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.

FTC Poised To Issue Sweeping Regulation Of Online Reviews

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

In June 2023 the United States Federal Trade Commission (FTC) issued a proposed rule which would prohibit certain practices regarding what it characterizes as deceptive or unfair consumer reviews and endorsement practices. This closely followed the FTC’s issuance of written guidelines concerning the use of endorsements and testimonials in advertising, which do not have the power of a regulation.

The FTC has broad powers to regulate commerce and in particular to protect consumers from unfair and deceptive acts and practices. This authority led to the issuance of a FTC Franchise Rule, first enacted in 1979, which requires a franchise disclosure document to be delivered to a prospective franchisee before that person signs an agreement or pays any money.

This proposed regulation comes in the context of the ubiquitous nature of online reviews in all businesses, including those that are franchised. Industry research shows that 95 percent of customers using online reviews state that negative reviews have influenced their decisions. More than half of all customers read at least four reviews before making a purchase, and half of all consumers trust online reviews as much as personal recommendations from friends or relatives.

The FTC posited $1.321 trillion in estimated sales of goods or services for which consumers incorporate reviews into their decision-making and that 10 percent of those sales were the product of review manipulation, yielding total consumer damages of more than $1 billion per year.

One commenter to the proposed rule, The Transparency Company, stated that 54 percent of consumers say that they would not buy a product if they suspected it to have fake reviews, and estimated that consumer injury from fake reviews could be as much as $5 billion per year.

This is, of course, quite relevant to all 7-Eleven franchisees because there are a variety of websites which feature reviews of both corporate and franchised locations. One such website that I consulted listed 10 7-Eleven locations in a particular community, which collectively had 330 reviews apparently written by customers with an average score of 3.6 stars out of 5. A review of SEI’s website listing corporate stores for sale yields similar scores.

The FTC website states: “Our proposed rule on fake reviews shows that we’re using all available means to attack deceptive advertising in the digital age,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The rule would trigger civil penalties for violators and should help level the playing field for honest companies.”

This proposed regulation has been moving through the rulemaking process at breakneck speed. That is unusual because the principal players in the industry that provide platforms for such views are in favor of regulation. The FTC reports that Trustpilot, Google, TripAdvisor and Amazon alone collectively removed more than 300 million reviews from their websites in a single year because they were fraudulent, fake, or violated their internal policies.

It is important to note that this regulation will govern businesses and not consumers.

The comment period for the proposed rule expired at the end of September 2023 and while there can be no assurance that a final rule will be issued, and if so, when it will be issued, the consensus seems to be that a final rule will be issued sooner rather than later.

While we don’t know what form the final rule will take, it appears quite likely that it will contain most or all of the following prohibitions.

1. Selling or obtaining fake consumer reviews and testimonials. A business may not sell or create reviews that report to be authored by individuals or entities that do not exist, did not patronize the business, or misrepresent their experience with the product.
2. Review hijacking. A business cannot take a positive review for a particular product and make it appear that it is a review of a substantially different product.
3. Buying positive or negative reviews. It would be an unfair and deceptive practice to provide compensation or any other incentive in exchange for the creation of a consumer review that expresses an opinion, whether negative or positive. For example, a business owner cannot pay or otherwise compensate their employees to write positive reviews for their business or negative reviews for a competitor.
4. Insider reviews and consumer testimonials. An officer or manager of a business must conspicuously disclose his or her relationship to a business for which he or she provides a consumer review. There must also be a similar disclosure of any instance in which an officer or manager solicitates or demands a consumer review from any employee of the business.
5. Company controlled review websites. If a business chooses to operate its own website, it cannot falsely state or imply that the website is independent of the business.
6. Illegal review suppression. A business cannot use an unjustified threat of legal action, or make a false accusation to prevent the creation of a consumer review or cause for removal of a review. And a business cannot suggest or imply that the reviews on its website represent all or most of the reviews submitted if reviews are being suppressed based on their ratings or negativity.
7. Selling fake social media indicators. Businesses cannot sell or purchase fake indicators of social media influence. This includes selling or purchasing followers, likes and reposts.

We are following these developments very carefully and once the final rule is issued, we will report on any changes or additional provisions that were not in the proposed rule.

Strategies To Beat Inflation In The Retail Industry

By Teeto Shirajee, NCASEF Vice Chairman

In the dynamic world of convenience retailing, 7-Eleven franchisees face the ever-present challenge of inflation, which threatens to erode profit margins and disrupt operational efficiency. However, there are robust strategies that can be employed to counteract these challenges and ensure the sustainability and growth of our 7-Eleven franchises.

A critical step in this battle is stringent cost control. Franchisees must diligently scrutinize every expense, identifying avenues for cost reduction or elimination. This can range from renegotiating supplier contracts for better terms, sourcing more affordable alternatives for specific products, to adopting energy-efficient practices to slash utility and maintenance costs. These measures not only reduce outgoings but also enhance overall efficiency.

Inventory management is another vital area. Regular inventory analysis helps identify slow-moving or obsolete items. By minimizing excess inventory and concentrating on high-demand products, franchisees can optimize cash flow and reduce the negative financial impacts of holding unsold stock, particularly important given the interest costs on inventory.

Adopting price optimization techniques is essential. This entails analyzing market trends, competitor pricing, and customer behavior to determine the most effective pricing strategy for each product. Regularly reviewing and adjusting prices ensures franchisees do not miss out on potential profits and effectively mitigate the effects of inflation.

Strategically selecting which vendor promotions and discounts to participate in can also be effective. Attractive deals on popular products can spur sales and sustain customer loyalty, even amid rising prices. However, it’s crucial to strike a balance between enticing promotions and maintaining overall profitability.

Diversification presents a proactive way to spread the risks associated with inflation. This could mean expanding into new product lines or exploring new market segments. By diversifying, franchisees can reduce their dependency on a single product, market, or vendor, thereby cushioning the business against inflationary pressures.

Building and maintaining strong customer relationships is indispensable. Exceptional customer service and personalized shopping experiences foster customer loyalty, helping your store stand out from competitors. Loyal customers are more likely to remain consistent purchasers, even in the face of price increases.

To summarize, effectively managing inflation as a 7-Eleven franchisee involves a multifaceted approach:

1. Rigorous cost control.
2. Strategic inventory management.
3. Intelligent price optimization.
4. Profit-focused promotions and discounts.
5. Business diversification for risk spreading.
6. Cultivating strong customer relationships and service.

By implementing these strategies, 7-Eleven franchisees can navigate the complexities of inflation, turning potential challenges into opportunities for sustained success and growth. This proactive approach not only helps in maintaining profitability, but also ensures a competitive edge in the convenience store sector.

The Vital Role Of Our NCASEF Committees

By Sukhi Sandhu, NCASEF Chairman

In the ever-evolving landscape and challenges of running a 7-Eleven store, the role of our NCASEF committees is crucial. They are the engines driving positive change and addressing store-wide issues, forming a vital link between our franchisees and SEI.

When I was first elected NCASEF Chairman, my primary goals were to change the culture of the organization into one of partnership and dialogue, and to create a platform where we as a group could work with our franchisor and vendor partners to improve the system to everyone’s benefit. I realized this could not be achieved by the officers of this organization alone. But I also realized the passion and knowledge within our Board of Directors are immense, and I knew this talent could be utilized.

As such, our committees are composed of franchisee leaders who bring a wealth of experience and insights from their stores. Committee members are selected for their expertise, dedication, and passion for improving the 7-Eleven system. Their chief responsibility is to identify, discuss, and propose solutions for a variety of challenges faced by our stores. Each committee is headed by a chairperson and is championed by one of our NCASEF officers, ensuring a robust support system for addressing issues efficiently.

The committees focus on diverse areas such as store operations, finance, technology, logistics, and government affairs. Many of our committees are dedicated to a specific aspect of store management—like Accounting/Finance, Digital/IT/7Now, and Facility Maintenance—while others focus on internal NCASEF matters like bylaws and membership, convention, and charity golf, thereby ensuring targeted solutions.

Working closely with SEI’s upper management, department heads and subject matter experts, our committees serve as vital communication bridges. They bring to light the issues faced at the store level and work with SEI to devise effective solutions. This collaboration is critical. It ensures that the voices of our franchisees are heard and considered in the decision-making processes that affect their businesses. Our committees’ authentic, on-the-ground insights are invaluable to SEI in understanding the practicalities and nuances of running a franchised 7-Eleven store.

Our committees operate on a dynamic and responsive model. Issues raised by members at local FOA meetings are escalated to the NCASEF Board, where they are then assigned to the relevant committee. The committee chairs play a crucial role in addressing these issues, working closely with SEI and other stakeholders to find solutions. These solutions are then communicated back down the chain, from the FOA presidents and vice presidents to the individual franchisees.

The effectiveness of our committees is evident in the progress updates they provide during every NCASEF Board of Directors meeting. These updates are comprehensive reports reflecting the ongoing dialogues and engagements with SEI. Each Board meeting, in turn, is an opportunity to review the progress on existing issues and to introduce new challenges identified by our franchisees. This constant flow of information keeps the NCASEF Board informed and involved in the problem-solving process. Additionally, our committees educate us on best practices—knowledge that our Board members can then take back to their respective FOAs.

It’s important to emphasize the constructive nature of our relationship with SEI. These meetings are not just about presenting problems, but are a platform for collective problem-solving and mutual growth. Over the last two years, we have seen significant positive changes coming from these dialogues, reflecting the effectiveness of our joint approach.

The work of our committees is a testament to the value of teamwork and communication. By working hand-in-hand with SEI, we are not just solving problems; we are strengthening the relationship between our franchisees and corporate. This collaborative spirit is at the heart of what we do at NCASEF. It’s about ensuring that our franchisees have the support, resources, and voice they need to thrive.

Our NCASEF committees are also a testament to our commitment to leveraging the shared talent and passion of our members. Their dedication and volunteerism are invaluable, making a significant impact on the effectiveness and success of our organization. As Chairman, I am immensely grateful for the hard work and contributions of these committee members, who continuously strive to affect positive change within the 7-Eleven system.

As we move forward, the role of our committees will continue to be central to our efforts in advocating for and supporting our franchisees. The challenges in the 7-Eleven system are ever-evolving, and so are the strategies and solutions needed to address them. With our committees at the forefront of these efforts, I am confident that we will continue to overcome challenges and seize new opportunities for the benefit of all 7-Eleven stakeholders.

The Power Of Respectful Dialogue

By Joe Rossi, NCASEF Executive Vice Chair

There’s no underestimating the power of open, honest, and respectful communication, especially when it comes to our interactions with representatives from 7-Eleven, Inc. (SEI). In my role as NCASEF Executive Vice Chairman, one of my key responsibilities is to ensure that the voices of our franchisees are heard, their concerns addressed, and their experiences shared. This is especially crucial when we’re in discussions with SEI, where our goal is not just to present our challenges, but to work collaboratively towards solutions that benefit everyone involved in this great system.

It’s important for us, as franchisee leaders, to express the pain points of our members. These are not just individual grievances or operational hurdles; they often represent broader, system-wide issues that can impact the success and sustainability of our stores. When we meet with SEI representatives, whether it’s during FOA meetings, NCASEF gatherings, or SEI-hosted committee meetings, we have a platform to bring these issues to light.

However, it’s crucial that these discussions remain civil and respectful. In any relationship, especially one as intricate and interconnected as ours with SEI, the tone of our conversations can set the stage for the outcomes. By maintaining professionalism and respect, we foster an environment where open communication is not just possible, but productive. This approach has helped us move away from confrontational standoffs and towards constructive dialogues, where both sides can express their perspectives, understand each other’s positions, and work together towards common goals.

In these discussions, it’s more beneficial to focus on global, system-wide issues rather than store-specific problems. While individual store challenges are certainly important, addressing broader issues can lead to changes and improvements that benefit a larger group of franchisees. For instance, discussing topics like inventory efficiencies, accounting system issues, or IT and Digital improvements can have a ripple effect, improving operations across all stores. These conversations can lead to strategic changes that elevate the entire brand, rather than just addressing isolated incidents.

This new era of open communication between SEI and franchisee leaders is not just about airing grievances; it’s about collaboration and partnership. It’s about coming together to identify challenges, brainstorm solutions, and implement strategies that propel our stores and the brand forward. We’ve seen positive outcomes from these discussions, including policy adjustments, improved support systems, and even the rollout of new programs that directly address the issues we’ve raised.

One of the key advantages of having these dialogues in formal settings like FOA or NCASEF meetings is the structured environment they provide. These forums allow for organized discussions, where issues can be presented systematically, and responses can be thoughtfully considered. Additionally, having these conversations in the presence of other franchisees and leaders can spark further insights and ideas, enriching the dialogue and leading to more comprehensive solutions.

As franchisee leaders, we have a responsibility to represent our members effectively and constructively. Our discussions with SEI are pivotal in shaping the future of our stores and the brand as a whole. By focusing on system-wide issues, maintaining a respectful and professional tone, and taking advantage of the structured forums provided by FOA and NCASEF meetings, we can ensure that our voices are not just heard, but are instrumental in driving positive change.