McDonald's is set to take on the coffee industry with the launch of its new chain, CosMc's. The fast-food giant hopes to challenge Starbucks and Dunkin' as it seeks to boost afternoon sales. McDonald's CEO, Chris Kempczinski, announced that the first CosMc's location will open in Bolingbrook, Illinois this month, with plans to introduce additional restaurants in 2024. The move comes in response to the growing demand for an "afternoon beverage pick-me-up occasion," a market worth $100 billion where McDonald's currently lacks a significant presence.

Kempczinski described the concept of CosMc's as "what would happen if a McDonald's character from the 1980s that was part alien, part surfer, part robot" opened a restaurant in 2023. The new chain will enable McDonald's to offer customized beverages that are more challenging to create within their traditional restaurants. The menu at CosMc's will include a range of new customizable drinks, as well as popular McDonald's items like the iconic Egg McMuffin.

Some of the coffee drinks that will be available at CosMc's include a churro frappe, a s'mores cold brew, and a turmeric-spiced latte. The chain will also offer non-coffee beverages such as a sour cherry energy burst, a blackberry mint green tea, and a popping pear slush. In addition to drinks, CosMc's will have a selection of "sweet and savory treats" on offer, including a spicy queso sandwich, a creamy avocado tomatillo sandwich, pretzel bites, and caramel fudge brownies.

Customers at CosMc's will have the opportunity to customize their drinks with options such as popping boba, flavor syrups, and energy and Vitamin C shots. The first CosMc's location will be in Bolingbrook, Illinois, with around 10 additional locations set to open in Texas in 2024.

While McDonald's is expanding its reach with CosMc's, it also has plans to open approximately 10,000 new stores worldwide by 2027. The company anticipates that this will be the "fastest period of growth" in its 60-year history. The decision to accelerate restaurant openings comes as McDonald's reported an 8.1% increase in same-store sales in the third quarter.

However, McDonald's isn't the only major player looking to expand its reach. Starbucks recently announced plans to have 55,000 stores globally by 2030, up from its current 38,000 locations. With both McDonald's and Starbucks eyeing significant growth, the battle for dominance in the coffee industry is set to intensify in the coming years.