and McMuffin. However, the launch in December 2023 coincided with a boycott campaign targeted at McDonald's after a franchise in Israel said it would donate meals to the Israel Defense Forces following the October 7 2023 Hamas attacks. A sign towers over a McDonald's restaurant on May 13, 2025 in Chicago, Illinois. A sign towers over a McDonald's restaurant on May 13, 2025 in Chicago, Illinois. Scott Olson/GETTY What People Are Saying In its statement, McDonald's said: "What started as a belief that McDonald's had the right to win in the fast-growing beverage space quickly came to life as a multi-location, small format, beverage-focused concept. It allowed us to test new, bold flavors and different technologies and processes without impacting the existing McDonald's experience for customers and crew. On X, formerly Twitter, David Henkes, a food and beverage industry expert, wrote: "Some of the least surprising news, particularly since they're now rolling many of the innovations into the broad McD system. But that's what an innovation incubator is for." What Happens Next The remaining CosMc's restaurants will now close down. It remains to be seen how many of their products will be introduced to mainstream McDonald's branches as part of the company's upcoming "beverage test." Earlier this month, McDonald's announced it was seeking to recruit "up to 375,000 restaurant employees" across the United States over the summer of 2025.
CNN
03-05-2025
- Business
- CNN
Why chicken is the latest battleground in fast food
In 1995, Chick-fil-A planted a billboard in Georgia adorned with three cows holding up signs declaring 'Eat Mor Chikin.' That image later became a hallmark of its advertising campaign persuading people to ditch their burgers for tenders. Three decades later, the adage is perhaps truer than ever. Chicken-centric chains, notably Raising Cane's and Wingstop, were the strongest performers among all restaurant categories in 2024. Sales for both chains jumped by double-digits, far out-pacing their burger rivals, according to a new report from consumer research firm Circana. The insatiable hunger for chicken, mainly nuggets and tenders, has forced McDonald's, Taco Bell and Wendy's to adjust their offerings and invest more heavily in the category as consumers, well, eat mor chikin. 'Patrons still love burgers, but chicken is really versatile and younger consumers have a stronger preference for chicken,' said David Henkes, senior principal at consumer research firm Technomic. In particular, younger eaters think there's a 'health halo' with chicken, perceiving it as healthier compared to red meat — despite the poultry being coated and fried, he told CNN. Beyond that, chicken tenders and nuggets are easier to eat on-the-go compared to sandwiches and are more tailorable to specific tastes. Tenders and nuggets 'can be customized with sauces in ways perhaps are a bit more limited with sandwiches,' Henkes added, with people often sharing their preferred sauces on TikTok. Wingstop, which is finding success thanks to its focus on poultry, said its research shows that Gen Z loves experimenting with sauces — the company sells about a dozen varieties — and prefers chicken over red meat. The chain recently relaunched its tenders with a crispier coating, another Gen Z preference, so 'it fits perfectly with the Wingstop demographic,' which trends younger than its competitors, Mark Christenson, Wingstop's chief revenue officer told CNN. Still, chicken has a 'universal appeal,' Christenson said. 'Protein is obviously very big right now and I haven't met anybody who didn't like chicken.' Another factor in the rising popularity for tenders and nuggets is the texture. A recent survey conducted by consulting firm Menu Matters shows that 'crispy' and 'crunchy' descriptions rank high in eaters' preferences, explaining why the chains now market it as 'crispy chicken' rather than 'fried.' 'Not using 'fried' may be less about the fact that it's bad or consumers are backlashing against it, but rather fried doesn't offer any emotive element for the consumer other than potentially a feeling of guilt,' Maeve Webster, president of Menu Matters, told CNN. In fact, mentions of 'crispy chicken' on fast food menus in the United States has grown 16% since 2021, according to Datassential Menu Trends. The research firm also discovered that the number of new crispy chicken items has doubled in the first quarter of this year compared to the same time period in 2024. Like Taco Bell, which is trying to corner the 'crispy chicken' sector with an assortment of poultry offerings. The chain recently brought back its nuggets for a second trial run, and if it's as successful as last time, it plans to add more chicken items next year, possibly including strips. 'We're getting into the chicken game. We're serious about it and we want to make sure that we do it our way,' Taylor Montgomery, Taco Bell's chief marketing officer, told CNN. 'We want to make sure that we make Taco Bell a destination for crispy chicken.' Although the hysteria around the Popeye's chicken sandwich from five years ago has dissipated, the item still holds a big place on menus. In the past few weeks, Wendy's has added a new Cajun-inspired version, Chick-fil-A brought back a barbecue option and Zaxbys is giving it a remix with new quesadillas stuffed with tenders. 'Sandwiches aren't dead by any means, but the innovation and excitement has seemingly moved over to tenders and nuggets,' Technomic's Henkes concluded.
