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. Jim Phillips, CEO of Mr. Gatti’s, 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 chain also developed a convenience store model earlier this year to spark expansion into this other nontraditional channel. Those locations span 800 to 1,500 square feet, compared to its traditional 12,000 to 16,000 square foot model that typically contains an arcade or game room. The c-store model is similar to its 1,200-square foot delivery-and-takeout-only model.
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.
