Fewer people want to eat at Walmart.
For years Walmart Inc. and large restaurant chains such as McDonald’s Corp. they enjoyed a mutually beneficial relationship. The retailer offered a steady stream of diners and the restaurants provided rental benefits and a reason for shoppers to stay in stores.
These vouchers have worn off as more online purchases are made and fast food restaurants rely more on sales access windows, a feature that Walmart locations don’t have. The pandemic has made indoor food unattractive (or banned) for many shoppers, accelerating division.
McDonald’s is closing hundreds of restaurants located in the largest retail stores in the United States, the latest vestiges of a more than 30-year experiment between companies. About 150 McDonald’s stores will remain at Walmart’s U.S. locations after another wave of planned closures is expected to end this summer, according to the burger giant. At the height of the partnership, there were approximately 1,000 McDonald’s restaurants in Walmart stores.
Subway franchisees, one of the largest fast food chains in the world, with locations in Walmart stores, also say they are closing locations this year, citing declining walking traffic and lower profits.