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Dive Brief:
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7 Brew has opened its first walk-thru location inside a Walmart Supercenter in Springdale, Arkansas, according to an emailed press release.
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Partnering with Walmart will help 7 Brew reach new customers and diversify its development model, 7 Brew President Chris Dawson, said in a statement.
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The coffee brand has rapidly expanded over the last two years. In 2023, it had 180 units, and surpassed 300 stores last year. It currently has over 370 units across 32 states, according to the press release.
Dive Insight:
Entering the retail space will help 7 Brew enhance brand awareness as it works toward becoming a nationwide brand. The chain’s rapid growth is aided by its use of modular construction in its drive-thru-only restaurants. This allows the company to bulk-order materials, create structures and fabricate a backlog of buildings that can be placed at a site at any time. These modular builds can be completed in eight to 10 weeks.
7 Brew has a strong loyalty base, with over 95% of its transactions coming from rewards members, according to AdAge. Face-to-face interactions at the drive-thru or walk-up window are key to the chain’s strategy. Baristas typically have preferred drinks saved under a customer’s rewards profile, allowing them to quickly prepare beverages.
Other chains are also using Walmart to expand and build brand awareness. Nozzleman Pizza, Mr. Gatti’s Pizza, Richtech Robotics and Crave Hot Dogs & BBQ have all partnered with Walmart within the past year to grow their non-traditional presence. The expansion of restaurant options could also help Walmart boost its traffic, which declined by 17.7% during Q1 2024, according to Pass_by.
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