CosMc's: Is McDonald's new coffee chain its answer to Starbucks?

McDonald's is testing a new coffee shop-style restaurant with customisable drinks and treats in a bid to grab sales from the likes of Starbucks.

With plans to open 10 CosMc's restaurants through the first half of next year, the company will study their success before determining whether to expand or not.

The company also said it expects to open nearly 10,000 McDonald's restaurants worldwide over the next four years - to reach a total of 50,000 restaurants - a pace of growth that would be unprecedented even for the world's largest burger chain.

The fast-food chain already has the McCafe brand, but the new stores will offer a larger menu of specialised drinks.

Named after a space alien character it introduced in the 1980's, McDonald's chiefs say the industry is worth more than $100 billion (£78 billion), and want their own foothold in it.

McDonald's said the explosive growth of delivery demand makes it critical to get restaurant locations even closer to customers so food can arrive faster and hotter. McDonald’s delivery made up $1 billion (£780 million) in global sales in 2017; that has grown to more than $16 billion (£12.7 billion).

Chief executive Chris Kempczinski said: “Not everybody wants delivery every single meal. Sometimes they want to go to the restaurant with their family.”

Starbucks also has a big expansion of its own in the works, aiming to open 55,000 stores globally by 2030, up from its current 38,800.

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