McDonald’s is discontinuing its CosMc’s spinoff, closing all five locations next month, just two years after its launch. The alien-themed spinoff, named after a little-known McDonald’s character, was introduced in 2023 to compete with fast-growing specialty coffee and beverage chains popular among Gen Z consumers, such as Dutch Bros., Scooter’s, and Swig.

CosMc’s menu featured sweet drinks and light snacks, targeting customers during the afternoon slump. The spinoff was created because executives believed customizable drinks would burden McDonald’s employees. However, the demand for customized drinks was less than anticipated.

Recent economic uncertainty has impacted McDonald’s, with the company reporting its second consecutive quarter of sales declines as customers reduced spending. This likely influenced the decision to focus on the core McDonald’s product.

McDonald’s stated that CosMc’s aimed to leverage the chain’s potential in the beverage sector and test new flavors and technologies without affecting the McDonald’s customer experience. Despite the closure of CosMc’s locations—four in Texas and one in Illinois—some menu items may be integrated into McDonald’s.

CEO Chris Kempczinski mentioned that the chain is testing new customizable drinks inspired by CosMc’s with some franchisees later this year. The CosMc’s locations will close at the end of June, and its standalone app and loyalty program will be discontinued.