McDonald’s highly touted first foray into specialty drinks with its CosMc’s subsidiary will run out in June 2025, and two San Antonio locations are among the last five to shut down. The galaxy-themed pilot, which debuted in December 2023 in response to increasing competition from Starbucks and boutique drink chains, proved too much to sustain as a separate business venture after preliminary consumer enthusiasm.
San Antonio targeted closures
FM 1957 outpost
The 12360 FM 1957 store opened in August 2024 as part of CosMc’s expansion in Texas, introducing the chain’s first-ever outside patio with twilight-lit amenities. The shop initially attracted customers with its Galactic Boost energy drinks and Sour Cherry Burst slushies but saw traffic nosedive after the 2024 holiday season.
Potranco road location
Simultaneously opened with its FM 1957 twin, the 8726 Potranco Rd. eatery was a drive-thru establishment that could hold 120 cars per hour at prime time. Its shuttering leaves one of only three CosMc’s in the country to sell limited-edition Sprite Moonsplash drinks with dried blueberries.
Strategic pivot behind closures
McDonald’s leaders did perceive the inherent flaw in the idea: customized beverage orders clashed with simple restaurant practices. As CosMc’s established 27 signature drink recipes employing ingredients such as turmeric lattes and prickly pear bases for slush, it was unrealistic to produce these in simple McDonald’s kitchens due to:
- Specialized equipment needs for boba pearls and energy shot dispensers
- Extensive preparation times of an average 4.2 minutes per customized drink order
- Inventory management complexities for 38 distinct syrups and toppings
San Antonio was a classic case of oversaturation issues, with both CosMc units within 15 miles of 84 established McDonald’s restaurants. The saturation level posed cannibalization issues, especially during the afternoon “snack and sip” period when 22% of CosMc patrons had already been to rival McDonald’s cafes.
Legacy and menu integration
CosMc compelled McDonald’s to overhaul worldwide strategy despite the closures:
- Drink teams: 14 local drink-making teams to roll out by Q4 2025, with emphasis on custom options
- Flavor transplants: Churro Cold Brew Frappé and Blueberry Lemon Cookie taste-test winners will arrive in U.S. McDonald’s restaurants in September
- Tech adoption: CosMc app-created order-ahead technology cut drive-thru wait times by 18% in trials, paving way for nationwide roll-out
Collector opportunities
With shut-down soon to come, memorabilia scavengers hunt for limited-edition fare.
- FM 1957 patio neon signs sell for $2,400+ in private sale
- Unused straw wraps, Cosmic Swirl, sell on eBay for $8/each
- Customers redeem loyalty program points rapidly prior to app’s June 30th shut-down
Potranco Rd. property’s $35,000/month lease then goes into renegotiation with Dunkin’ Donuts and 7 Brew showing interest. Local zoning commissions expect contentious hearings over drive-thru plans in response to CosMc’s proven traffic jam.
Workforce transition
McDonald’s makes sure to reassign all 47 impacted San Antonio workers to company-owned restaurants, providing:
- $500 relocation incentives for moves outside of 15-mile radius
- Priority scheduling for barista-trained staff at McCafé restaurants
- Free access to “Future Restaurant Manager” training modules
The CosMc’s test, although temporary, gave McDonald’s a glimpse of Gen Z drink trends and operational constraints. With golden arches preparing for core menu innovation, San Antonio’s closed stores remain reminders of corporate experimentation in the unstable quick-service restaurant environment.
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