McDonald’s is pulling out of hundreds of Walmart store locations, as changing shopper behavior has frayed the success of the partnership between the two mega-businesses, according to Progressive Grocer.
McDonald’s and Walmart have had a relationship for the last 30 years, but the Covid-19 pandemic led to a surge in online shopping, fewer in-store visitors and higher demand for drive-thrus, which Walmart doesn’t offer for in-store restaurants. The changeup is a sign of the times as more consumers order online and pick up at the store, often from the parking lot, leaving little incentive to sit inside the store for a meal.
At the height of the relationship between the two behemoths, there were roughly 1,000 McDonald’s restaurants inside Walmarts. The latest round of closures will leave about 150 McDonald’s locations within Walmart stores. The Wall Street Journal was first to report the news.
The fast-food innovator is not the only chain restaurant pulling out of Walmart, however. Subway is also closing up its Walmart locations due to declining foot traffic and profits.
“The Walmart locations have been our toughest challenge,” Subway franchisee Jim Miller told the WSJ.
As the pandemic has created a hunger for more drive-thru, pick-up and delivery food options, other types of retailers are experimenting with ways to deliver to consumers where they are. For example, 7-Eleven debuted a taco drive-thru in South Texas.
See the full story at Progressive Grocer.