June 17, 2021 | Eul Basa

Say Goodbye To McDonald's Restaurants In Walmart Stores

As the world continues to shift towards e-commerce and digital solutions, several retailers are revising their business strategies in order to adjust to the changing circumstances. For Walmart, part of that adaptation involves the dissolution of its longstanding commercial partnership with McDonald's, which it has held since 1994. Their decades-long relationship will soon come to an end as Walmart removes more McDonald's restaurants from its stores.

According to reports, the closures have been in the works for over a year now, with a bulk of them happening just in the past few months. As of 2020, there were approximately 500 McDonald's restaurants left in Walmart stores across the U.S., which is a substantial decrease from the 800 restaurants that were still in operation in the years prior. With the next series of closures that are set to occur this summer, there will only be a total of 150 locations left, and from there, it will only a matter of time before those locations are replaced with other fast-food services.

McDonald's had previously announced these plans with its shareholders, explaining that "the majority of closures across the U.S. market are from lower sales volume McDonald's in Walmart store locations." This makes sense as there has been less foot traffic in Walmart stores recently due to the sudden rise of online shopping, delivery services, and curbside pick-up. The pandemic has had a particularly significant influence on the reduction of in-person shopping in the last few months, with local restrictions discouraging shoppers from stepping into the stores.

This goes beyond grocery shopping, too—even when people do out to get food, they aren't getting out of their vehicles. According to a company study, 70% of orders in top markets come from drive-thrus, which Walmart-based McDonald's restaurants are not equipped with. In order for these chains to become profitable, they would need either increased foot traffic or a drive-thru feature, which are both too expensive to see through.

While it would be easier to simply close the restaurants altogether, it's important for Walmart to find replacement fast-food services to McDonald's since it still needs to remain competitive among its adversaries. Some Target stores, for example, have Starbucks locations inside, and Costco will soon reopen its food courts to the public. The presence of these restaurants in stores is a vital part of the customer experience and they provide many benefits to their partner companies, including improved customer satisfaction and retention.

Walmart typically leases its storefront space to other businesses, especially national chains and restaurants. Currently, it is experimenting with Domino's Pizza franchises, since pizza restaurants largely depend on pick-up and delivery and that could help increase the foot traffic. At this moment, there are 30 Domino's Pizza restaurants in Walmart locations across the country, and plans have been made to grow that number in the next few years. Additionally, Walmart is looking to test other franchises in various locations, including Yum Brand's Taco Bell, Charley Phyllis Steak, and Ben's Soft Pretzels.

"We have a great opportunity with our leased space business to help our stores become even more convenient and relevant to local communities," Walmart told Insider. "We are excited to continue to bring in new businesses that make sense for our customers and their changing needs."


Homestead Budget Internal

How to Start a Homestead On A Budget

Uncover 10 steps to starting your homestead on a budget. Find out how you can get supplies, plants, and even animals basically for free, and how to maintain it all for next to nothing.
May 17, 2024 Allison Robertson
Alex Tew and a Koosh Ball

17 Dumb Inventions That Made Millions

These simple inventions will make you scratch your head and think, "Well, I could have thought of that"...Only, you didn't.
May 17, 2024 Sarah Ng

The Top Financial Scams of 2023

Uncover the top financial scams of 2023. From fake checks and fake jobs, to government imposters and fake loan forgiveness, find out how much consumers lost in financial scams in 2023, and the most common methods the fraudsters preferred.
May 16, 2024 Allison Robertson
Jobs2024 Internal

The Highest Paying Jobs You Can Get Without A Degree

Having higher education is often associated with higher-paying job prospects, but that isn't always the case. Some jobs don't need you to have a degree to make a decent living—all you need is a high school diploma or equivalent.
May 14, 2024 Eul Basa

20 Billionaires Who Actually Started Off Poor

Most of the world's wealthiest people were born pretty darn wealthy to begin with. But the American Dream can come true—just ask any of these true self-made billionaires.
May 11, 2024 Jamie Hayes

18 Thrifty Gift Ideas for Mom

Uncover 18 gift ideas you can find for your Mom at the thrift store. Not only is thrifting easier on your wallet, it's also a sustainable choice, and provides the opportunity to find a diamond in the rough. From the interior design mom to the sporty mom, there's something for everyone at the thrift store.
May 10, 2024 Penelope Singh

Dear reader,

It’s true what they say: money makes the world go round. In order to succeed in this life, you need to have a good grasp of key financial concepts. That’s where Moneymade comes in. Our mission is to provide you with the best financial advice and information to help you navigate this ever-changing world. Sometimes, generating wealth just requires common sense. Don’t max out your credit card if you can’t afford the interest payments. Don’t overspend on Christmas shopping. When ordering gifts on Amazon, make sure you factor in taxes and shipping costs. If you need a new car, consider a model that’s easy to repair instead of an expensive BMW or Mercedes. Sometimes you dream vacation to Hawaii or the Bahamas just isn’t in the budget, but there may be more affordable all-inclusive hotels if you know where to look.

Looking for a new home? Make sure you get a mortgage rate that works for you. That means understanding the difference between fixed and variable interest rates. Whether you’re looking to learn how to make money, save money, or invest your money, our well-researched and insightful content will set you on the path to financial success. Passionate about mortgage rates, real estate, investing, saving, or anything money-related? Looking to learn how to generate wealth? Improve your life today with Moneymade. If you have any feedback for the MoneyMade team, please reach out to [email protected]. Thanks for your help!

Warmest regards,

The Moneymade team