Dive Brief:
- Beginning in June, Subway and Walmart will allow customers to order Subway meals directly through Walmart’s app or Walmart.com for delivery within 30 minutes or less, according to a Thursday press release.
- Subway is the first restaurant to be integrated with Express Delivery, per the press release.
- Subway is Walmart’s largest in-store restaurant tenant and has had a relationship with the big-box retailer since 2004.
Dive Insight:
The additional delivery channel could help Subway franchisees operating inside Walmart stores boost sales, especially as the chain continues to close traditional restaurants across its system. Subway has also been leaning on menu innovation to try to boost traffic across its system. It rolled out a Fresh Value Menu with meals priced under $5 earlier this year.
Subway delivery is available from select Walmarts in Connecticut, Florida, Georgia, Ohio, Pennsylvania and Texas and will expand to roughly 1,400 locations by the end of the summer, per the press release.
If it is available based on addresses associated with their accounts, customers will see the option to order Subway directly in the Walmart app or website. Customers can browse Subway’s menu, customize their meals and add to their cart. The QSR’s options can be ordered on their own or alongside grocery or household items.
As of June 1, Subway began requiring franchisees within Walmarts to participate in the Walmart’s third-party delivery program, per the company’s franchise disclosure document. Orders placed through Walmart are routed to the point-of-sales system of the guest’s chosen restaurant.
Franchisees are expected to keep their POS system up to date to ensure they can accept these orders. Walmart is paying franchisees on a weekly basis for orders fulfilled in the previous week, per the disclosure document. There are currently no fees to participate, but there will be credit card processing fees on these transactions.
