What‘s Replacing McDonald‘s in Walmart Stores in 2023? A Deep Dive for Shoppers

As a long-time Walmart shopper, you may have noticed some major changes happening lately regarding the familiar McDonald‘s restaurants located inside many stores. Namely, those Golden Arches are disappearing!

So what‘s replacing McDonald‘s in Walmart in 2023? Keep reading for a detailed look at this retail shift impacting everything from your shopping experience to your cheeseburger cravings.

A Wave of McDonald‘s Closures in Walmart Stores

First, let‘s confirm what you may have already noticed first-hand: Yes, McDonald‘s is closing hundreds of its locations within Walmart stores across the U.S.

In fact, according to QSR magazine, nearly 1,000 McDonald‘s restaurants have shuttered inside Walmarts over the past couple years. That‘s around 90% of all McDonald‘s locations that used to exist within Walmart stores!

To put that into perspective, at one point McDonald‘s had restaurants in about 2,000 Walmart locations in total. For years, the two brands maintained an incredibly lucrative partnership dating all the way back to the 1990s.

But now, only about 150 McDonald‘s locations inside Walmarts remain. And they are expected to fully disappear in the coming months and years as leases expire.

So what‘s fueling this dramatic shift that‘s radically changing the in-store experience for millions of Walmart shoppers?

Why McDonald‘s Is Closing Up Shop in Walmarts

As a fellow business owner, I recognize that partnerships sometimes reach their natural conclusion. And in this case, from McDonald‘s perspective, there were several factors negatively impacting the viability of maintaining so many restaurants inside Walmart stores:

Lack of Drive-Thrus

One major limitation was the inability to build drive-thru lanes for McDonald‘s situated within Walmart stores. With drive-thru orders now accounting for a whopping 70% of McDonald‘s sales, not having a drive-thru severely capped revenue potential.

Less Foot Traffic

Additionally, foot traffic into Walmart stores has dwindled over the past couple years as more sales move online. That means fewer people browsing aisles and stopping for a McDonald‘s meal. In fact, Walmart‘s e-commerce sales rose 74% in 2020 during the pandemic as curbside and delivery orders surged.

Lower Sales Volume

With drive-thru unavailable and foot traffic declining, sales volume at in-store McDonald‘s took a nosedive. Average unit volumes were 30-40% less than standalone McDonald‘s, per McDonald‘s CEO Chris Kempczinski. They simply couldn‘t justify renewing leases.

Shifting Strategies

Finally, both McDonald‘s and Walmart have shifting business strategies banking on convenience, tech, and delivery – areas better suited to standalone restaurants than those wedged within larger stores.

It ultimately came down to dollars and cents – and the McDonald‘s-Walmart partnership stopped making good financial sense for either brand.

What‘s Replacing McDonald‘s Inside Walmarts

Now, as a loyal Walmart visitor, your next question is likely: What‘s going to replace the closed McDonald‘s inside my Walmart?

While the specific new restaurant coming to your neighborhood Walmart depends on location, store management has some common replacement options in mind:

Domino‘s

With its emphasis on convenient carryout pizza, Domino‘s is primed for the evolving Walmart model. There are 30+ Domino‘s pizzerias open inside Walmarts now, with more franchises planned.

Taco Bell

Another drive-thru heavyweight, Taco Bell brings its affordably priced Mexican fare to Walmart stores around the country. Its quickly prepared tacos, burritos and quesadillas are an easy shopping break.

Wow Bao

For a modern twist, this Asian fast casual eatery features steamed buns, rice bowls, noodle bowls, and specialty drinks at prices under $10. It‘s a trendy newcomer option.

Nathan‘s Famous

Nathan‘s hot dogs have been a staple for over 100 years. Their crispy fries and famous franks offer a simple yet satisfying meal parents and kids alike will enjoy.

La Madeleine

This French cafe provides a more upscale bakery-cafe ambiance, with soups, salads, sandwiches, and its scrumptious trademark French pastries.

Saladworks

Health-focused Saladworks lets you fully customize salads, wraps, and grain bowls to your liking with premium ingredients and house-made dressings.

Why Restaurants Still Make Sense Inside Walmart

Now you may be wondering – with all the changes lately, why does Walmart still want restaurants inside their stores at all?

As a business owner, I recognize the strategic value of these types of partnerships. Having quick-service dining options in-store provides several advantages for Walmart:

• It‘s more convenient for shoppers to quickly grab a meal or snack without additional stops.

• On-site food drives more customer visits and purchases per trip. People stay longer browsing.

• Name brand restaurants help entice shoppers away from competitors like Target.

• Popular chains like Domino‘s or Wow Bao create business partnerships and added revenue streams.

• In-store dining complements Walmart‘s brand as the one-stop shop for all needs.

According to Walmart‘s Chief Merchandising Officer, having a restaurant or food option available is part of creating a frictionless shopping experience.

So even as McDonald‘s exits, strategically placed quick-service restaurants remain an important part of Walmart‘s blueprint.

How to Find Out When Your Walmart Is Making the Switch

If you want the inside scoop on when your neighborhood Walmart is set to close its McDonald‘s (or has already closed it), here are some tips to get the details:

• Check the McDonald‘s or ask employees about their final day of business. Oftentimes staff will know the closure timeline in advance.

• Reach out to the specific store‘s management for renovation and restaurant transition plans.

• Search for your store‘s phone number on Walmart‘s website to call and inquire directly.

• Regularly monitor the McDonald‘s section of the store for remodeling or renovations signaling change.

• Look for posted notices or signs around the restaurant area announcing closures.

• Ask customer service about coming changes – they may have the latest updates.

I‘d recommend touching base every 4-6 weeks to stay on top of your go-to Walmart‘s plans. Knowing what‘s coming helps you plan shop visits accordingly!

The End of an Era, but More Changes Ahead

It truly is the end of an era, with McDonald‘s and Walmart severing ties after working together for over 30 years. At their peak, they maintained over 2,200 joint restaurant locations – an unprecedented retail partnership.

But even iconic relationships need to evolve. And the drastic shifts in both companies‘ business models over the last few years made it clear this massive partnership had run its course.

As a savvy shopper, staying in-the-know about changes like this helps you plan each Walmart run efficiently. Be sure to check back frequently, as the quick-service restaurant landscape inside Walmart continues changing rapidly.

One thing‘s for sure – we haven‘t seen the last of big transformations at the world‘s largest retailer!