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Walmart, the country’s largest grocer, has already gotten a recent boost from fast-food consumers frustrated by high prices.
And now the retail giant is crossing further into restaurant territory, partnering with Texas-based chain Mr Gatti’s Pizza to open nearly 100 locations in its stores in the coming years.
A dozen Mr Gatti’s restaurants are slated to open in Walmart stores in North Texas and Southern Oklahoma during the fourth quarter, the pizza chain said, with a total of 92 counter-service operations planned in Texas, Oklahoma, Louisiana and Kentucky.
Walmart approached Mr Gatti’s about the partnership, seeing alignment in a shared focus on “value and quality,” Mr Gatti’s CEO Jim Phillips said in a statement. “We are proud to recognize that Mr Gatti’s and Walmart share the same customers, so we believe this is a winning combination to better serve our communities.”
The pizza shop outposts will feature limited seating, along with a menu of pizzas, wings, salads, sandwiches and other items.
Shoppers can order through the app and collect their meals after they checkout. The in-store restaurants will also offer delivery.
The pairing feeds into Walmart’s goal of keeping consumers within its ecosystem, Amy White, the retailer’s senior manager of business development, said in a statement.
“By bringing Mr Gatti’s beloved menu into our stores, we can provide even more value and convenience for our shoppers, making it easier for families to enjoy a delicious meal. This collaboration not only aligns with our commitment to offering diverse and high-quality options but also supports our goal of creating a one-stop destination for all our customers’ needs.”
This is, of course, not Walmart’s first foray into fast food.
The retailer has long had partnerships with major national restaurant brands, including McDonald’s and Subway, which closed their Walmart locations in 2021, citing declining sales as shopping increasingly turned online.
With the Mr Gatti’s deal, Walmart appears to be further embracing the draw of regional chains, rather than national restaurant names.
About a year ago, the retailer announced a partnership with Houston-based Uncle Sharkii Poke Bar, which now has about a dozen locations in California, Utah, Hawaii and Texas, with more in the works.
In February, delivery-focused food hall concept Wonder opened its first location inside a Walmart, with plans to open several more in partnership with the retailer. That first food hall, in a Quakerstown, Pennsylvania, Walmart, houses eight of Wonder’s proprietary restaurant brands. Customers can mix and match from all of the concepts in a single order.
Mr Gatti’s got its start as The Pizza Place in Stephenville, Texas, in 1964, before rebranding after a move to Austin in 1969. Today, the chain has about 75 open locations in eight states, with an aggressive franchising push underway.
Small, regional restaurant operators may not have “join forces with a mega-retailer” on their personal bingo cards. But, if Walmart sees success with these pairings and continues down this path, it just might provide a boost to some emerging restaurant brands that share a similar consumer demographic with the retail giant.
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