What’s Your Problem? – What McDonald’s launch of CosMc’s reminds us about the importance of being a problem-solving brand

In case you missed it, the folks at McDonald’s have unveiled a new restaurant concept: CosMc’s. I say restaurant concept because I’m not sure where to place it on the world map of restaurants. To use McDonald’s own words Cosmc’s is “a new small-format, beverage-led concept that’s truly out of this world.” Okay, so drinks. But not like the drinks you’d get at your neighborhood McDonald’s. “CosMc’s seamlessly blends brand-new, otherworldly beverage creations with a small lineup of food, including a select few McDonald’s favorites – all designed to boost your mood into the stratosphere, if only for a few moments.” So, if you’re feeling run down in your still-working-from-home afternoon, rather than make a Starbucks run, CosMc’s offers you an alternative, one where coffee plays second fiddle to wildly-colored concoctions. In a world where we have Starbucks, Dunkin and a host of other coffee-centric brands to choose from, CosMc’s approaches things from a very different starting point. Which is a good thing…right? Hold that in your head for a minute. 

Let’s look at Starbucks and the company’s history: Howard Schultz visited Milan in 1983 and had a great experience in its espresso-centric coffee houses, sparking the recognition Americans lacked a “third place” that was neither work nor home. As consistent as the former and as welcoming as the latter, Starbucks changed America’s relationship with coffee. In addition to the product itself (espressos, lattes, cappuccinos), the setting (comfy seating, music, friendly employees who didn’t pressure you to leave, but encouraged you to linger) allowed Starbucks to do something other coffee shops or fast-food restaurants couldn’t. Instead of solving the problem of getting a coffee or a bite to eat quickly and efficiently, Starbucks focused on the problem of connection and community.

Instead of solving the problem of getting a coffee or a bite to eat quickly and efficiently, Starbucks focused on the problem of connection and community.

And that idea of solving a different problem is important. I worked with someone who loved to say “Important brands solve important problems.” It’s a great sound bite in a room, but it’s also true. What an ambition! How great would it be if your brand could solve an important problem? You’d be indispensable, right? These problems shouldn’t be confused with big, societal issues that live in the domain of a company’s purpose. Nor should they be problems as viewed from the perspective of the company (e.g., “We need a new product to boost sales.”) I’m talking about consumer problems that can be addressed by the fundamentals of the product or service being provided. 

Important brands solve important problems. Consumer problems that can be addressed by the product or service being provided.

If you look at Starbucks’ recent history, as the brand has grown to the point of seeming ubiquity, it’s had little choice but to go searching for a new problem to solve. There was the conversation-starting problem from a few years back. And there was a DEI problem. And I’m sure that there are a few more we, as outsiders, didn’t even realize the brand was wrestling with. But, at its heart, Starbucks kept plugging away at its original “third place” problem in spite of mobile ordering, drive-thru only and Keurig K-Cups. Which brings us to the problem with problems: once you solve them, you either need to keep that problem relevant or you need to find a new problem to solve. The alternative is brand irrelevance. People may still buy from you, but they won’t think about you as much.   

Which brings us back to CosMc’s. When I sit back, squint a little and really think about it, I am not sure what problem the McDonald’s offshoot solves. Maybe it gives people access to calories and sugar without requiring them to get out of their cars, but isn’t that space oversubscribed? Maybe it’s a way to experience novelty beverages, but how important is novelty in a category built on habit? I’m sure it addresses McDonald’s need to drive growth, to experiment with new products and to steal breakfast and post-lunch share from the Starbucks/Panera/Dunkin drive through down the block. But those are company problems, not consumer ones.

Now, I’m not trying to take shots at McDonald’s. I can’t really say what problem Starbucks or Dunkin are solving these days either beyond serving up caffeine and calories. But those are brands that have been around for a while, and have the benefit of brand equity coming out their ears. With CosMc’s, McDonald’s is starting anew. And once the shine fades from the object, without a clear consumer-centric problem to address and a real way to solve it, I fear the object itself will start to fade, as well. 

Without a clear consumer-centric problem to address and a real way to solve it, I fear the object itself will start to fade, as well. 

But, what do I know? I still drink drip.