McDonald's will test market a small format spinoff brand

Brian Lutz
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McDonald's will test market a small format spinoff brand

Post by Brian Lutz »

https://www.cnbc.com/2023/07/27/mcdonal ... osmcs.html

In their second quarter earnings call today, McDonald's announced that they will test market a new smaller format concept called "CosMc's" in early 2024. The name comes from an obscure six-armed alien McDonaldland character who appeared in commercials in the mid to late Eighties. More details about the new concept will be shared later in the year, but given McDonald's poor track record with spinoffs and investments in other chains it doesn't exactly set high expectations.
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Re: McDonald's will test market a small format spinoff brand

Post by storewanderer »

I wonder if this is just the new drive through/pick up focused format.

My prediction for this format:

1. Typical "classic" MCD Menu of Big Mac, Hamburger, Cheeseburger, 1/4lb, Fries, Chicken McNuggets, McChicken, and maybe 1 other fried chicken sandwich
2. NO Breakfast (... we will see)
3. NO McCafe and NO Coffee at all; NO hot tea
4. Milkshakes/ice cream yes
5. No "Bakery" (no cookies, etc.).
6. They could still sell Happy Meals
7. Fewer drink sizes - Kid, Medium, Large only
8. Only 2 fry sizes - Kid and Medium

What I describe sounds like a rebranded version of the old McDonalds Express format.
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Re: McDonald's will test market a small format spinoff brand

Post by ClownLoach »

I'm going to go out on a limb and guess they're going to try making a completely new and different type of concept for McDonald's with absolutely nothing in common except for the fries and Big Mac Sauce.

I'm betting they're going to go with a Oklahoma Burger concept - that's basically a smash burger with cheese, grilled onions, pickles, and a sauce somewhat like Big Mac Sauce. Regular McDonald's fries. Sodas and shakes. That's it. Single, double, and triple burger. A slider size for kids.

It seems every major metro area has a place like this starting up. Look up a restaurant in Santa Monica, CA called Heavy Handed. It looks so simple, appears overpriced (it is clear the prices are to pay high rent and $20+/hour wage that is prevalent there).

Heavy Handed looks cheap and simple in pictures. It is deceptive. That is the best damned burger in LA. I ate there and when I picked up my food at the window I had a short "that's it?" moment. Sat down and took a bite. Insanely delicious. Like I'd drive there any time I needed to be in the LA area to eat there.

McDonald's could absolutely pull it off because it's so simple. In fact simpler than In-N-Out. I'd expect it to be all tech driven, app or kiosk ordering only. Small building, outside seating only, and pickup parking spaces instead of a drive thru.

Someone is going to make a national chain of places like that. Might as well be McDonald's. Greatest irony of all? It's a heck of a lot like the original McDonald's.
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Re: McDonald's will test market a small format spinoff brand

Post by pseudo3d »

storewanderer wrote: July 27th, 2023, 10:20 pm I wonder if this is just the new drive through/pick up focused format.

My prediction for this format:

1. Typical "classic" MCD Menu of Big Mac, Hamburger, Cheeseburger, 1/4lb, Fries, Chicken McNuggets, McChicken, and maybe 1 other fried chicken sandwich
2. NO Breakfast (... we will see)
3. NO McCafe and NO Coffee at all; NO hot tea
4. Milkshakes/ice cream yes
5. No "Bakery" (no cookies, etc.).
6. They could still sell Happy Meals
7. Fewer drink sizes - Kid, Medium, Large only
8. Only 2 fry sizes - Kid and Medium

What I describe sounds like a rebranded version of the old McDonalds Express format.
There was also a "Mini Mac's" or something along those lines in NYC that only had McNuggets, fries, drinks, and desserts.
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Re: McDonald's will test market a small format spinoff brand

Post by Brian Lutz »

Looking up Heavy Handed, it seems to be a physical location for what used to be a food truck. Those prices seem to be stupid expensive, but are actually pretty typical (for better or worse) for food truck fare.

As for the "old" McDonald's, I think one of the closest modern analogues you can find to that is Dick's Drive-in in the Seattle area. The first location opened in 1954 and they have changed surprisingly little since that time, with only minimal changes to the limited menu and relatively low prices in spite of the high cost of living in the Seattle area. I was never a huge fan of Dick's when I lived in Seattle (I always preferred Burgermaster), but they have a very loyal following, and have recently opened several new locations in the Seattle suburbs (Edmonds, Kent, Bellevue and a Federal Way location just opened yesterday.)
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Re: McDonald's will test market a small format spinoff brand

Post by veteran+ »

In my younger years when I was eating meat..........................that "smash" burger thing was the only way my Mom made hamburgers.

The flavors along the edges were divine!
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Re: McDonald's will test market a small format spinoff brand

Post by Brian Lutz »

And as I noted in another thread, Red Robin seems to have switched to smash burger style cooking, and it actually seems to be a pretty good improvement compared to their older burgers (which could be thick and rather dense at times.)
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Re: McDonald's will test market a small format spinoff brand

Post by storewanderer »

veteran+ wrote: July 28th, 2023, 8:14 am In my younger years when I was eating meat..........................that "smash" burger thing was the only way my Mom made hamburgers.

The flavors along the edges were divine!
Properly made smashed burgers are the best. You can still make something like that with the alt-meat products and some seasonings though.

Correct Steak N Shake smash technique works best on a flat grill but the turner type does work on a pan with edges. I did not realize part of the trick is to put the hockey puck patty on and let it brown for a short time period before the smash part.
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Re: McDonald's will test market a small format spinoff brand

Post by storewanderer »

Brian Lutz wrote: July 28th, 2023, 1:43 pm And as I noted in another thread, Red Robin seems to have switched to smash burger style cooking, and it actually seems to be a pretty good improvement compared to their older burgers (which could be thick and rather dense at times.)
Didn't Red Robin used to BBQ the burgers?

And now they are doing flat grilling?

I wonder if the are doing some weird thing like Habit has done some of sometimes where they grill the burger partially then put it on a flat to finish it.
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Re: McDonald's will test market a small format spinoff brand

Post by babs »

storewanderer wrote: July 28th, 2023, 11:13 pm
Brian Lutz wrote: July 28th, 2023, 1:43 pm And as I noted in another thread, Red Robin seems to have switched to smash burger style cooking, and it actually seems to be a pretty good improvement compared to their older burgers (which could be thick and rather dense at times.)
Didn't Red Robin used to BBQ the burgers?

And now they are doing flat grilling?

I wonder if the are doing some weird thing like Habit has done some of sometimes where they grill the burger partially then put it on a flat to finish it.
I don't know what the machine is called but Red Robin would stick their burgers into a machine that has a conveyer belt and the burger would come out on the bottom cooked, similar to Burger King. They were not using a grill.
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