McDonald's Serves Grocery Customers in Co-Branded Store

McDonald's may be coming soon to a grocery checkout near you. The QSR has joined forces with IGA and Laurel Grocery Co., a wholesale food distributor, to bring a co-branded supermarket/fast food store to Pennsylvania—the first of its kind for a grocery store.

The new store opened last week at Petrucci's Market IGA in Burgettstown, PA, which includes a full-service supermarket and independently-owned McDonald's restaurant. Store owners Jim and Tom Petrucci rebuilt the store after they lost their original supermarket to flooding from a 2004 tropical storm. The family received a license to join IGA with the Laurel Grocery Co.

"IGA, Laurel Grocery Co. and McDonald's share compatible thinking in that each recognize selling our products is simply a part of working to the greater good of community activism and development," said Dr. Thomas Haggai, chairman and CEO of IGA, in a statement.

McDonald's is no stranger to teaming with retailers. The Oak Brook, Il-based chain has teamed with convenience stores, gas stations and other retailers, including Wal-Mart. The initiative with IGA, however, is McDonald's first co-branding effort with a full-service supermarket.

"We essentially morphed our oil-based co-branding initiative into one that would fit the Petrucci's Hometown Proud IGA supermarket model," said Patrick Hoffman, McDonald's Pittsburgh region development manager, in a statement.

The partnership enhances visibility for both brands, said Jack Hubbs, VP sales and development for London, KY-based Laurel Grocery Co.

"We know restaurants [have] high frequency...and so do supermarkets," he said. "There can be a real strong synergy between the two that makes a power location. We're excited about the opportunity to offer to our retailers partnerships with McDonald's in future locations."

Officials from McDonald's would not say whether IGA is planning any additional co-branded stores with McDonald's. IGA officials could not be reached for comment.

Yet, already some Pennsylvania-area McDonald's owners have approached the company expressing interest in finding retailer partners for a similar effort, Hubbs said.

"This is a test, we're seeing people in Pennsylvania get excited about this," Hubbs said.

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