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Forget McDonald’s, Walmart adds a new restaurant partner

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Forget McDonald’s, Walmart adds a new restaurant partner

Walmart partners with a local favorite instead of huge chains to strategically outdo rivals.

Pessimists would say that a local pizza and entertainment restaurant in a small town near Fort Worth, Texas, would never become a successful chain. However, locals knew its delicious pizza and homemade ranch would win the hearts of millions of Americans if given the chance. 

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Mr Gatti’s Pizza, or Gatti’s as Texas locals call it, is a pizza buffet and entertainment center that offers endless pizza and a wide range of arcades. It was founded in 1969 and has been a family go-to spot for years.

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Although this pizza and entertainment chain was once a single stand-alone restaurant, it now has over 230 active and forthcoming locations across the U.S., with plans to build even more after landing this jackpot partnership.

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Pizza

Mr Gatti’s joins forces with Walmart to open new locations

In July of last year, Gatti’s first announced it had sealed a partnership deal with Walmart  (WMT)  to open 92 new locations across Texas, Oklahoma, Louisiana, and Kentucky, with the first 12 opening in North Texas and Southern Oklahoma in 2024. 

There are currently 15 Gatti’s locations inside Walmart supermarkets, and 23 more are under construction and scheduled to open early this year. The remaining 54 locations are set to open within the next 14 months. 

Additionally, Gatti’s expects to open 10 new stand-alone locations in 2025 to continue expanding and introducing its brand to more audiences.

“The grand opening of these initial locations is a milestone for Mr Gatti’s as we launch our partnership with Walmart,” said Mr Gatti’s Pizza CEO Jim Phillips.

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Although Gatti’s stand-alone restaurants are known for their larger structures, the Walmart locations feature a more modern design that better fits the retail giant’s customer needs.

Each Walmart location is smaller than the usual stand-alone ones yet still offers a full menu with pizzas, wings, salads, and sandwiches that can be ordered using Gatti’s app ahead of time so they can be ready for pickup after all the grocery shopping is done.

“By bringing our restaurants into Walmart, we’re making it easier for families to enjoy our pizza—whether they’re shopping, picking it up to-go, or having it delivered. This first location sets the standard for what customers can expect as we expand in the coming months,” said Phillips.

According to the pizza and entertainment chain, sales increased by 0.4% last year after it expanded its locations to Walmart. 

Walmart’s secret strategy to enhance its shopping experience and promote spending

Walmart wants to enhance its shopping experience by integrating more in-store dining and food options, encouraging higher spending, and increasing revenues. 

Over the last few decades, the retail giant has done so by partnering with popular American fast food chains that equally level its high status among value-focused customers, including Burger King QSRMcDonald’s MCD, Domino’s DPZ, Taco Bell YUM, and Wendy’s WEN.

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