When McDonald’s wanted to innovate quickly on a new concept, we helped design and build an “out of this world” omnichannel experience in less than a year.
Impact
CosMc’s launched to a tremendous outpouring of consumer and media enthusiasm—and continues to embrace rapid iteration and customer-led learning.
Industry
Restaurants & dining
Key Services
Key Technologies/Platforms
- Amazon Web Services (AWS)
- Google Cloud
- Google Analytics
- React Native
- Apple iOS & Google Android
- Restaurant technology platforms & integrations
The Vision
With over 36,000 restaurants worldwide, McDonald’s is an iconic brand that pioneered quick service and continues to lead the QSR market. From such a position of strength, many companies would just stay focused on their core business. Instead, McDonald’s leaders saw an opportunity to take a leap and explore a new approach for the next generation.
In October 2022, the McDonald’s board of directors approved a top-secret initiative to launch a limited test of a new restaurant concept.
What would later be called CosMc’s started out as a loosely defined vision for a unique service experience to engage Generation Z with a beverage-led menu and a focus on the “afternoon occasion” or “3pm slump.” The underlying goal was to grow in the specialty beverage and coffee market, a $100B opportunity across McDonald’s six largest markets.
Leaders wanted to prioritize speed and learning. To make this possible, they assembled a small, cross-functional dream team of proven talent from across the organization. The team would have flexibility to work outside existing McDonald’s systems, vendors, or technologies. They would be supported by a regular cadence of reviews with chief executive officer Chris Kempczinski and chief marketing officer Morgan Flatley. This structure would help keep the work on track, while also sending a clear signal that the initiative was a priority at the highest levels.
The full-time journey to bring CosMc’s to life began in February 2023. Slalom was engaged soon after to help craft the omnichannel vision and build the digital foundation.
The Solution
As the CosMc’s experience came into focus, the team moved quickly, building together through thousands of hypotheses, tests, and decisions.
Customer Impact
The secrecy around CosMc's broke on December 6, 2023 at the McDonald's Investor Meeting. The next day, the first pilot store opened to a deluge of consumer and media enthusiasm.
The anecdotes speak volumes.
One McDonald’s fan flew from London to try CosMc’s. Another drove from Canada. Three TikTok influencers took a 16-hour road trip from Nebraska to order and taste the entire menu. Thousands of people, including many cars full of Zoomers (Gen Z), waited in line for six hours or more on opening weekend. The launch was featured on major news outlets, on shows like Saturday Night Live and Good Morning America, and across social media.
“You can only dream of that kind of press coverage for a new brand,” says Charlie Newberger, the vice president leading the initiative, but he cautions that the big questions have yet to be answered. Will customers accept McDonald’s extending its brand? Can CosMc’s gain a foothold in the specialty beverage and coffee market? “It’s still very early, but early interest suggests that the answer to both those questions is likely yes.”
No matter what, McDonald’s core business is taking note. CosMc’s is an inspiration for what’s possible when you break down silos to collaborate with customers at the center. It demonstrates innovation at a pace that was previously unknown in the McDonald’s system, and this experiment is far from over.
Iteration on the menu, experience, and operations continue, with a goal of 10 pilot restaurants by the end of 2024. Nobody knows exactly where CosMc’s is going, but at Slalom we’re hoping for Turmeric Spiced Lattes in every city on the planet.
Our Slalom team
We started with a small team and an eight-week accelerated discovery, which led to a longer commitment to help build out the digital customer experience. Meet some of our team members.