Dive Brief:
- Texas-based Mr. Gatti’s Pizza plans to open 92 corporate-owned units inside Walmart locations across Texas, Louisiana, Oklahoma and Kentucky, the restaurant chain said in a press release Thursday.
- The partnership will kick off during the fourth quarter with the opening of 12 units inside the retailer’s stores.
- This expansion strategy brings the chain's total units open or under development to 230, nearly doubling its national footprint and extending it into new markets.
Dive Insight:
The partnership could lead to additional Mr. Gatti’s showing up inside Walmart locations in other states, the press release said. Mr Gatti’s CEO Jim Phillips said Walmart approached the chain to open locations.
“We’ve been vocal for years now about our ambitious growth goals, and this partnership with Walmart enables us to accelerate our expansion into new areas while continuing to strengthen our presence in familiar communities,” Phillips said.
The addition of Mr. Gatti’s fits within Walmart’s strategy to bolster its in-store dining offerings. After it wound down its 30-year partnership with McDonald’s in 2021, which had 1,000 units inside Walmarts at its peak, the chain has been exploring other options. That same year, the retailer partnered with Ghost Kitchen Brands, and also added concepts like Nathan’s Famous, Wow Bao, The Cheesecake Factory, Quiznos and Saladworks. Walmart also added la Madeleine's fast-casual format to 10 locations in the Dallas-Fort Worth area in 2021.
Earlier this year, several Walmart stores added in-store poke through a deal with Uncle Sharkii Poke Bar. Wetzel’s Pretzels has also been opening units inside the large retailer.
The moves by Walmart to add in-store restaurant partners come at a time when grocers are ramping up foodservice offerings, including ready-made and made-to-order meal options. Giant Food, for example, is dedicating more space and cases to meal options in its new stores.
