| McDonald’s changes come amid an interesting time for fast-food chains.
Inflation has hit the industry hard, making the once-affordable food option a lot more pricey. McDonald’s dollar menu isn’t even a thing anymore. Things have gotten so bad you’re better off cooking at home again.
And then there’s the “Ozempic effect.” The buzzy weight-loss drug has some worried that customers’ appetite for fast food might dry up — even if those fears are unfounded.
Which is why launching a beverage-focused chain is such an interesting play. Call it “beverage math,” but when it comes to drinks, I don’t tend to scrutinize their price the same way I would a full meal. And fast-food beverages are typically a high-margin item for chains, Nancy told me.
CosMc’s could also be a bid for McDonald’s to boost its app and loyalty program. McDonald’s app has grown over the years, with over 57 million active members, but it still leaves much to be desired. (Nancy reviewed all the top chain apps.)
Starbucks, meanwhile, is the industry’s gold standard. The app accounts for over a quarter of the US company store transactions.
And it’s not just driving business. Starbucks’ app essentially functions as the world’s largest unregulated bank. It has billions of dollars deposited on gift cards that amount to an interest-free loan for the company. (Jamie Dimon could never.)
To be sure, 10 CosMc’s is not even a drop in the bucket of McDonald’s 40,000-plus restaurant empire. But it’s not hard to see how CosMc’s could quickly become a key part of the ubiquitous chain. |
