Fewer people want to eat their meals at Walmart.
Walmart Inc. and large restaurant chains such as McDonald’s Corp. had a beneficial relationship for years. The retailer provided a steady stream of eateries, and the eateries provided rental profits and a reason for the shopkeepers to stay at the stores.
These effects have fragmented as more shopping goes online and fast food restaurants become more dependent on drive-through windows for sales, which Walmart locations do not know. The pandemic has made indoor eateries unattractive – or banned – for many buyers, accelerating the rift.
McDonald’s includes hundreds of restaurants in the largest U.S. stores, the last remnants of an approximately 30-year-old experiment between the companies. About 150 McDonald’s stores will remain at U.S. Walmart locations after a new wave of planned closures that, according to the civic giant, are expected by summer. At the pinnacle of the partnership, there were about 1,000 McDonald’s restaurants in Walmart stores.
Franchisees of Subway, one of the largest fast food chains in the world with establishments in Walmart stores, also says they are closing this year, citing reduced foot traffic and lower profits.