Marketing
Walmart embracing fast casuals, local services as store-based tenants
With the departure of McDonald's and Subway operators from within its storefronts, Walmart aims to fill in-store leased space with "relevant" tenants, ranging from local businesses to foodservice operators.
April 15, 2021 by Judy Mottl — Editor, RetailCustomerExperience.com & DigitalSignageToday.com
Fast casual brand la Madeleine French Bakery & Café will launch "Express" locations within 10 Walmart stores throughout Dallas-Fort Worth this year, providing shoppers with a grab-and-go experience, with the first opening in Garland, Texas in July.
The Express prototype store features a footprint ranging from 980 to 2,209 square feet and the menu will include fan favorites including chicken Caesar salad as well as new items, including pizza, created specifically for the Walmart location, according to a press release. Each bakery will also feature a retail section offering shoppers menu items as well in addition to new products such as jams and sauces. la Madeleine French Bakery & Cafe, founded in 1981, operates more than 86 corporate and franchise bakeries in nine states, and is owned by Rennes, France-based Groupe Le Duff.
"We'ere very excited about Walmart's curated food service experience for customers," la Madeleine CEO Lionel Ladouceur said in the release. "We look forward to making it even more convenient for the DFW community to enjoy the la Madeleine experience, while also introducing our French comfort food to Walmart shoppers that are looking for more diverse dining choices."
Saying goodbye to McDonald's and Subway
The news reflects Walmart's latest store development strategy in replacing longtime food tenants McDonald's and Subway. The QSRs are not renewing all leases after decades of renting space, a Walmart spokesperson told Retail Customer Experience in an email.
"As you know these spaces have been freeing up over time. We have been and continue to fill them. We're looking to both restaurants and services that really relevant to our customers — be it local businesses (locally owned barber shop), a service that has localized relevance (tool rentals in the Carolinas) or a larger chain that is really delivering on how customers are looking to shop/get their meals (Domino's)," said the spokesperson.
The news comes one week after McDonald's announced that it was closing hundreds of its Walmart locations given decreased consumer traffic within the physical storefronts as well as changing consumer behavior, as reported by CNBC.
The QSR plans to keep about 150 of its 500 Walmart-based locations open. At one point McDonald's were within 1,000 Walmart stores, according to published reports. The retailer and fast food giant have partnered on locations for over 25 years, and Walmart currently has 30 Domino's in stores nationwide and is also looking to include Taco Bell in stores.
Earlier this week, as Retail Customer Experience reported, Walmart Canada and Ghost Kitchen Brands announced a partnership for a one-stop meal pickup and delivery services involving a slew of brands, including Saladworks and Quiznos within Walmart locations.
"We believe in Ghost Kitchen's strategy and vision and we're very excited to be the first retailer to team up with Ghost Kitchens," Sam Hamam, senior director of licensees at Walmart Canada, said in a news release. "We're always looking at ways to improve our customer shopping experience with greater access to affordable products, services and brands."
Saladworks first announced its partnership with Ghost Kitchen Brands in late March and will bring 60 non-traditional locations to the U.S. and 30 to Canada by the end of 2021, with many of the new kitchens housed inside Walmart stores. Some will offer seating, and all will feature carry-out and third-party delivery.
As Fast Casual reported last November, Saladworks has been leasing space in grocery locations since 2019, with the latest being its first Kroger store which opened in late 2020 in Cincinnati.
"Grocery stores are an exciting growth area for our brand. With COVID-19 bringing safety challenges to self-serve food bars in grocery stores everywhere, guests can feel safe with Saladworks," Eric Lavinder, VP of development for Saladworks, said in a press release. "Guests can get the same great experience and variety at a grocery location as they can a traditional restaurant."
About Judy Mottl
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