Whether you love or hate McDonald’s, it is undeniable that the chain is extremely convenient, not just due to its fast service or low prices, but because it can be found seemingly everywhere in every corner of the world. For the most part, that is true; there are all kinds of unique McDonald’s locations with special menu items. The chain is so convenient that there are even McDonald’s locations inside of shopping malls, airports, and chain stores.
For several decades, McDonald’s could easily be found inside of Walmart stores. However, after the pandemic, McDonald’s chose to withdraw its presence within Walmart, limiting the amount of operating locations to around 150 in 2021. The reason was simple: Customers showed a major shift in preferences, opting to buy online more than in person, and as such, McDonald’s felt that keeping so many locations open was not financially justifiable.
While McDonald’s isn’t shuttered for good in Walmart, in comparison to its previous numbers, it’s definitely a huge cutback. Previously, the number of McDonald’s locations inside of Walmart stores was over 1,000, so going to a measly 150 is a noticeable change.
The closure of McDonald’s in Walmart: Why and what now?
A good amount of Walmart shoppers mourned the loss of the fast food giant. The removal of most of these McDonald’s locations meant not only a loss of easy access to a cheap meal, but perhaps more importantly the loss of getting a cheap, hot coffee to consume while shopping. Considering the fact that McDonald’s does serve coffee all day long, these closures were definitely viewed as a loss of convenience as a whole.
It may not seem like a big deal for such a giant fast food chain to pull out of Walmart stores, but it’s notable when you take into consideration the fact that Walmart and McDonald’s have had a working partnership for nearly 30 years. The shift was definitely noticed by customers, but from a business standpoint, it was not worth it for McDonald’s to keep these locations open. Not only was foot traffic in physical stores significantly lower after the pandemic, but the Walmart locations don’t have a drive-thru, which is a major component of McDonald’s success in standalone locations.
There is a small silver lining that follows these closures. Rather than vacating the space entirely, Walmart locations are choosing to fill the former McDonald’s areas with new fast food joints. Chains like Taco Bell and Domino’s have been seen occupying many spaces that once belonged to McDonald’s. While it is definitely not an exact replacement, it at least helps fill the void with another fast food option.