Wahlburgers CEO Sets the Record Straight on Hy-Vee Partnership Dissolution

The Wahlburgers CEO has explained the details behind the recent dissolution of the Hy-Vee partnership. The CEO says that despite the celebrity status of actors Mark and Donnie Wahlberg, whose names are partially behind the brand, the company no longer benefits from partnering with the grocery chain to distribute the burgers. Let’s look at what we know.

Wahlburgers CEO Randy Sharpe Said This Was Part of the Larger Plan

In a candid conversation on Nation’s Restaurant News’ podcast Take-Away, Wahlburgers CEO Randy Sharpe set the record straight regarding the company’s recent parting of ways with Hy-Vee. The move, which sparked headlines about the closure of nearly 80 Wahlburgers locations, is less about retreat and more about strategic realignment, according to Sharpe.

“It’s not 79 restaurants closing,” Sharpe clarified. “If you saw what was being shuttered, it’s a food court kiosk. It’s not a full-service restaurant, and it wasn’t a significant revenue driver for either side.”

Wahlburgers, the celebrity-backed burger chain founded by Mark, Donnie, and Chef Paul Wahlberg, partnered with Hy-Vee in 2017 to operate branded kiosks inside grocery stores. However, the model never quite fit into the brand’s long-term vision.

Sharpe, who took the helm about a year ago, has focused on ensuring growth happens in the “right way” — with quality operators, strategic locations, and aligned visions. “Growth is only good when it’s the right growth,” he emphasized. “It’s not just about opening a new location. It’s about partnering with great restaurateurs who share our vision and can deliver the Wahlburgers experience.”

That philosophy clashed with Hy-Vee’s approach. “Hy-Vee is a great grocery operator, but they’re not restaurant operators,” Sharpe noted. The company will now assume corporate control of the standalone Wahlburgers restaurant at the Mall of America, a location Sharpe described as “very beneficial for us.”

While the exit from Hy-Vee’s kiosks marks the end of one chapter, it also highlights Wahlburgers’ commitment to brand integrity. “We have to have our own identity if we’re going to venture into nontraditional opportunities,” Sharpe said. “We can’t be muddled in with other food court options. We have a responsibility to our owners, investors, and franchise operators to protect the brand.”

Looking ahead, Wahlburgers is doubling down on its flexible format strategy, which includes full-service restaurants, limited-service models, drive-thrus, and nontraditional venues like airports and fairs. “We’re opening the largest Wahlburgers to date in the San Juan Mall in Puerto Rico,” Sharpe shared, calling it “the Disneyland of the brand.” Additionally, the company is expanding its drive-thru concept, with the first location in Australia exceeding expectations.

Sharpe remains optimistic about the brand’s future. “We’ve learned from the past, and we’re focused on quality, not quantity,” he concluded. “This isn’t about closing locations; it’s about ensuring that every Wahlburgers represents what we stand for — great food, great service, and great partnerships.”

Hy-Vee Initially Had High Hopes

Wahlburgers’ introduction into Hy-Vee stores was initially part of the grocer’s store-within-a-store concept, designed to compete with burgeoning retailers like Amazon and Walmart.

Collaboration to develop store-within-a-store concepts has risen in popularity for a variety of reasons.

In certain circumstances, such as the long-running Best Buy/Samsung partnership, the store-within-a-store provides shoppers with a tailored brand experience with products that are similar to what they may already be looking for.

In other circumstances, businesses employ the approach to branch out from their primary offering and provide their customers with something unique. For example, Walmart expanded a store-within-a-store collaboration with CarSaver in 2018 to provide in-store shoppers with detailed car-buying guidance.

In 2024, however, Hy-Vee shifted its focus to digital innovations, partnering with Grocery TV to deploy more than 10,000 screens throughout its over 400 sites to assist vendors and other potential advertisers in reaching “millions of shoppers across Hy-Vee’s stores with high-impact digital advertising.”