Wahlburgers is growing in retail again, but this time not in grocery stores.
About a year ago, Wahlburgers broke off a partnership with the Hy-Vee grocery chain, which had planned to grow the celebrity-owned burger concept at its retail locations. Wahlburgers is owned by the actor Mark Wahlberg and his brothers.
The Hy-Vee deal initially showed promise amid a growing trend of grocery stores beefing up their foodservice offerings. But the arrangement didn’t work for Wahlburgers, said CEO Randy Sharpe.
The 79 outlets Hy-Vee opened were basically “grocery store kiosks” that didn’t represent the brand the way they had hoped, he said.
“Instead of operating Wahlburgers, they were operating their business with our name on it,” said Sharpe. “It just wasn’t a good solution long term, so we moved on from them.”
Hy-Vee sold its minority stake in Wahlburgers to Wahlberg (the actor), who has always been the majority owner. Now the 52-unit burger chain is shifting its growth strategies to take advantage of the brand’s flexible formats.
Wahlburgers, for example, has partnered with licensee Adaptiv Provisions to open three food trailers outside Home Depot stores in Florida.
Wahlburger trailers outside Home Depot stores in Florida. | Photos courtesy of Wahlburgers.
Mobile foodservice isn’t new for the brand. Wahlburgers has trailers the company operates in Boston, and another licensee brings the brand to events, county fairs and race tracks around the country.
But Home Depot has more than 2,500 stores across the country, so that presents a significant white space opportunity, should Home Depot decide to expand on the idea. More Wahlburgers trailers are expected to open this year.
“The brand does really well in captive market, and it’s another opportunity in a captive market to grow our footprint,” said Sharpe.
The trailers also serve as seed locations for future growth, he said.
In addition, Wahlburgers has taken on the food-and-beverage operations of the Big Cypress Lodge, a hotel and retail flagship owned by Bass Pro Shops at the Pyramid in Memphis.
The somewhat bizarre glass pyramid overlooking the Mississippi River in downtown Memphis is home to a massive Bass Pro Shop, a 140-room hotel, and a high-end steakhouse at the top called The Lookout.
The Bass Pro Shop retail outlet and hotel in Memphis. | Photo courtesy of Bass Pro Shops.
A concept called Wahlburgers Wild is now open there amid the dining options. It’s a full-service Wahlburgers with an enhanced menu that includes offerings to reflect the outdoorsmen Bass Pro brand, like a bison burger, Sharpe said.
Wahlburgers will also operate the lobby bar, room service and banquets for the hotel, Sharpe said.
In addition, Wahlburger locations are scheduled to open in Bass Pro Shops opening in Irvine, California, and Sayreville, N.J. later this year.
And Wahlburgers is opening in more airports.
The brand has outlets in Boston’s Logan International Airport and Toronto Pearson International Airport, in partnership with SSP America. Most recently, the brand opened in Detroit Metropolitan Airport with Delaware North. And next month, the brand is opening in Sarasota-Bradenton International Airport.
Airports are another opportunity for the brand to flex as either a full-service or limited-service outlet, said Sharpe. At Logan, for example, the airport hosts both a full-service unit with bar and a counter service outlet. Both do “crazy numbers,” said Sharpe.
“There’s a defined flexibility in the brand,” he said. “What works is really what you are looking for.”
Sharpe said another deal is being finalized that will bring a full-service Wahlburgers to Monterrey, California.
The Las Vegas-based company also bought back the full-service Wahlburgers location at the Mall of America in Minneapolis from Hy-Vee. Of the 52 units, eight are company-owned, and the rest are licensed or franchised.
Wahlburgers, meanwhile, is flourishing, Sharpe said.
“It’s about knowing who you are [as a brand] and what works,” said Sharpe. “It’s a great brand. You have to pick the right real estate. You want the right traffic patterns. And you want to make sure you pick the right markets where it resonates well.
“That was one of the key things I identified when I came on board,” he said, adding, “It’s not only about identifying what works, but also to stay away from what doesn’t.”
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