Fast-food giant McDonald’s is continually experimenting with new concepts to replicate their core brand’s success. However, these new ventures don’t always go as planned, sometimes leading to unexpected shutdowns and strategic shifts. Here’s a closer look at recent endeavors from industry leaders McDonald’s and Chipotle.
McDonald’s Explores Beverage-Driven Concept with CosMc’s
In December 2023, McDonald’s launched an experimental spinoff in Bolingbrook, Illinois, named CosMc’s. This novel venture focused primarily on a beverage-led format, introducing an array of unique drink options such as the Sour Cherry Energy Slush, Tropical Spiceade, and S’mores Cold Brew.
The food menu, although limited, included intriguing items like the Creamy Avocado Tomatillo Sandwich, Spicy Queso Sandwich, and a variety of snack options including McPops filled donuts and Pretzel Bites.
Popular fast-food chain shuts down its new restaurant brand https://t.co/G39jGJLY6c
— TheStreet (@TheStreet) April 27, 2024
Despite the innovative approach, the success of CosMc’s remains uncertain. McDonald’s, however, remains hopeful, planning to expand this pilot into approximately 10 locations by the end of 2024.
“Our goal is to explore new formats and menu offerings that can potentially enhance our main brand’s appeal and reach,” McDonald’s stated, signaling a cautious but optimistic outlook on this new brand extension.
Chipotle’s Journey Through Diverse Culinary Concepts
Chipotle, another dominant name in the fast-food industry, has not shied away from exploring diverse culinary spaces either. Back in 2011, Chipotle introduced ShopHouse, a Southeast Asian-inspired menu that unfortunately saw its end in 2017 after failing to garner the expected customer loyalty.
This closure was attributed to the brand’s inability to achieve “the same level of customer loyalty and repeat visits that Chipotle had,” as reported by The Motley Fool, quoting then-Co-CEO Monty Moran.
Not stopping there, Chipotle ventured into the pizza segment with its Pizza Locale chain, which served Neapolitan-style pizza. Despite the promising start, all five locations were closed in July 2023. Chipotle’s ambitious stride continued with the introduction of Farmesa Fresh Eatery, a California-style fresh eatery, in 2023.
Developed by James Beard Award-winning Chef Nate Appleman, Farmesa aimed to blend classic culinary techniques with fresh ingredients. However, this concept too was short-lived, with Chipotle deciding to cease its operation and refocus on its core offerings.
“Chipotle will now focus on enhancing our existing menu and scaling our main brand both domestically and internationally. We believe this will better align with our long-term strategic goals,” CEO Brian Niccol remarked during an earnings call.
Lessons from Bold Experiments
The fast-food landscape is marked by constant innovation and attempts at diversification. While not all new ventures achieve lasting success, they often provide valuable insights and learning opportunities for their parent brands.
Both McDonald’s and Chipotle’s experiences underline the challenges and potentials inherent in exploring new culinary territories. These ventures into new concepts are not merely experiments but strategic moves aimed at discovering the next big trend or reinforcing the parent brand’s market dominance.
As the industry evolves, the experiences of McDonald’s with CosMc’s and Chipotle with its array of spinoffs will undoubtedly serve as important case studies. They reflect the broader trend of how established brands navigate expansion and innovation in an ever-competitive market, always seeking to balance novelty with customer expectations and brand identity.
