August 27, 2024
Photo by Marques Thomas on Unsplash
What Should Other Retailers Learn From the Walmart+ and Burger King Team-Up?
Walmart+ has launched its first dining perk through a new partnership with Burger King. Starting now, Walmart+ members will receive a 25% discount on all digital orders placed through the Burger King app or website. Additionally, beginning next month, they will get a free Whopper every three months with any purchase.
Burger King’s Chief Marketing Officer Pat O’Toole praised the collaboration in Walmart’s press release, highlighting the alignment of both companies’ value-driven approaches. Walmart+ Senior Vice President and General Manager Venessa Yates emphasized that the new benefit underscores Walmart+’s commitment to enhancing membership value and convenience.
To access these benefits, members must link their Walmart+ account to their Burger King Royal Perks account via the BK app or website. The discount and quarterly Whopper offer are available at participating locations.
“The inclusion of a Burger King benefit in our Walmart+ membership portfolio is exciting. We consistently strive to offer benefits that focus on our members, aligning with our commitment to deliver undeniable value and convenience. We’re confident our members will welcome the additional savings, and we’re thrilled to collaborate with a trusted brand like Burger King to offer this benefit.”
Venessa Yates, senior vice president and general manager of Walmart+, via Walmart
Regarding its decision to partner with Burger King, the company stated that the benefits are selected based on member insights and are “carefully curated to provide a unique and valuable experience for members.”
According to Food & Wine, the partnership deal is good for Walmart, but it may benefit Burger King even more, as it is “in dire need of enticing customers back into its stores.” In August, Restaurant Brands International, Burger King’s parent company, revealed during an earnings call that same-store sales at the fast-food chain decreased by 0.1% in the second quarter, with expectations for continued sluggish sales.
The Progressive Grocer called this a “first-of-its-kind partnership,” adding that, according to Walmart, this new perk aims to help members save both time and money, accommodating their busy lifestyles where grocery shopping, meal planning, and cooking might not always be practical. As reported by EnterpriseAppsToday, a majority of Americans “eat fast food at least 1 to 3 times every week,” so this perk may be extra beneficial to those who already have Walmart+ and might help convince those who don’t to become a member.
An article on The Ascent, however, explained why getting a Walmart+ membership is not the right choice for everyone, regardless of all the special benefits. Personal finance writer Maurie Backman listed three reasons for not choosing to sign up for Walmart+: She already has an Amazon Prime membership with free two-day shipping, she has a Costco membership that helps her save on gas, and she doesn’t personally need access to another streaming service — Paramount+, in this case.
The official Walmart+ website currently lists the following included perks of Walmart+:
- Burger King Savings: 25% off digital orders daily at participating locations.
- Free Delivery From Store: $0 delivery fees on groceries and more with a $35 minimum order.
- Free Shipping With No Order Minimum: Shipping is free for eligible items with no minimum purchase required.
- Member Savings on Fuel: Save 10¢ per gallon at over 14,000 locations nationwide.
- Video Streaming With Paramount+: Access over 40,000 episodes, movies, and live sports with a Paramount+ subscription.
- Auto Care: Free tire repair and road hazard warranty at Walmart Auto Care Centers.
- Walmart+ Travel: Earn up to 5% Walmart Cash on travel bookings through Expedia.
- Returns From Home: Schedule returns from home with no need for printing or repackaging.
- Early Access: Get early access to special product releases and online deals.
- Mobile Scan & Go: Shop and check out in stores using your phone.
BrainTrust
Carol Spieckerman
President, Spieckerman Retail
Melissa Minkow
Director, Retail Strategy, CI&T
David Naumann
Marketing Strategy Lead - Retail, Travel & Distribution, Verizon
Recent Discussions
Discussion Questions
How might incorporating fast-food perks into a retail membership program like Walmart+ reshape consumer expectations and loyalty in both the retail and dining industries?
In what ways could Walmart+ and Burger King use data from their partnership to refine their business models and improve customer engagement?
What strategies could other companies use to integrate lifestyle benefits into their loyalty programs, and how might this influence industry standards and consumer behavior?
Poll
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Burger King needs the sales. Walmart needs to enhance the value of Walmart+. So, I chalk this up as something of a win for both sides. Of course, quite how much this will be used remains to be seen. But I do like the way in which Walmart is adding more bells and whistles to its membership program over time. It’s not at the level of Amazon’s Prime program, of course, but Walmart has made good progress and it’s helping with their strong advance in ecommerce.
I think of all the Walmart+ perks, this is the least compelling one in terms of attracting new members, but for those who were already going to sign up, it definitely doesn’t hurt. It’s certainly a creative benefit, and I’d expect more surprising yet sensible partnerships like this in the future for other memberships.
Yes, creative! Compelling? It’s just another addition to the program that confuses members like so many other subscription services.
You gotta love “According to Food & Wine”! Fast food purveyors are trying to speed digital ordering adoption without seeming ham-handed. The Burger King/Walmart partnership covers a lot of ground on that front. A 25% discount isn’t chump change for loyal Burger King customers and the opportunity to reel more consumers into Walmart’s Plus ecosystem is a nice lather, rinse, repeat case study. This is a no-sweat hookup for Walmart and potential game-changer for Burger King.
“ A 25% discount isn’t chump change for loyal Burger King customers…” Yes, a big discount. Will the franchisees be very excited?
I think that this partnership will likely have appeal to budget conscious shoppers, but the real question is why BK and not McDonalds, which are located in Walmarts? That partnership would drive more frequent traffic to the stores, as well as the (less-convenient than standalone restaurants) McDonalds inside them.
McDonald’s seems like a more natural pairing, but WalMart is trying to get a better rep. My thought is that is is swell, for both parties probably, but what happens when every retailer – or let’s just say a handfull of big players – WM, Target, etc. – offers perks at a multitude of competing retailers (be they restaurants, gas stations, …) ?? Logic suggests the offerings be exclusive, but it’s going to be the stronger player that sets the terms, and while we needn’t give much thought as to whether WM or BK is stronger, Taco Bell versus , say, Kohl’s might be a challenge; I see a crazy quilt of relationships, akin to the poltical alliances that preceded WWI….well, less climactic, hopefully.
This added perk to Walmart+ expands the membership’s attractiveness without any real downside for either brand. Consumers are price-sensitive, and a 25 percent discount is hard to ignore. The key to a successful platform membership program such as Prime and Walmart+ is the dual effect of integrating into the members’ daily routines while delivering clear and relevant value—hitting consumers’ emotional and economic buttons.
Food gets more digital. Adding Burger King perks to the Walmart+ membership shifts consumer habits by rewarding online orders for fast food and groceries. Consumers save time and money on more of their meals, which can increase satisfaction and loyalty.
Just as Amazon has endeavored to surround its customer/members with a set of services that ties them to the core brand, Walmart is contriving a set of offerings designed to make Walmart+ too good to leave.
Discounted BK burgers might not do it for me, but free local delivery sounds pretty sweet, and fuel discounts have already demonstrated their “stickiness.” Others might find the free Paramount+ access worth the annual fee.
Burger King franchisees will probably appreciate some extra traffic, as long as they don’t foot too much of the expense for the discounts.
There is a possibility Walmart+ Burger King will result in a 2% lift for Burger King, but I doubt it will have a significant effect on Walmart.
Walmart already has a vast and loyal customer base, making it less reliant on such partnerships to drive traffic. Additionally, Walmart’s diverse product offerings mean that a collaboration with a single fast-food chain may not significantly impact its overall sales. Therefore, the expected benefits for Walmart are likely to be minimal compared to those for Burger King.
It is unlikely that Burger King’s 25% discount will attract new customers, but given its presence on Walmart+, it will likely prompt existing customers to make a few more orders.
Burger King could benefit from increased brand visibility by being featured on Walmart’s platforms. This partnership might also lead to additional marketing opportunities and cross-promotions, further enhancing Burger King’s reach. Finally, the collaboration could provide valuable data insights into customer preferences and behaviors, helping Burger King tailor its offerings more effectively.
For the thousands of people who don’t enjoy the whopper, even the free one won’t motivate them to take advantage of the bonus. Db
This isn’t necessarily a completely positive strategy for both Walmart and Burger King. Here is my take…
For Walmart, it is another perk for Walmart+ members that may attract a few more members or increase the loyalty of its current members. Based on the article, I assume that there is no cost to Walmart for the discount Burger King is offering its customers. On the downside, the benefit encourages more people to choose fast food instead of purchasing more groceries at Walmart. While this isn’t an attractive perk for everyone, my guess is that Walmart customers are, for the most part, regular fast food customers.
For Burger King, it is great brand exposure and a perk that will help drive more traffic to their restaurants. The downside is that it comes with a heavy price tag that many franchisees may not want to absorb.
Overall, I think it is a bigger win for Walmart than Burger King.
This is a win-win for both parties as BK will see an increase in traffic and Walmart notches another perk in its membership program. Might a tidal wave of these partnerships be forming with other retailers? I’d bet on it.
This is an interesting expansion of Walmart+ perks that will be worth watching – not because of the tie-in with Burger King (which will likely benefit Burger King more than Walmart) – but to see if it is the catalyst to additional external partnerships for this loyalty program.
A continued expansion into a broader perk ecosystem could be compelling for Walmart customers, driving membership into the Walmart+ program and could shift expectations in general as to what will be expected of membership programs in the future in a way that impacts a broader set of retail and dining brands compelled to retain and nurture loyalty within their core customers.
This is a win for Walmart+, which continues to expand the benefits of membership to compete with Amazon Prime. It’s a potential win for BK, that will depend on the number of members who will go through the bother of linking their Walmart+ account to the BK Royal Perks account. That is potential point of friction.
I’m not sure Walmart really needs this to attract new customers. On the other hand, Burger King should see some new customers as a result. Personally, I’ve not been to Burger King in a while, and for no really good reason other than that, I just never think of them. As a Walmart+ member, I’ve just changed my lunch plans.
My fear is that this relationship will become like the streaming service partnerships. As retailers look to compete and find like/compatible partners, shoppers will have to sort through costs-benefits beyond their engagement with the primary retailer. If Amazon partners with McDonalds, then how will Walmart respond?
The lesson learned is to plan ahead. When Walmart developed the Walmart+ concept, partnerships should have been part of the Phase 2. Why? Because keeping the value proposition “fresh” is part of the game in order to maintain/lift overall satisfaction and in turn ensure the highest rate of annual renewal. Day 1 when you signed up for Amazon Prime you had certain expectations as to what you would get for your $100+ access. In turn, programming and discounts at Whole Foods Market followed with special benefits. Walmart and Burger King are a perfect match in terms of demographics and customer journeys on a daily basis. Giving savings on burgers, fries and chicken sandwiches plus other savings via the BK mobile app to members shows that Walmart+ appreciates you and does not negatively impact grocery share of market. Rather it helps to drive frequency but more importantly for a struggling fast food chain helps to influence turning right instead of left into McDonald’s or Wendy’s. What other partnerships does Walmart+ have cooked up? And does this mean that Target and other big box stores will follow?
The Walmart+ and Burger King partnership is a smart move that could really shift how we view retail memberships. Adding fast-food perks brings a whole new level of convenience and value. It’ll be interesting to see how this influences consumer expectations and if other brands start offering similar benefits.
It is a competitive world out there and expectations are constantly being raised across everything. Other retailers can learn that the big guys like Walmart are open to partnerships and confident enough to execute them, even if they are vying for the same dollars (dining out vs making dinner from WMT bought groceries). Will this drive more trips to Burger King or just get consumers a 25% discount now when they go.
As for a data play, there might be some learnings but I can’t see the really useful data play here, yet. I would hope insights from data got them here about an overlap or affinity between WMT and BK shoppers.
The strategy of partnership can be a valuable tool. My AMEX gives me so many I don’t even know what half of them are, but I am sure someone is taking advantage of those. If WMT can continue to add value to their + member base, it might keep them loyal.
Burger King needs this stimulus while for Walmart it is another reason to subscribe to Walmart+. Not much more to be said.
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Burger King needs the sales. Walmart needs to enhance the value of Walmart+. So, I chalk this up as something of a win for both sides. Of course, quite how much this will be used remains to be seen. But I do like the way in which Walmart is adding more bells and whistles to its membership program over time. It’s not at the level of Amazon’s Prime program, of course, but Walmart has made good progress and it’s helping with their strong advance in ecommerce.
I think of all the Walmart+ perks, this is the least compelling one in terms of attracting new members, but for those who were already going to sign up, it definitely doesn’t hurt. It’s certainly a creative benefit, and I’d expect more surprising yet sensible partnerships like this in the future for other memberships.
Yes, creative! Compelling? It’s just another addition to the program that confuses members like so many other subscription services.
You gotta love “According to Food & Wine”! Fast food purveyors are trying to speed digital ordering adoption without seeming ham-handed. The Burger King/Walmart partnership covers a lot of ground on that front. A 25% discount isn’t chump change for loyal Burger King customers and the opportunity to reel more consumers into Walmart’s Plus ecosystem is a nice lather, rinse, repeat case study. This is a no-sweat hookup for Walmart and potential game-changer for Burger King.
“ A 25% discount isn’t chump change for loyal Burger King customers…” Yes, a big discount. Will the franchisees be very excited?
I think that this partnership will likely have appeal to budget conscious shoppers, but the real question is why BK and not McDonalds, which are located in Walmarts? That partnership would drive more frequent traffic to the stores, as well as the (less-convenient than standalone restaurants) McDonalds inside them.
McDonald’s seems like a more natural pairing, but WalMart is trying to get a better rep. My thought is that is is swell, for both parties probably, but what happens when every retailer – or let’s just say a handfull of big players – WM, Target, etc. – offers perks at a multitude of competing retailers (be they restaurants, gas stations, …) ?? Logic suggests the offerings be exclusive, but it’s going to be the stronger player that sets the terms, and while we needn’t give much thought as to whether WM or BK is stronger, Taco Bell versus , say, Kohl’s might be a challenge; I see a crazy quilt of relationships, akin to the poltical alliances that preceded WWI….well, less climactic, hopefully.
This added perk to Walmart+ expands the membership’s attractiveness without any real downside for either brand. Consumers are price-sensitive, and a 25 percent discount is hard to ignore. The key to a successful platform membership program such as Prime and Walmart+ is the dual effect of integrating into the members’ daily routines while delivering clear and relevant value—hitting consumers’ emotional and economic buttons.
Food gets more digital. Adding Burger King perks to the Walmart+ membership shifts consumer habits by rewarding online orders for fast food and groceries. Consumers save time and money on more of their meals, which can increase satisfaction and loyalty.
Just as Amazon has endeavored to surround its customer/members with a set of services that ties them to the core brand, Walmart is contriving a set of offerings designed to make Walmart+ too good to leave.
Discounted BK burgers might not do it for me, but free local delivery sounds pretty sweet, and fuel discounts have already demonstrated their “stickiness.” Others might find the free Paramount+ access worth the annual fee.
Burger King franchisees will probably appreciate some extra traffic, as long as they don’t foot too much of the expense for the discounts.
There is a possibility Walmart+ Burger King will result in a 2% lift for Burger King, but I doubt it will have a significant effect on Walmart.
Walmart already has a vast and loyal customer base, making it less reliant on such partnerships to drive traffic. Additionally, Walmart’s diverse product offerings mean that a collaboration with a single fast-food chain may not significantly impact its overall sales. Therefore, the expected benefits for Walmart are likely to be minimal compared to those for Burger King.
It is unlikely that Burger King’s 25% discount will attract new customers, but given its presence on Walmart+, it will likely prompt existing customers to make a few more orders.
Burger King could benefit from increased brand visibility by being featured on Walmart’s platforms. This partnership might also lead to additional marketing opportunities and cross-promotions, further enhancing Burger King’s reach. Finally, the collaboration could provide valuable data insights into customer preferences and behaviors, helping Burger King tailor its offerings more effectively.
For the thousands of people who don’t enjoy the whopper, even the free one won’t motivate them to take advantage of the bonus. Db
This isn’t necessarily a completely positive strategy for both Walmart and Burger King. Here is my take…
For Walmart, it is another perk for Walmart+ members that may attract a few more members or increase the loyalty of its current members. Based on the article, I assume that there is no cost to Walmart for the discount Burger King is offering its customers. On the downside, the benefit encourages more people to choose fast food instead of purchasing more groceries at Walmart. While this isn’t an attractive perk for everyone, my guess is that Walmart customers are, for the most part, regular fast food customers.
For Burger King, it is great brand exposure and a perk that will help drive more traffic to their restaurants. The downside is that it comes with a heavy price tag that many franchisees may not want to absorb.
Overall, I think it is a bigger win for Walmart than Burger King.
This is a win-win for both parties as BK will see an increase in traffic and Walmart notches another perk in its membership program. Might a tidal wave of these partnerships be forming with other retailers? I’d bet on it.
This is an interesting expansion of Walmart+ perks that will be worth watching – not because of the tie-in with Burger King (which will likely benefit Burger King more than Walmart) – but to see if it is the catalyst to additional external partnerships for this loyalty program.
A continued expansion into a broader perk ecosystem could be compelling for Walmart customers, driving membership into the Walmart+ program and could shift expectations in general as to what will be expected of membership programs in the future in a way that impacts a broader set of retail and dining brands compelled to retain and nurture loyalty within their core customers.
This is a win for Walmart+, which continues to expand the benefits of membership to compete with Amazon Prime. It’s a potential win for BK, that will depend on the number of members who will go through the bother of linking their Walmart+ account to the BK Royal Perks account. That is potential point of friction.
I’m not sure Walmart really needs this to attract new customers. On the other hand, Burger King should see some new customers as a result. Personally, I’ve not been to Burger King in a while, and for no really good reason other than that, I just never think of them. As a Walmart+ member, I’ve just changed my lunch plans.
My fear is that this relationship will become like the streaming service partnerships. As retailers look to compete and find like/compatible partners, shoppers will have to sort through costs-benefits beyond their engagement with the primary retailer. If Amazon partners with McDonalds, then how will Walmart respond?
The lesson learned is to plan ahead. When Walmart developed the Walmart+ concept, partnerships should have been part of the Phase 2. Why? Because keeping the value proposition “fresh” is part of the game in order to maintain/lift overall satisfaction and in turn ensure the highest rate of annual renewal. Day 1 when you signed up for Amazon Prime you had certain expectations as to what you would get for your $100+ access. In turn, programming and discounts at Whole Foods Market followed with special benefits. Walmart and Burger King are a perfect match in terms of demographics and customer journeys on a daily basis. Giving savings on burgers, fries and chicken sandwiches plus other savings via the BK mobile app to members shows that Walmart+ appreciates you and does not negatively impact grocery share of market. Rather it helps to drive frequency but more importantly for a struggling fast food chain helps to influence turning right instead of left into McDonald’s or Wendy’s. What other partnerships does Walmart+ have cooked up? And does this mean that Target and other big box stores will follow?
The Walmart+ and Burger King partnership is a smart move that could really shift how we view retail memberships. Adding fast-food perks brings a whole new level of convenience and value. It’ll be interesting to see how this influences consumer expectations and if other brands start offering similar benefits.
It is a competitive world out there and expectations are constantly being raised across everything. Other retailers can learn that the big guys like Walmart are open to partnerships and confident enough to execute them, even if they are vying for the same dollars (dining out vs making dinner from WMT bought groceries). Will this drive more trips to Burger King or just get consumers a 25% discount now when they go.
As for a data play, there might be some learnings but I can’t see the really useful data play here, yet. I would hope insights from data got them here about an overlap or affinity between WMT and BK shoppers.
The strategy of partnership can be a valuable tool. My AMEX gives me so many I don’t even know what half of them are, but I am sure someone is taking advantage of those. If WMT can continue to add value to their + member base, it might keep them loyal.
Burger King needs this stimulus while for Walmart it is another reason to subscribe to Walmart+. Not much more to be said.