Going Back To Basics In 7-Eleven Stores

By Teeto Shirajee, NCASEF Vice Chair

In an era of online shopping and digitized experiences, brick-and-mortar retailers are increasingly challenged to stand out and adapt to changing consumer behaviors. However, within the complex landscape, going back to basics remains a winning strategy in retail. By emphasizing fundamental principles such as customer service, cleanliness, quality, value, and a distinct product assortment, our 7-Eleven stores can create a compelling and memorable in-store experience that surpasses what e-commerce platforms can offer.

At the heart of every successful retail business lies exceptional customer service. Customers who enter a physical store seek personalized attention, guidance, and assistance. By developing a culture of outstanding customer service, 7-Eleven stores can create positive, lasting impressions and build meaningful relationships with their customers. Knowledgeable and attentive staff who actively listen to customer needs, offer product recommendations, and provide prompt and friendly assistance play a pivotal role in creating a memorable shopping experience.

Cleanliness is a fundamental aspect of the in-store experience that significantly impacts customers’ perceptions and overall satisfaction. A clean and well-maintained 7-Eleven store instills confidence in customers, and creates a pleasant and welcoming atmosphere. Attention to detail—such as organized shelves, spotless floors, and clean restrooms—shows that we care about the customer experience. Regular cleaning schedules and the use of eco-friendly cleaning products can further enhance the appeal of the store.

In pursuing a successful retail business, delivering high-quality products is paramount. Customers are increasingly conscious of the value and durability of their purchases. By curating a selection of products known for their quality and reliability, retailers can build trust with customers. Collaborating with our high-quality private brands and conducting thorough quality checks on incoming inventory delivery helps maintain product standards. Investing in training programs to educate staff about product features, benefits, and usage can also instill confidence in customers’ buying decisions.

One primary factor that draws customers to retail stores is the perceived value of their purchase. To remain competitive, we must provide value-driven offerings, like accepting all the funded promotional offers by the vendors and SEI. This includes a balance between competitive pricing, promotions, and exclusive deals. Demonstrating value goes beyond price alone—it encompasses factors like the uniqueness of a product and additional services. By consistently delivering value, we can generate customer loyalty and distinguish ourselves from competitors.

A well-curated assortment of products tailored to customers’ preferences is crucial to a successful 7-Eleven store. We should deeply understand our target audience and offer a wide range of products that cater to their needs and desires. Striking the right balance between popular items, niche products, and new items from Info-Dispatch ensures that customers have various choices. Regularly reviewing and updating the product assortment based on market trends and customer feedback can help our stores stay relevant and meet evolving consumer demands.

In the rapidly changing retail landscape, embracing basic yet essential principles is crucial for success. By prioritizing customer service, cleanliness, quality, value, and the assortment of products, 7-Eleven stores can create a superior in-store experience beyond what online platforms can provide. These core principles build trust and relationships, and differentiate physical retail establishments in an increasingly digital world. By focusing on the fundamental elements customers value most, we can position ourselves as destinations of choice, creating a loyal customer base and driving sustainable growth in our stores.

 

A Call To Action

Sukhi Sandhu, NCASEF Chairman

In the current economic climate, it’s more urgent than ever that we get involved in legislative affairs that can significantly impact our businesses’ sustainability and growth. Engaging with local, state, and national legislative processes is a strategic imperative that can protect the profitability of our stores and help us thrive during regulatory changes and economic challenges.

One pressing issue many of us face is the proposed bans on flavored tobacco and other age-restricted products. These bans, while designed to improve public health and prevent sales to minors, can severely affect our revenue streams. Flavored tobacco products, including menthol cigarettes, make up a significant portion of our sales. There are many other ways to protect the public’s health and deter sales of age-restricted items to minors that also keep small businesses and the economy going, as well as provide revenue to municipalities via taxes and license and permit fees. 7-Eleven already utilizes Electronic Age and Identity Verification on its branded websites and is working to launch it on the 7Rewards app. Working with SEI we can deploy the latest age verification technology at the store level. We can also train our employees to follow the latest age verification requirements, and as far as protecting the public’s well-being, educational programs can be developed by health organizations.

Interacting with legislators allows us to voice our concerns and advocate for balanced laws and regulations that protect the public without devastating our bottom lines. Participating in public hearings and joining forces with convenience store groups can ensure our perspectives are heard and considered in the decision-making process.

Retail crime—including shoplifting, organized retail theft, and smash-and-grab robberies—is another growing concern that threatens our profits, as well as the safety of our employees and customers. By actively participating in local crime prevention programs and supporting stronger penalties and better enforcement, we can help create safer environments for our stores. Building relationships with local police departments and law enforcement officials—like meeting often with the police chief or district attorney, and inviting police officers to visit your store—and supporting community policing initiatives can build mutual trust and cooperation, making our stores less attractive targets for criminals. Additionally, joining local business associations can amplify our collective voice, pushing for more resources and attention to combat retail crime effectively.

Finding unique items and categories that generate incremental income to offset our increasing operational costs is vital for our growth, and one such opportunity lies in the legalization and regulation of skill games. These games, which require a degree of skill rather than mere chance, can attract customers and provide an additional income source. However, the legality of skill games varies widely across states. Promoting clear and fair legislation at the state level can ensure that these games become a viable option for our stores. Working with state legislators, providing testimony on the economic benefits, and collaborating with other business owners can help push favorable legislation, opening new avenues for revenue not only for our stores, but also for cities and local municipalities through taxing and regulation.

Joining regional and national trade organizations like the National Association of Convenience Stores (NACS), the California Fuels and Convenience Alliance, the New York Association of Convenience Stores, or other small business associations can significantly enhance our ability to influence local, state and federal laws that affect us. Attending the NACS Day on the Hill event, held annually in Washington, D.C., allows us to meet directly with members of Congress and other policymakers. This face-to-face interaction is crucial for discussing critical issues such as credit card swipe fees, labor laws, and other regulations impacting our store operations. By participating in legislative advocacy, we can share our perspectives and campaign for balanced policies that consider the economic realities of running a small business. Labor laws directly affect how we manage our workforce. Through NACS and other trade organizations, we can work to influence these laws in ways that support sustainable business practices.

Understanding the legislative issues that impact our businesses is the first step towards effective advocacy. Regularly reviewing updates from NACS and other industry associations helps us stay informed and prepared. Building relationships with local, state, and federal representatives by inviting them to visit our stores and discussing our challenges and potential solutions can make our voices more influential. Participating in NACS Day on the Hill and other advocacy events provides valuable opportunities to connect with other convenience storeowners and promote our shared interests. Joining local business associations helps us stay informed about local legislative issues and provides a collective voice in promoting favorable policies. Hosting community engagement events in our stores, such as meet-and-greet events with local officials, can gain us support.

For example, on a local level, working with city councils on ordinances that affect store operations, such as license fees and transfer restrictions, can ensure that our interests are represented. On the state level, engaging in discussions about state-mandated restrictions on certain product sales, like alcohol or tobacco, can help mitigate potential negative impacts on our business. Federally, issues like changes to labor rules require our collective voice to ensure that legislation is balanced and considers the needs of small business owners. By having a seat at the table, we can educate lawmakers on how certain laws and regulations affect our businesses, and how much we contribute to the local economy.

Together, we can influence the legislative landscape to create a more favorable environment for our businesses. Involvement in legislative affairs is about protecting our interests and ensuring the growth of our 7-Eleven stores. Let’s take this call to action seriously—engage, advocate, and lead by example. Our efforts today will shape the business landscape of tomorrow.

 

 

Small Change, Big Impact: How Your Business Can Help Heal Local Children

Nick Bhullar, NCASEF Executive Vice Chair

As a small business owner, especially as a franchisee of a well-known brand like 7-Eleven, our role in the community extends beyond providing convenient services and products. We are a pillar of support and a beacon of hope for many in our neighborhoods. And we have proven that over and over by participating in many fundraisers and other community events over the years.

At the end of 2023, our stores participated in the fundraising campaign benefiting Children’s Miracle Network Hospitals. Thanks to the unwavering support of franchisees, customers, and associates, we collectively raised over $18 million for CMN Hospitals in 2023. This remarkable achievement directly benefited 107 member hospitals across the communities we serve, providing critical medical care and support to countless children. Your dedication and generosity made a tangible difference, ensuring that local children’s hospitals have the necessary resources to offer life-saving treatments and improve the quality of life for young patients.

As we celebrate the success of our past efforts, I would like to request our community to once again participate in the upcoming round of CMN Hospitals fundraising. I call upon the entire 7-Eleven community to step up and participate in this noble cause. The upcoming round of the initiative presents another opportunity for us to come together and make a significant impact on the health and well-being of children in our local regions.

As we all know, children often form a significant portion of the customer base at 7-Eleven locations. Our stores are frequented by families, and many children enjoy visiting for snacks, drinks, and other kid-friendly products. When parents and community members view 7-Eleven as a partner in supporting children’s health, they are more likely to choose your store over competitors. The sense of a shared mission enhances customer relationships and reinforces the idea that 7-Eleven is more than just a convenience store—it’s a community ally dedicated to making a difference in the lives of local children.

One impactful way to make a significant difference is by participating in money round-up programs to help children in your local region receive critical medical attention. A money round-up program is a simple yet powerful fundraising initiative where customers are asked to round up their total purchase amount to the nearest dollar. The difference is then donated to a specific cause. In this case, the proceeds would go towards CMN Hospitals for children in your local community who are in need of surgeries or other medical interventions. By participating in money raising programs focused on children’s health and wellness, we can align our brand with the values that resonate deeply with their community.

Now, I know we are all thinking, “It’s easier said than done.” So, we have gathered some helpful information from participating franchisees that have had huge success in achieving customer and employee participation. The first and most important step is to train your sales associates to explain the program to customers. They should be able to clearly articulate the purpose of the program and how it helps children in the local area. Role-playing scenarios can help associates practice and become more comfortable with these conversations. It would also help if you provided a simple, effective script for your sales associates to use. For example: “Would you like to round up your total to the nearest dollar to help local children receive medical care? Your small change can make a big difference!”

You can also help your customers understand your mission and objective behind the cause by displaying informative flyers, posters and success stories of children who have been helped by the program. Personal stories resonate with people and can motivate them to contribute.

It is also crucial to set goals for your employees and to celebrate them once those goals have been reached. To further motivate and engage your sales associates, please consider implementing a reward program based on the amount of money raised through the round-up program. Setting achievable milestones and offering incentives—such as gift cards, extra paid time off, or recognition awards—can drive enthusiasm and commitment.

For instance, you could set a goal of $500 raised within a month and reward the team with a catered lunch or a special acknowledgment ceremony. Recognizing and rewarding your employees will boost morale and establish a team-oriented environment where everyone is committed to making a difference in the community. This added incentive will encourage your staff to be proactive in promoting the round-up program, ultimately leading to greater success and a more impactful contribution to children’s medical needs.

By adopting these strategies, 7-Eleven teams can carve out a unique niche in the convenience store market. Unlike other brands that may only focus on the transactional aspect of their business, 7-Eleven can be seen as a community-centric, socially responsible brand. This reputation not only attracts more customers, it also generates long-term loyalty and trust. And by asking customers to round up their purchases to the nearest dollar, we can continue to support our local children’s hospitals and provide essential medical attention to those in need.

 Let’s unite once more in this mission and show that the 7-Eleven family is committed to building healthier, happier communities. Together, we can make a difference, one round-up at a time.

 

 

Change Is The Only Constant

By Eric H. Karp, Esq., General Counsel To NCASEF

The Greek philosopher Heraclitus is credited with the idea that the only constant in life is change. More recently and closer to home, Benjamin Franklin is quoted as saying, “When you’re finished changing, you’re finished.” And change has been a major theme in the 7-Eleven franchise system, especially over the last 10 years.

 7-Eleven had less than 8,000 stores in the United States and 82 percent of them were operated by franchisees in 2014. More than 11 percent of its revenue was derived from its share of the gross profit split with franchisees. The company’s net income was approximately $335 million. Gross margin derived from gasoline sales was approximately $833 million and gasoline gross profit was 6.3 percent. SEI was primarily a franchised convenience store company.

Fast forward to 2023, we find a system transformed. By the end of last year, there were more than 12,500 stores in the United States, but only 55 percent of them were franchised. Nearly 63 percent of all locations have gasoline and 75 percent of the company’s revenue is derived from fuel and about 5 percent from its gross profit split with franchised stores. Gross profit from gasoline was approximately 11.9 percent. In 2023, SEI gasoline operations generated more than $5.3 billion in gross margin. SEI operating income in 2023 was $2.9 billion. Currently, SEI is primarily a company owned gasoline retailer.

In addition, between 2014 and 2023 franchisees experienced the rollout of the so-called new franchise agreement, which transferred many expenses and responsibilities from SEI to its franchisees.

I outline these changes because of the Strategy Committee Recommendations report from the outside (non-management) Directors of Seven & I Holdings Co., Ltd., the parent company of SEI. The report was issued on April 10, 2024. The committee spent many months developing this plan and their work included extensive conversations with significant many shareholders.

In its announcement of the recommendations, the company stated that the committee had provided input to management in advance of the final recommendations, some of which had already been implemented. The company went on to say that We will create a timeline for actioning those items that are being announced today and have started working towards implementation.

From these conversations emerged the common theme that the company needs to accelerate growth in order to realize its global potential, indicating that the current price of its publicly held shares is not a reflection of that potential.

Four primary recommendations to the overall Board emerged:

  1. Growth Through Acquisitions. The committee’s top line recommendation is to Accelerate growth and improve profitability and capital efficiency in the North American CVS market with large growth potential. They indicate that there is an opportunity to capitalize on a fragmented convenience store market with a more assertive and flexible approach to financing. The company’s response referred to a more agile and flexible financial discipline, (target Net Debt/EBITDA range of 1.8-2.5). They report to shareholders that the North American CVS business will continue to be a key driver in growth of the overall company. The committee compliments SEI for its ability to integrate acquired assets, and accelerate their sales and profitability, most recently with Speedway. The committee does not specify any particular targets for acquisition, nor does it indicate whether they would be operated under the 7-Eleven banner or whether they would be franchised.
  2. Eventual Transition from Gasoline. Once again, the committee voiced its concern over the eventual transition away from gasoline for personal transportation, although both the form of that transition and the time frame remains unclear. But they urge management to develop an explicit plan to address this transition and its potential impact on customer traffic, sales and profit. The importance of such a plan is obvious, given the heavy reliance of the company on gasoline as a source of revenue and profit. The company’s response to the recommendations did not mention this item.
  3. Food Production Capability. The committee’s view is that the 7-Eleven system can differentiate itself from competitors by expanding the variety and quality of its food offerings. The Japanese store revenue share for fresh food and hot food is 42 percent, nearly 2 ½ times that of the United States stores. It urges the Board to make investments in food production capability, in-store and through commissaries, in order to accelerate this opportunity. The company’s response also did not include this item.
  4. Unified Leadership. The committee recommends that the superstore division of the parent company be spun out into a separate public company, so that the resources can be concentrated on the convenience store segment, which is now 82 percent of its business. The company’s response on this point stated: the company is considering an IPO of the SST business targeting to list as soon as reasonably practicable as one workable option... They also want to create a globally integrated convenience store management structure, including Japan and North America, under a unified leadership. This appears to be an effort to increase the pace of the transition of North American stores to a product mix closer to that of the Japanese stores. Left unsaid in the report is how this integrated management structure would be created, who would lead it, and where it would be based.

One indicator of the company’s embrace of these recommendations was the announcement on April 18, 2024 that Stephen Hayes Dacus, the Chair of the Strategy Committee will be appointed Chairman of the Board of the company upon approval of the Board following the shareholders meeting on May 28, 2024. In order to understand developments that occurred in the past and may happen in the future directly affecting 7-Eleven stores in the United States, we continue to closely monitor, evaluate and report on developments and information from the parent company of your franchisor, as well as its marketplace competitors and publicly held peers.

Neither space nor time permits speculation on how these changes could affect franchisees in the United States. But I can assure you that I will be discussing these and other pressing matters at my presentation at the NCASEF Convention and Trade Show at the Gaylord Palms Resort and Convention Center in Kissimmee, FL July 17-19, 2024. I hope to see each of you there.

 

 

 

Charting A Path Forward

By Sukhi Sandhu, NCASEF Chairman

In these turbulent times, being part of the retail industry feels like navigating through a storm. As a 7-Eleven store owner, I know firsthand the challenges our businesses are facing. But if there’s anything I know about franchisees and the 7-Eleven brand, is that we are resilient, and I am confident we can overcome these present hurdles and come out stronger through collaboration and adaptability.

The economic landscape is shifting, with factors like EBT/SNAP benefits adjustments, rising inflation, and soaring grocery prices impacting our customers. Households have less disposable income, leading to tighter budgets and heightened challenges for us to attract and retain customers. We’re also experiencing shifts in legislation and regulations that add more layers of complexity to our operations—like flavored tobacco bans—and market prevailing wages and insurance rates that are increasing so rapidly it’s making it difficult for us to adjust or offset our operating expenses.

To help us make it through this period, SEI’s merchandising team is working with our vendor partners to introduce more “First, Best, Only” (FBO) items and products exclusive to 7-Eleven, aimed at driving foot traffic and distinguishing our stores in the c-store sector. They are also working with vendors on better costs and promotions that are funded (in some cases fully), as well as to ensure the supply chain is running smoothly so our shelves are always fully stocked with the items our customers crave.

Collaboration with SEI and our vendors is pivotal in this endeavor. Together, we’re responding to the economic changes, creating a dynamic product mix offered at the right price that will bring more customers through our doors. These partnerships are vital, allowing us to leverage collective insights and resources to introduce products and promotions that set us apart.

But we as franchisees also have a tool at our disposal that is particularly indispensable at moments like these—the ability to adapt and cater directly to our customers’ needs as independent store owners. As franchisees, we possess the autonomy to make decisions that can significantly impact our stores’ success. Our franchise agreement allows us to order 15 percent outside of the Recommended Vendor Purchase Requirement (RVPR). We can use that to help tailor our stores to our customers’ tastes. We can order from local vendors, try new products as NRIs and SSIs, and adjust the retail pricing on some products to increase foot traffic.

This autonomy allows us to make choices that may differ with the broader corporate recommended strategies, but allows us to exercise Retailer Initiative and customize our product mix to the unique preferences and requirements of our local communities. From introducing regional specialties to adopting new product lines that resonate with our customers, our role as independent operators empowers us to drive sales and attract new shoppers by making decisions that sustain and enrich our stores and the communities we serve.

As franchisees, we’re curators of a retail experience that’s as diverse and dynamic as the customers walking through our doors. By staying attuned to their changing needs and preferences, we ensure our stores remain relevant, welcoming, and vibrant. This approach is not just about survival—it’s about thriving and turning challenges into opportunities for growth and connection.

The recent 7-Eleven Experience event stands as a testament to our collective strength and commitment. Seeing record-breaking franchisee attendance was an impressive and powerful demonstration of our unity and dedication to our brand, and each other. Platforms like the 7EE and our NCASEF convention underscore the importance of collaboration, of networking and sharing ideas, and learning from one another to navigate the complexities of our industry together. They also allow us to see and order the latest hot products from our vendor community that could have huge impacts on our sales and profitability.

As we continue to navigate these uncertain times, let us remember the power we hold as franchisees. Our ability to adapt, to customize our stores to meet the evolving needs of our customers, is our greatest asset. It’s through this flexibility and executing at the higher level innovations like FBOs and exclusive products that we’ll not only weather the current storm, but emerge stronger, more connected, and more resilient.

Before I end this column, I would like to extend my heartfelt thanks to Joe Rossi, our former NCASEF Executive Vice Chair, and Romy Singh, our former Treasurer, for their unwavering dedication and service to our franchisee community. Their contributions have laid a strong foundation for our collective success, guiding us through both challenges and triumphs. They were also pivotal in implementing the new collaborative vision of our organization.

I’m thrilled to announce the appointment of Khalid Asad (Vice President of the Kansas City/St. Louis FOA) and Michelle Niccoli (Vice President of the Rocky Mountain FOA) as interim Vice Chairs of NCASEF. Their diverse backgrounds and perspectives, as well as their experience as franchisee leaders, are invaluable assets to our leadership team and I’m looking forward to working with them.

I want to reiterate my commitment to serving you all with every ounce of energy I have. As we look to the future, let’s continue to embrace our independence and nurture a culture of collaboration between all 7-Eleven stakeholders.

 

 

Empowering Our Future Through The Ballot Box

Nick Bhullar, NCASEF Executive Vice Chair

Our 7-Eleven business isn’t only about selling products, it’s about being a vital part of the community and a source of convenience in our customers’ busy lives. But as we navigate the waters of commerce, we are increasingly finding ourselves at the mercy of decisions made far from our well-lit aisles and friendly counters. The truth is, more and more our businesses are being influenced by the people that craft our laws. This is why I ask each one of you to vote with the future of our stores in mind this election season.

In a retail landscape dotted with giants, small businesses like ours need advocates in government. From the corridors of local municipalities to the halls of Congress, decisions are being made that directly impact our operations, our profitability, and our ability to serve our communities. We need lawmakers who understand that decisions like credit card swipe fees, menthol bans, raising tobacco license fees, and swift increases in the minimum hourly wage are more than lines in a legislative document, they are currents that can either sweep our businesses to prosperous shores or sink us into troubled waters.

In regard to credit card swipe fees, every time a customer swipes their card, a portion of our hard-earned revenue disappears into a fee. We need representatives who see the value in regulating these fees, ensuring they are fair and do not disproportionately impact small businesses like ours. The balance here is delicate—we are not against the convenience of card payments, but against the unfair burden of excessive fees.

The proposed bans on menthol and other tobacco products are another battleground. While public health is important, abrupt bans without considering the impact on businesses like ours are not the solution. We need legislators who will work with us to find a balance between public health concerns and the economic realities of stores that rely on these sales.

Rising tobacco license fees are a similar concern. Increases in these fees must be balanced with the realities of our operating costs. They should not be punitive, but reflective of a cooperative approach between government and businesses.

Wage policies, particularly around raising the minimum hourly wage, are a critical concern. While we all support fair wages, a sudden and steep increase can be a shock to the system of small businesses. We need lawmakers who understand the need for a phased approach, giving businesses like ours time to adapt without compromising our bottom lines.

Lastly, the rising tide of retail crime is a concern that keeps many of us awake at night. We need strong support from law enforcement and the legal system to protect our employees, our customers, and our investments. Legislators who prioritize effective measures against retail crime will have a direct positive impact on our businesses and communities.

As we stand on the eve of these elections, I urge you to think of these issues as you cast your vote. It’s about choosing representatives who understand the heartbeat of small businesses, who recognize the challenges we face, and who are willing to work alongside us for solutions that benefit our stores and our communities as a whole.

 Together, we can make a difference. Let’s go to the polls and vote for the change we want to see. Let’s vote for the future of our businesses and our communities. Let’s vote for a brighter, more prosperous tomorrow.

 

What We Can Do To Increase Sales In Our 7-Eleven Stores

By Teeto Shirajee, NCASEF Vice Chair

In an era where millennials and Gen Z are shaping market trends and redefining consumer expectations, the imperative to attract these demographics is clear. This endeavor, however, demands more than individual effort. It requires a united front among all 7-Eleven stakeholders—franchisees, SEI, and our valued vendors—to innovate and adapt to the evolving retail landscape.

A Shared Vision for Innovation
To begin, we need a shared vision. Millennials and Gen Z are the epitome of the digital age—tech-savvy, socially conscious, and value-driven. To captivate these audiences, our collective efforts must focus on innovation, both in how we present our stores, and in the products and services we offer. This means embracing digital marketing strategies, leveraging social media platforms to engage in meaningful conversations, and utilizing data analytics to understand and anticipate consumer preferences. Through collaborative planning sessions, SEI, franchisees, and vendors can outline a cohesive digital strategy that amplifies our brand presence and resonates with younger consumers.

Tailoring Products and Experiences
The essence of our appeal lies in our ability to offer tailored experiences and products that resonate with the values and lifestyles of millennials and Gen Z. This is where the relationship between franchisees, SEI, and vendors becomes pivotal. Vendors, with their insight into product trends and innovations, can provide franchisees with a diverse range of products, from eco-friendly goods to tech gadgets, catering to the interests and values of younger consumers. SEI, on its part, can facilitate this by ensuring that the logistics and supply chains are optimized for a smooth introduction of these products into our stores. Together, we can create a curated shopping experience that meets and exceeds the expectations of these demographics.

Emphasizing Sustainability and Social Responsibility
Environmental sustainability and social responsibility are at the heart of millennials and Gen Z’s consumer behavior. By working together, franchisees, SEI, and vendors can amplify our commitment to these causes. This can be achieved through initiatives like adopting sustainable packaging, minimizing waste, and supporting community projects. Vendors can play a significant role by offering products that align with these values, while SEI can spearhead campaigns that highlight our collective efforts in sustainability and social responsibility. As franchisees, we can bring these initiatives to life in our local communities, generating a brand image that resonates with the conscientious nature of these generations.

Leveraging Technology for a Seamless Experience
Technology is the key in attracting and retaining millennial and Gen Z customers. A collaborative effort can revolutionize the in-store experience through the adoption of cutting-edge technologies like augmented reality (AR) for product information, self-checkout kiosks, and mobile payment solutions. Vendors can introduce innovative tech products and services, while SEI can ensure the technological infrastructure of our stores supports these advancements. As franchisees, we can provide valuable feedback from the ground, helping to refine and adapt these technologies to meet consumer expectations.

Creating Retail Experiences
Millennials and Gen Z seek experiences that are memorable and shareworthy. By pooling our resources and creativity, franchisees, SEI, and vendors can transform 7-Eleven stores into hubs of experience—be it through pop-up events, exclusive launches, or community-driven initiatives. These efforts will attract younger consumers and create a sense of community and belonging that can encourage loyalty and repeat visits.

The path to attracting millennials and Gen Z requires a combined effort from franchisees, SEI, and vendors. It demands a shift in our mindset, where innovation, sustainability, technology, and experiential retail become the pillars of our strategy. I believe in the power of this collaboration to not only attract but also engage and retain the younger generations, securing the future of our 7-Eleven brand in the dynamic retail landscape of today and tomorrow.

 

A Farewell Note

By Joe Rossi, NCASEF Board Member

Serving as the Executive Vice Chairman of the National Coalition of Associations of 7-Eleven Franchisees was never a role I envisioned holding for the long haul. My commitment from the outset was to serve a single term—a fleeting, yet pivotal, two years. In this compact span of time, we’ve journeyed together through many challenges and triumphs, each step forging a stronger, more unified path for our organization and the franchisees it represents.

I stepped into this role with a singular focus: to create a stronger, more collaborative path for our franchisees and the organization. Looking back, I’m proud to say we’ve accomplished much, turning aspirations into tangible realities.

One of the crowning achievements of our tenure has been establishing a robust line of communication with SEI and our valued vendors. Communication—clear, open, and constructive—is the cornerstone of any successful relationship. We’ve broken down barriers and built bridges, ensuring that the voices of our franchisees are not just heard, but listened to and acted upon. This dialogue has been instrumental in driving change and creating a spirit of cooperation.

This newfound communication has also served as a beacon of resolution for various store-related challenges. By giving us a voice in our dealings with vendors and SEI, we’ve seen a transformative shift in how business is conducted. Issues that once seemed insurmountable are now being addressed with a “Team 7-Eleven” mentality, leading to solutions that benefit all parties involved. This open channel of communication is a testament to what can be achieved when we listen, engage, and work together towards common goals.

Our ties with SEI and vendors have blossomed into a partnership based on mutual respect and understanding. These relationships are vital, not just for the here and now, but as a foundation for the future. We’ve paved a road that others can travel on, a road lined with the prospects of growth, innovation, and shared success.

As I pass the baton to the new Executive Vice Chair, Mr. Nick Bhuller, I do so with a sense of fulfillment and hope. The journey doesn’t end here; it merely takes a new turn. I won’t be at the helm, but I’ll be there, among you, as a Board member, as a colleague, and as a friend. The seeds we’ve sown together need nurturing to blossom, and I have no doubt that the NCASEF Board and all our franchisees will continue this good work.

Let’s keep the dialogue flowing, the partnerships thriving, and our collective vision alive. As I step into a new role, I do so with the confidence that NCASEF is in capable hands. Together, we’ve laid a solid foundation. Now, it’s up to all of us to keep building upon it, to reach new heights, and explore new horizons.

I extend my deepest gratitude to each one of you. It’s been an honor and a privilege to serve alongside Chairman Sukhi Sandhu, the officers, and the NCASEF Board. Here’s to continued success, growth, and collaboration.

 

 

Keys To Managing Multiple 7-Eleven Units Efficiently

By Teeto Shirajee, NCASEF Vice Chairman

In the bustling world of convenience store management, particularly within the framework of 7-Eleven franchises, steering the ship of multiple stores demands not only traditional managerial expertise, but also a refined understanding of multi-unit operations. As we dive into the strategies for managing multiple 7-Eleven stores, it’s crucial to recognize that the success of each store hinges on a harmonized approach, blending individual store needs with overall brand standards and objectives. Here are some tailored approaches:

  1. Set Clear Goals Across All Units: Establishing and communicating clear objectives across your stores ensures a unified direction. This alignment is crucial in a multi-unit environment, where each team should be aware of the common goals.
  2. Prioritize Tasks Across Locations: Understanding which tasks are most critical in each store and allocating resources accordingly is key. This might mean focusing on high-traffic locations during peak hours or ensuring inventory efficiency in stores with higher sales volumes.
  3. Delegate Responsibly: Assign responsibilities based on individual strengths and the specific needs of each store. Effective delegation is critical in a multi-store scenario, allowing you to focus on overarching strategies and decision-making.
  4. Master the Art of Communication: Effective communication is the backbone of managing multiple locations. Regular check-ins, clear directives, and a culture of openness keep everyone on the same page and foster a sense of team unity.
  5. Lead by Example and Establish a Benchmark: Your actions set the tone. Demonstrating punctuality, organization, and professionalism across all interactions instills a standard for your teams to emulate.
  6. Empower Your Teams: Trust your staff to make decisions and manage day-to-day operations. This empowerment not only boosts morale, but also ensures each unit operates smoothly even in your absence.
  7. Embrace Continuous Learning and Adaptability: Stay abreast of industry trends and be open to feedback. The convenience store landscape is always evolving, and so should your management strategies.
  8. Effective Time Management: Implement time management strategies that cater to the unique needs of managing multiple units. Balancing immediate needs with long-term strategies is vital.
  9. Navigate Conflicts and Challenges with Diplomacy: Addressing conflicts and challenges swiftly and fairly is especially important in a multi-unit environment, where issues in one store can have ripple effects on others.
  10. Prioritize Self-Care: Managing multiple stores is demanding. Prioritizing your own well-being is essential to maintain the energy and focus needed for this challenging role.

Managing multiple 7-Eleven stores is an intricate dance of balancing individual store needs with a collective vision. It’s a journey of continuous learning, adaptation, and commitment to excellence. Remember, in the world of multi-unit management, the whole is indeed greater than the sum of its parts.

 

Our Journey So Far

By Sukhi Sandhu, NCASEF Chairman

Over the past two years, leading the National Coalition of Associations of 7-Eleven Franchisees (NCASEF) as its chairman has been an enlightening and transformative experience. When I first stepped into the role of chairman, I was greeted by an organization in need of significant change. My focus was clear: to steer NCASEF away from the political arena it had inadvertently entered and towards a new mission: working with all store’s and NCASEF’s stakeholders to improve the system.

Our first major undertaking was to overhaul our operational framework. We restructured how meetings are conducted—creating a more effective and efficient environment—and transformed the very culture of NCASEF. We moved away from a politically charged atmosphere to one where business discussions are center stage. System issues and concerns are now addressed head-on, and we opened constructive dialogues with our franchisor so we could work together to enhance our brand.

Our interaction with vendors saw a significant shift, as well. We expanded our Affiliate Program membership, embracing companies big and small, and recognized the unique opportunities our 7-Eleven stores could leverage. This expansion was both in numbers and in the quality of relationships we built. Our focus was to create a symbiotic environment where vendors, franchise leaders, and SEI could network and discuss business, cultivating a sense of community and mutual growth.

The increase in engagement wasn’t confined to the national level—local FOAs experienced a newfound vibrancy, as well. Our approach was twofold: firstly, to support the local FOAs more actively than in previous years, and secondly, to ensure our national initiatives resonated at the store level. This effort was evident over the last two years in local FOA trade shows and the national convention, which saw record attendance and participation from both franchisees and vendors. It was a clear indication of the renewed trust and enthusiasm within our brand.

Financially and operationally, we made strides in addressing significant challenges. One of our notable achievements was the resolution of the AR Gap. This issue had been a thorn in the side of our franchisees, distributors, and 7-Eleven corporate, complicating financial management and operational efficiency. Through collaborative efforts and open dialogue with SEI the AR Gap was resolved and Store Check-In Simplification was deployed, thus simplifying the financial aspects of running a 7-Eleven store, and providing peace of mind and stability to our franchisees.

Another significant achievement was working with SEI to create a captive insurance program, tailored specifically for our franchisees. In an industry where liability insurance is a significant concern, especially now with many insurance companies opting not to continue BOP insurance for c-store owners, this initiative offers a sustainable and beneficial alternative to conventional insurance options. Our captive insurance program, called National Captive Insurance Solutions (NCIS), is owned by franchisees and administered by insurance firm Marsh. Its purpose is to provide coverage and value for our stores, and not to make a profit. It’s also a statement of NCASEF’s commitment to the welfare and stability of our franchise community.

Understanding the challenges of employee acquisition and retention in the retail sector, we also introduced perks that franchisees can offer to attract new employees and retain current staff. Benefits like comprehensive employee health insurance and special mobile phone service prices via a partnership with T-Mobile has helped to alleviate labor issues for many franchisees, and with the help of SEI we introduced the Paradox talent recruitment platform at a very reasonable price.

Our relationship with SEI underwent a remarkable transformation during my tenure. We focused on building a partnership based on open dialogue and mutual respect. This was not about one party asserting dominance over the other, it was about finding common ground and working towards shared goals. By improving these relationships, we managed to eliminate the previous discomfort and hesitancy surrounding joint initiatives, leading to successful outcomes.

A hallmark of my tenure as chairman has been the establishment of NCASEF committees, a significant accomplishment that has fundamentally reshaped our organization’s approach to problem-solving and strategic planning. These committees, composed of dedicated and knowledgeable Board members, have been instrumental in identifying and addressing critical issues within our system. They function as think tanks, bringing together diverse perspectives and expertise to tackle everything from operational challenges to vendor relations. The success of these committees underscores our commitment to collaborative and inclusive leadership, setting a new standard for how we operate and advance as an organization.

In addition, our focus on retail initiatives has been unwavering. We’ve always been on the lookout for the “next big product,” akin to the success stories of Red Bull and Monster, which started as Non-Recommended Items (NRI) in our stores and serve as perfect examples of retailer initiatives. This mindset has been fundamental in keeping our brand dynamic and ahead of market trends.

Among the other pivotal changes over the last two years was the emphasis on encouraging franchisee participation in key SEI events and committees. For instance, the 7-Eleven Experience (7EE). Recognizing the immense value in this event, we actively encouraged our franchisees to attend. Our view is that the 7EE is not merely a corporate event, but a platform for learning, networking, and gaining insights into the latest 7-Eleven trends and practices. By promoting a greater sense of involvement and ownership, we saw record attendance from the franchise community at last year’s event.

Moreover, we placed significant emphasis on the involvement of franchisee leaders in SEI-led committees, such as the National Business Leadership Council (NBLC). This involvement is crucial as it provides a voice for our franchisees in decision-making processes and allows for a more collaborative approach to addressing challenges and opportunities in our business. By participating in these committees, our leaders could directly contribute to and influence key business strategies, ensuring that the interests of our franchisees are well-represented and aligned with the broader objectives of 7-Eleven. Our FOA leaders are equally encouraged to participate in any of the numerous NCASEF committees that engage regularly with SEI directors and managers to resolve store issues.

This strategy of increased involvement and engagement has been a cornerstone of my tenure. It’s not only about being part of the conversation, it’s about shaping the future of our franchisees and the brand as a whole.

Perhaps one of the most heartfelt changes we implemented was our approach to charity. Before our administration, there was no significant engagement in charitable activities that connected with local FOAs and the stores themselves. We bridged this gap by partnering with Children’s Miracle Hospitals, ensuring that not only 100 percent of our fundraising proceeds go to the cause, but also that the impact of our charitable efforts is felt at the local level with area children’s hospitals benefitting. This initiative is a testament to our belief that a responsible organization must be an active member of its community.

As we stand on the cusp of more changes and advancements, it’s crucial to reflect on the other areas where we’ve made a significant impact. For instance, our efforts in legislative engagement have been substantial. We didn’t shy away from taking a stand on critical issues like swipe fees, credit card charges, and tobacco laws. Our collaboration with government affairs teams and vendors at various levels—local, city, and state—has been pivotal in addressing the legislative challenges that our business faces.

Additionally, the transformation within our national convention has been remarkable. We revolutionized our trade show ordering system, enhancing its accuracy and reliability, which in turn boosted vendor confidence and increased order volumes. It also allowed stores to take advantage of products at discounted costs. This was a tangible improvement that benefited both franchisees and vendors.

Perhaps one of the most significant shifts under my leadership has been the change in our collective mindset. We’ve embraced a culture of positivity and solution-oriented thinking. We’ve actively combated negativity, choosing instead to see the glass as half full. This attitude has been infectious, permeating every aspect of our operations and significantly impacting our relationships with franchisees, vendors, and SEI.

Looking ahead to the challenges of 2024 and beyond, our mindset remains unwaveringly positive. We understand the complexities of our industry—the inflationary pressures, the changes in consumer spending, and the need for operational efficiency. Yet, our approach is to face these headwinds together, as a unified force. We are committed to working with our vendors to maintain competitive costs, thereby ensuring the best execution of promotional activities and product movements.

The future does hold challenges, but it also holds immense potential. We’ve made it our mission to be at the forefront of industry innovations, whether it’s in product categories, store operations, or customer engagement. Our focus is not only on navigating the present, but also on shaping the future of our brand and taking it to the next level.