Subway to offer delivery from Walmart locations
Subway integrates with Walmart for new delivery service to boost franchisee sales.
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Subway is partnering with Walmart to offer delivery of its meals from select store locations through Walmart's app. The initiative, which begins in June, aims to generate sales for Subway franchisees as the chain pivots from traditional restaurant models, reaching roughly 1,400 Walmart locations by summer's end.
Why It Matters
This delivery service could enhance unit economics for Subway franchisees in Walmart by expanding their customer reach and potentially increasing order frequency, as it integrates restaurant services with a grocery delivery model.
Subway has announced a new integration with Walmart, starting in June, that allows customers to order Subway meals for delivery through Walmart’s app or website. This initiative, marking Subway as the first restaurant to partner with Walmart’s Express Delivery service, is particularly significant given that Subway is Walmart's largest in-store restaurant tenant, with a partnership dating back to 2004.
The collaboration is aimed at enhancing sales for Subway franchisees within Walmart locations, especially as Subway continues to close traditional restaurant outlets across its system. The introduction of this delivery option comes alongside Subway’s push for menu innovation, including a recently launched Fresh Value Menu featuring meals priced under $5, aimed at attracting more customers.
Initially, the delivery service will be available from selected Walmart stores in Connecticut, Florida, Georgia, Ohio, Pennsylvania, and Texas, with plans to expand to approximately 1,400 additional locations by the end of summer. The integration will allow customers to browse Subway's menu directly within the Walmart platform, enabling them to customize their orders and purchase them along with grocery items.
