McDonald's CosMc's Grabbing Attention of Wealthier Americans

McDonald’s new CosMc’s strategy is growing and grabbing the attention of wealthier Americans.

While the inflation rate has dropped significantly from astronomical levels in 2022, it’s still not at the two percent level the Federal Reserve would like it to be. You would think consumers generally would be looking to cut costs across the board. And restaurants can be quite a premium today. A study by Top Nutrition Coaching shows that the average meal at even an inexpensive establishment costs nearly 285 percent more compared to cooking at home.

That said, McDonald’s is finding success with a new concept called CosMc’s. It’s a spinoff restaurant that the fast food giant completed in 2023. While it includes a McDonald ‘s-inspired lineup, along with some favorites, the menu options to choose from are smaller through the drive-thru-only experience.

So instead of ordering a Big Mac, think of the creamy avocado tomatillo sandwich, which consists of 470 calories. When going to a CosMc’s location, think of bakery goods like pretzels bites, and cookies. The McFlurry and the egg McMuffin sandwiches are available to order at the smaller concept stores as well. Plus, various drinks including coffee and fruity refreshers can be ordered.

A report from software firm Placer.ai shows that CosMc’s is working among higher-income Americans.

“Location analytics shows that the concept already drives traffic from more affluent consumers than the traditional McDonald’s chain,” it said.

Keep in mind that the average household income nationwide for McDonald’s customers was $65,000 for June 2024. That number rises to $97,000 for CosMc’s in Bolingbrook, Illinois. The metro area of Chicago for McDonald’s shows that the median household income was recorded to be just $75,500.

Captured markets in Dallas-Ft. Worth-Arlington CBSA, also showed that household income at CosMc’s was significantly higher than those going to McDonald’s in the area. The numbers were $85,700 compared with $71,200, respectively.

“As a beverage-led concept, CosMc’s may drive more traffic from higher-income consumers than a traditional McDonald’s – where simple soft drinks typically come as an inexpensive meal add-on,” Placer said.

“And as a result, the chain may help McDonald’s bring a new consumer cohort into the fold.”

Placer’s report follows one from earlier this year where the software firm noticed that visits at CosMc’s were more than double compared to a traditional McDonald’s in December 2023.