Walmart’s 30-year marriage with McDonald’s broke down in 2021. All but about 150 Walmart McD’s stores closed. This January, Starbuck’s moved in. And now, Walmart is partnering with Burger King, in what may be a revolutionary alliance…
The classic Burger King Whopper: Soon to be the new fave of Walmart fans?
Walmart apparently learned some important lessons about in-store resto partnerships over its long relationship with McDonald’s. Perhaps the most crucial was, ‘times change’. People – and organiza-tions – have to change with the times to remain viable, much less successful. And it’s become clear that a superstore like Walmart will do much better in the 21st Century hosting an up-scale coffee shop like Starbucks than a skeleton-operation burger joint…
The smell of freedom…
… Once again boasts hints of the grill. Walmart is taking advantage of the flexibility it’s gained by breaking with McDonald’s. It’s not adding Burger King restos to its stores. But it’s forging a close relationship with the world’s second most-favourite burger brand through the Walmart+ loyalty program.
“The inclusion of a Burger King benefit in our Walmart+ membership portfolio is exciting,” Venessa Yates, Senior Vice President and General Manager of Walmart+, shared in a statement. She explained that the benefits were designed, “based on member insights, and are carefully curated to provide a unique and valuable experience for members.”
Chief Marketing Officer for Burger King North America Pat O’Toole agreed, it’s a match made in… the kitchen. O’Toole says Walmart and BK share a philosophy of, “offering […] high-quality products for a great value, making this partnership a natural fit.”
How it works
Couldn’t be simpler… “Walmart+ members can access the deal using the BK App or via bk.com,” Food & Wine explains. “To activate it, members need to link their Walmart+ to an existing Burger King Royal Perks account (or create one for free, then link the two accounts). After that, members can go onto the BK app, select their local participating Burger King location, and add the discount to their cart when they place their order.”
A deal with such momentous potential for the partners and their clientele couldn’t be easier or less costly to implement. No resto construction to perform or pay for. No additional staff to hire. No new taxes or operating costs to incur. Just some background computer programming to link the Walmart and BK membership programs. That aspect of the alliance, alone, is ‘business genius’.
Facts and figures…
Earlier this month, Restaurant Brands International (RBI), the parent company of BK, reported that BK’s overall sales had dipped in Q2. And were expected to remain ‘soft’ for the remainder of this year.
“We clearly saw softer sales than expected across our businesses in Q2,” said RBI executive Chairman J. Patrick Doyle. “It’s not yet clear when we’ll see the category strengthen.”
My take
The deal is gold for both Walmart and BK. The burger giant gains access to the superstore’s 59+ mil-lion loyalty program members. And Walmart gets to gift its members with some attractive savings on what reviewers have consistently ruled are the best (‘flame-grilled’) burgers on the Fast Food scene.
I’m no financial or business mogul. But I can clearly see major benefits for both ‘dining partners’ developing out of the union. I think it’s fair to say that Walmart+ members who’ve never tried BK’s wares before will at least give the brand a taste test.
I also risk the prediction that the Walmart-Burger King deal – if it proves a big hit – may well become the blueprint for Fast Food strategic alliances in the future…
~ Maggie J.