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ment and balance sheet without consideration for store-level prof“Eighteen percent of 7-Eleven its,” said NCASEF Chairman Jay stores in the U.S. are curSingh. “As a result franchisees are rently available for franchisleaving the system and replacements are hard to find.” ing. Since April 2018, the The NCASEF offered the number of available stores following points based on pubhas increased more than 57 licly available franchising data percent, from 999 to 1,578.” from SEI: • Eighteen percent of 7-Eleven stores in the U.S. are currently ment in the last 12 months and continavailable for franchising. ued robust interest from entrepreneurs • Since April 2018, the number of availlooking to franchise with this system.” able stores has increased more than 57 percent, from 999 to 1,578. • Since April 2018, stores currently owned by a franchisee and put up for sale (known as goodwill stores) have increased more than 95 percent in Califor7-Eleven parent company Seven & nia; 39 percent in New York; 314 percent i Holdings looks to have secured record in Illinois; 84 percent in Virginia and 60 operating profit for the six months endpercent in Washington State. ing August, reported Nikkei Asian Re• Completed sales of franchised stores view. The 1 percent growth in operating more than quadrupled from 2013 to 2018. profit to about 200 billion yen ($1.8 bil• Turnover of franchised stores due to lion) comes as a relief to the company terminations, non-renewals and abanand its investors donments doubled from 150 in 2013 to after the disastrous 314 in 2018. debut of its 7Pay The National Coalition stated it mobile payment believes a change in corporate leadplatform in July, ership, starting at the top, will help which was quickly make 7-Eleven stores more aphacked and pealing to new and existing franforced the group chisees. In a statement to CSP to discontinue Daily News, SEI responded, “During the the service a month after its launch. past 10 years, the 7-Eleven brand has Having to pay out higher wages to generated over $15 billion in earnings secure staff amid a labor shortage, the for franchisees across the country. In group trimmed down its cost structure, fact, average franchisee gross income is particularly in advertisements. Any money left over was spent refurbishing at an all-time high. The opportunity existing stores that were experiencing with the brand is tremendous, as atslower growth. The cost cutting looks to tested by the 4,700 franchisees that signed a new 15-year franchise agreecontinued on page 16
Seven & I Reports Record Earnings
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7-Eleven Canada recently launched its Beyond Meat Pizza, packed with 100 percent plant-based Italian Sausage Crumbles. The Beyond Sausage and Roasted Veggie Pizza is now available in select Urban Toronto 7Eleven locations. • Walmart will stop selling e-cigarettes in its U.S. stores, citing “growing federal, state and local regulatory complexity and uncertainty” around the products, reported CNBC. • In an effort to remain competitive and attract top talent, Sheetz plans to invest $16.8 million to raise wages for its 20,000-plus person workforce in locations across six states, reported PhillyVoice.com. • Seven-Eleven Japan has teamed with Rakuten, Inc. to introduce the Rakuten Pay smartphone app payment service to 7-Eleven convenience stores around Japan, reported Japan Today. Rakuten Pay allows registered members to easily make payments with credit cards, etc. registered to their Rakuten account by simply by having the barcode displayed on the app scanned by a staff member at the cash register. • Kellogg and Hormel will soon launch their own plant-based meat product lines to compete with Beyond Meat and Impossible Foods, reported CNBC. Kellogg’s product line is called Incogmeato and will be produced by its Morningstar Farms brand, while Hormel’s new brand will be called Happy Little Plants, and will be housed under its Cultivated Foods umbrella. • Amazon is in talks to bring the cashierless technology that runs its Go stores to other retailers like airport shops and movie theaters, reported CNBC. The move would help Amazon diversify beyond online retail without relying only on building its own stores, according to the article. • Pennsylvania convenience chain Rutter’s recently became the first in the state continued on page 18