Walmart enters restaurant delivery market
Walmart announced a rapid entry into restaurant delivery, adding Subway, Dunkin’ and Papa Johns to its platform within three months and branding itself as a “rapidly emerging contender” in the food-delivery space.
Walmart steps into restaurant delivery
The Bentonville, Arkansas retailer operates more than 4,600 stores across all 50 states and reaches roughly 90% of the U.S. population with a short drive. It employs about 1.6 million people, making it the nation’s largest private-sector employer.
Online sales hit $150.4 billion in fiscal 2026, up over 24% year over year and representing roughly one-fifth of Walmart’s total revenue. While the company does not split delivery from pickup or shipping, store-fulfilled delivery grew 43% year over year last quarter, with 37% of orders arriving in under three hours.
Walmart’s own driver network, called Spark, launched in 2018 and functions like other gig-work platforms. A 2026 settlement revealed more than 1 million drivers have completed over 272 million deliveries through Spark, dwarfing the roughly 7 million active couriers reported by rivals DoorDash and Uber Eats.
Walmart Targets Combo Orders
Walmart is betting on “combo” orders, encouraging shoppers to add a sub, coffee or pizza to existing grocery carts. Since the June launch of Subway delivery, 65% of those orders have included additional Walmart items, and the retailer matches Subway’s in-store menu prices—a contrast to the typical mark-ups on third-party apps.
Industry response and hurdles
The data suggests a modest boost to basket size, and the real test will be whether the convenience of bundled orders translates into sustained demand. If customers repeatedly choose to add a restaurant item to a grocery delivery, Walmart could see higher driver utilization and lower per-order costs. Conversely, occasional add-ons may limit revenue impact.
Chris Lyn-Sue, Papa Johns’ global CMO, said the partnership could reach a “vast majority” of the chain’s more than 3,000 stores, many of which sit within a seven-mile radius of a Walmart. He noted that most Walmart-driven customers are likely new to the brand, offering a fresh acquisition channel.
DoorDash currently commands about 67% of U.S. food-delivery sales, with Uber Eats at 25% and Grubhub at 8%, according to Bloomberg SecondMeasure. Those platforms boast deep relationships with local independent restaurants, a depth that Walmart will find hard to replicate quickly.
Streamlining Delivery Operations
Walmart’s spokesperson said the company is “using technology to coordinate restaurant preparation, order pickup, delivery routing and driver timing,” and that these capabilities will expand as more brands join the service.
Walmart’s expansion into restaurant delivery will rely on its existing infrastructure, including partnerships with brands already operating inside its stores. Subway, for example, has locations in nearly 1,000 Walmart supercenters, meaning delivery orders can be fulfilled without leaving the premises. Dunkin’ operates inside roughly 800 Walmart stores nationwide, while Papa Johns has no direct store presence but will leverage Walmart’s delivery network to reach customers across its 3,000+ locations.
The retailer’s ability to bundle restaurant orders with grocery purchases—already accounting for 65% of Subway delivery orders—could further streamline operations by reducing the need for separate pickup points outside Walmart stores. The integration process varies by brand. Subway’s in-store delivery launch in June required minimal adjustments, as orders could be fulfilled by existing store staff before being handed off to Spark drivers.
Papa Johns, however, must implement new technology to sync orders between its locations and Walmart’s system. The chain is testing a pilot program in select markets to refine coordination between kitchen prep, pickup timing, and driver routing. Walmart’s spokesperson confirmed that the company is investing in backend tools to standardize these workflows, including real-time tracking of restaurant order status and dynamic rerouting if delays occur.
For brands without Walmart store locations, such as Papa Johns, the retailer is mapping delivery zones to ensure orders can be picked up within a seven-mile radius, a threshold that covers most of the chain’s U.S. footprint. Walmart’s pricing strategy could also set it apart from competitors.
Competitive Pricing Strategy
This approach aligns with its broader e-commerce model, where it avoids markups on grocery items to drive volume. Analysts suggest this could incentivize customers to use Walmart’s app for both grocery and restaurant orders, particularly if they perceive delivery costs as more transparent. Yash Babar, a University of Wisconsin professor, noted that the lack of price surcharges might encourage occasional delivery users to shift from DoorDash or Uber Eats, especially for combo orders where the grocery portion offsets any potential delivery expenses.
Restaurants stand to benefit from reduced dependency on dominant delivery platforms. Chris Lyn-Sue emphasized that Walmart’s partnership provides a new customer acquisition channel, with a majority of initial orders likely coming from first-time users.
Walmart’s ability to bundle restaurant delivery with holiday promotions, such as pairing a pizza with Thanksgiving leftovers, could further drive incremental sales. Chris Lyn-Sue highlighted that the retailer’s monthly 500 million website visitors create a vast untapped audience, particularly for brands like Papa Johns that rely on delivery for growth.
The retailer’s advantage lies in its ability to offer restaurants a built-in audience of 150 million weekly shoppers, many of whom already use its app for groceries. However, replicating DoorDash’s network of independent eateries, where 67% of U.S. delivery sales occur, will require significant effort, as Walmart’s current partnerships skew toward national chains rather than local businesses.
