McDonald’s closing hundreds of locations inside Walmart stores

A decades-old partnership between two giants in their sectors is not what it used to be.

McDonald’s is closing hundreds of restaurants that are located inside Walmart stores throughout the country. The closings will leave McDonald’s with about 150 sites inside Walmart by the end of this summer, down from a peak of about 1,000. The news was first reported by The Wall Street Journal.

McDonald’s has had in-store restaurants at Walmart stores for about 30 years. In recent years, however, the quick-serve giant has been gradually downsizing its footprint. The pandemic caused McDonald’s to accelerate the closings as consumers increasingly opt for drive-thru.

Walmart plans to convert the former McDonald’s locations into other types of restaurants and services, including some with a more regional feel or unique spin, reported CNBC. The retailer is testing locations with Taco Bell and Domino’s Pizza, a spokesperson told CNBC, and is some locations, the vacant space has become other types of shops that offer a wide range of products, from tool rentals to hair braiding.