Retail giants are always in a silent war. Walmart and Costco compete every week to win over the same type of customer, but this time, one of them has taken the lead with a very unexpected move. Behind this announcement lies something bigger: a strategic alliance that's redefining the rules of the game
Specifically, Walmart has decided to go a step further in its commercial strategy with a move that strengthens its leadership in the sector. The supermarket has just announced an agreement with Wienerschnitzel. It's a real bomb in the sector, which customers are already celebrating and which completely unsettles Costco.
Wienerschnitzel, a chain with history and flavor
Wienerschnitzel was born in California in 1961 as a small hot dog stand. Today, it has more than 340 franchises in 13 U.S. states (13 estados de EE. UU.) and a strong expansion underway. Its menu featuring cheese and chili hot dogs, French fries, and milkshakes has won a legion of fans.
In recent months, the chain has diversified its locations. It's no longer limited to traditional restaurants: it's reached military bases, airports, and theme parks. Now, in this new phase with Walmart, it aims to grow even more and reach millions of customers in the United States.
This is what the Walmart-Wienerschnitzel alliance will look like
The alliance is being implemented with six new restaurants in Walmart stores. These will be located in Alamogordo (New Mexico), Bakersfield (California), Colorado Springs (Colorado), Puyallup (Washington), Reno (Nevada), and Tempe (Arizona). All locations will feature the full menu and Tastee Freez desserts.
Ted Milburn, an executive of the brand, highlights the value of the new model. "These non-traditional formats allow us to modernize our presence," he stated. He believes these spaces will make it easier to reach new audiences and will strengthen the brand in today's landscape.
Shak Turner also valued the agreement. She said the brand is ready for a new era of growth. For her, this step shows that Wienerschnitzel has a lot to offer new franchisees.
Why does this move leave Costco behind?
Walmart was already partnering with brands like McDonald's, Taco Bell, or Subway. This new union with Wienerschnitzel further diversifies its offering. It allows for an experience that goes beyond shopping and focuses on the customer's immediate enjoyment.
Costco, meanwhile, hasn't announced similar moves recently. Its model remains more limited in terms of food partners. With this agreement, Walmart manages to clearly set itself apart from its rival.
Additionally, its ability to generate constant in-store traffic gives Wienerschnitzel an advantage. The visibility, customer flow, and accessible offering position Walmart as an ideal partner and leave Costco out of this new expansion format.