June 1, 2025
By Sukhi Sandhu, NCASEF Chairman
The traditional three-legged stool of our system—franchisees, vendors, and SEI—has supported us for years. But in today’s environment, that structure needs to evolve. Distributors are now playing a larger role in helping our stores stay in stock, and they deserve to be recognized as partners in our success. Adding that fourth leg gives us a more stable foundation, one that reflects the realities of our business today and what it’s going to take to succeed in a very different retail environment.
Right now, we’re all feeling the pressure, and every day brings new challenges—economic uncertainty, rising costs, shifting regulations, and customers who are being more cautious with their money. If we want to grow in this environment, we have to be smarter, faster, nimbler, and more unified. That’s where this four-legged model comes in. Franchisees, vendors, distributors, and SEI each bring something unique to the table, and when we work together, we become more resilient. Simultaneously at the store level, we should take matters into our own hands and use every tool available to us to increase our bottom lines.
Among the tools we have to bring more value into our stores are SSIs—Store Supported Items—and NRIs, or Non-Recommended Items. These tools allow us to get new products on shelves without waiting for the long approval process that sometimes delays innovation. If a vendor or distributor has a product they believe will sell, we should give it a shot. If it performs well, everyone wins—including SEI, which benefits from the gross profit split. This approach lets us respond quickly to shifting consumer behavior and test new items directly in our stores. It doesn’t matter if it’s a regional product or a national product, as long as it helps us stand out from our competitors.
I’ve told vendors directly: don’t be afraid to bring us new ideas. We want to work with you. NCASEF and our member FOAs are ready to support these efforts, and we’re considering using resources that can help us identify unique items and bring them into our stores. This is a way of creating opportunities for franchisees to grow sales while giving customers more of what they want—great products at great value.
The flexibility that SSIs and NRIs offer is especially important as customers continue to change their buying habits. People are looking for lower prices, better quality, and more convenience. They’re drawn to items that feel like a good deal, and we should be doing everything we can to meet those expectations. That’s where local innovation shines. Many FOAs and franchisees already have great ideas about what works in their neighborhoods. SSIs and NRIs give them the freedom to act on those ideas.
What some vendors may not fully realize is that we already have the leeway to purchase up to 15 percent of our inventory from Non-Recommended Vendors. This 15 percent can go a long way—especially when used strategically to test new products or meet local consumer demand. In fact, many stores don’t even come close to using their full non-recommended vendor purchase allowance. This is untapped potential just waiting to be used. If you’ve found something that works in your market, don’t be afraid to bring it in. We have the tools, so let’s use them.
But SSIs and NRIs are just one part of the equation. Distributors also play a critical role in solving supply chain issues, helping us fill inventory gaps, and getting new products delivered quickly. Many distributors are now part of our Affiliate Member program, and having them engaged in our strategy adds a layer of support that strengthens the entire system because they may have products in their warehouses that aren’t in the 7-Eleven system, but the distributor can sell them directly to us and get those brands into our stores. This is another reason why there should be a closer relationship between distributors and NCASEF and local FOAs.
We also have to think about how we work together. None of this will succeed if we aren’t communicating openly and honestly. The only way this four-legged stool will hold is if all four legs are steady. That means franchisees need to be vocal about what’s happening in their stores. Vendors need to hear from us directly when issues arise. Distributors should have access to clear feedback about delivery performance. SEI local leadership should listen to franchisees and help resolve store level issues. True collaboration requires trust, and trust only grows when everyone listens and responds.
The good news is that SEI is also aware of how serious the situation has become. They’ve acknowledged the economic pressures we’re facing—from inflation and potential new tariffs to slowing foot traffic and changing consumer behavior. During recent discussions, SEI leaders shared plans to help stores by investing in 7Now, expanding the Gold Pass program, and launching more promotions to drive loyalty. They’re also working to improve value through private-label items and proprietary beverages, which they identified as major drivers of traffic and profitability. They’re reevaluating their fresh food strategy, too, with a sharper focus on quality, simpler offerings, and value-driven promotions. These are important steps, and we’re hopeful they’ll continue listening and adjusting based on feedback from franchisees.
Another important piece of this puzzle is the legal and political environment around us. Some of our competitors continue to sell banned products without consequences. Others benefit from looser enforcement or gray areas in regulation. That’s not fair to our stores, and it’s hurting our ability to compete. NCASEF is exploring consultation with experienced lobbyists and legal experts on how to push for smarter, more consistent enforcement and how to fight for legislation that supports our business. That includes issues like SNAP rule changes, rising retail theft, and new sources of revenue from categories like gaming.
We’ve already seen what happens when franchisees raise their voices and work together. Prop 36 in California is a great example. Now, we need to expand that momentum nationwide. Our stores are the backbone of thousands of communities. We need laws and policies that protect us and let us grow, not rules that tie our hands while letting bad actors cut corners.
So the message I want to leave with you is this: we don’t have to wait to fix things. We have the tools right now—SSIs, NRIs, distributor partnerships, vendor collaboration, and a growing coalition of committed franchisee leaders. If we use them wisely, we can drive more value into our stores and deliver a better experience to the customers who count on us every day.
Join Us In Anaheim For NCASEF’s 49th Annual Convention & Trade Show
As we continue to build momentum and strengthen our partnerships, I invite all franchisees, vendors, and distributors to join us at our 49th Annual Convention and Trade Show, taking place July 21–24, 2025, at the Anaheim Convention Center in Anaheim, California.
This year’s event promises to be our most impactful yet. It’s a chance to connect directly with fellow franchisees, explore new products, and engage with vendors and distributors who are eager to support your success. The convention will feature educational sessions with NCASEF officers and SEI representatives, networking opportunities, and a two-day trade show where you can discover the latest innovations from our valued vendor partners.
For franchisees, this is an opportunity to gain insights, share experiences, and learn strategies to enhance your business. Vendors and distributors will have the chance to showcase their products and services, build relationships, and understand the needs of 7-Eleven franchisees better.
Let’s come together to share ideas, celebrate our achievements, and plan for a successful future. Your participation is vital to the strength and unity of our community. Please visit www.NCASEF.com for more information and to register.
I look forward to seeing you in Anaheim.
June 1, 2025
Eric H. Karp, General Counsel
The saying “the only constant is change” is often attributed to the ancient Greek philosopher Heraclitus. It essentially means that everything is in a state of constant flux, and nothing remains static or the same forever. So it is with your franchisor.
7-Eleven has come a long way since it introduced the convenience store concept in 1927, began using the 7-Eleven brand in 1946, started offering franchises in 1964, was acquired by its current parent through a tender offer in 2007, purchased 1,030 Sunoco stores in 17 states for $3.3B in 2018, acquired the 3,800 units in 36 states Speedway chain from Marathon Petroleum Corp. for $21B in 2021, and acquired an additional 204 stores from Sunoco in April 2024. The three most recent events have further changed the profile of the system, both internally and compared to its competitors.
As of this writing, the merger talks between the parent companies of 7-Eleven and Circle K have advanced to the point of having signed a non-disclosure agreement, engaged in due process disclosure of information, and solicited bids to sell 2,000 stores in the United States in order to increase the likelihood of antitrust clearance from the Federal Trade Commission. The parent company of 7-Eleven has also announced plans to take the U.S. operations public in the first half of next year. By the time you read this, there may be much more consequential news on this front, so there is no reason to speculate on what the next few months may bring. But it is useful for franchisees to understand the metamorphosis of the system, from viewpoints both within the system and outside the system.
Outside The 7-Eleven System
According to the most recent report from Convenience Store News, the convenience store market in the United States consists of approximately 152,000 stores but remains highly fragmented. Only 30 percent of those stores are operated by the top 100 chains, and just 19 percent by the top ten chains, in each case measured by the number of locations.
The top three chains are 7-Eleven, Inc., Alimentation Couche-Tard, Inc. (ACT)—the parent company of Circle K—and Casey’s General Stores. These top three chains account for a little more than 21,000 locations and approximately 14 percent of the convenience store market. Notably, 7-Eleven has more than twice as many locations as ACT, and ACT has more than twice as many locations as Casey’s General Stores. No chain ranked below #3 has more than 1,500 locations.
While approximately 60 percent of the 7-Eleven stores are franchised, Convenience Store News reports that Circle K has 603 franchised stores and Casey’s has none. Significantly, the convenience stores rounding out the top ten chains, occupying ranks 4 through 10, have exactly 1 franchised store among them. The import is that although the percentage of 7-Eleven locations that are franchised has decreased in recent years, the system is still an outlier in that more than 60 percent of its U.S. locations are the subject of franchise agreements.
Inside The 7-Eleven System
Here are some observations about how the 7-Eleven system in the United States has changed in material ways that are highly relevant to franchisees:
- For 10 years beginning in 2011, the number of franchised stores in the United States climbed steadily, reaching 7,474 in the year of the pandemic, 2020. Since that year the number of franchise stores has declined by a total of 245 locations.
- The number of company owned locations jumped significantly with the acquisition of the Sunoco chain in 2018 and the Speedway chain in 2021, resulting in more than 5,200 company owned locations at the end of that year, which included the Sunoco, Speedway, Stripes and Laredo Taco locations However, 7-Eleven closed 737 company owned locations in 2024, dropping the total number of company owned locations for the second year in a row.
- These acquisitions changed the profile of the system from one that had 39 percent of its locations with gas in 2017 to 64 percent in 2024, a dramatic increase by any measure.
- The 2025 FDD of 7-Eleven states that as of the end of last year, it operated 3,801 other convenience store locations under names other than 7-Eleven … primarily under the “Speedway” and “Stripes” brands. We do not offer franchises for any of these other convenience store brands, but we may convert some of these other stores to 7-Eleven stores and franchise some of them after conversion.
- Another result of these changes is that the percentage of total locations that are franchised fell from 89 percent in 2017, to 80 percent in 2018 and 58 percent in 2021. In part as the result of the closing of corporate stores in 2024, the percentage of locations that are franchised now stands at 60 percent.
- The number of corporate stores sold to franchisees was on a steady downward trend from 485 stores in 2016 to 161 stores in 2022. The number of stores sold to franchisees recovered slightly in 2023 and 2024 to 277 and 300, respectively.
- We define the Franchise Turnover Rate as the percentage of locations repurchased by 7-Eleven as well as those which were abandoned by the franchisee or which otherwise ceased operations. Over the last four years, the Franchisee Turnover Rate has averaged 7.6 percent per year while the number of franchised locations has declined by an average of 1 percent per year.
- The recent decline in the number of franchised stores taken together with the decline in the percentage of total stores that are franchised has resulted in a parallel decline in the percentage of the franchisor’s revenue that is derived from the gross profit split paid by franchisees. The percentage of such revenue declined from more than 15 percent in 2016 to 4.9 percent in 2024, a more than 2/3 reduction.
While these changes are indeed material and, in some cases, transformative, they may pale in comparison in the event there is a transaction with ACT or if the parent company of 7-Eleven moves forward with its plan to take the U.S. operations public in 2026. Either way, these events are quite consequential to every franchisee in the United States, and we will continue to carefully monitor them and report everything that is made available to us.
May 1, 2025
Teeto Shirajee, NCASEF Vice Chair
As small business owners, we’re no strangers to economic pressures—whether it’s rising labor costs, shrinking margins, or supply chain disruptions. But President Trump’s recent implementation of extensive tariffs adds yet another layer of concern that could hit our stores where it hurts: the cost and availability of products. If these tariffs continue for an extended period of time, the impact on our operations could be significant.
Many of the items we stock—electronics, prepared foods, and even some popular snack and beverage brands—are imported from countries now subject to increased tariffs. This means the cost to stock our shelves will soon go up. That puts us in a tough spot. Do we pass those costs onto customers and risk pushing them away? Or do we absorb them and watch our margins erode? Either way, our ability to remain competitive and profitable takes a hit.
Tariffs create ripple effects in the supply chain. When our suppliers face higher costs, they may cut corners, delay shipments, or even stop offering certain products altogether. That can lead to bare shelves and frustrated customers who may decide to shop elsewhere. And when everyday staples become more expensive, customers—especially those on tight budgets—might change their buying habits. They could reduce their purchases, switch to cheaper alternatives, or avoid our stores entirely. These behavioral shifts may reduce our traffic and hurt overall sales.
For many of us, sourcing product has already become more complicated in recent years. These tariffs could make it even harder to secure items at a competitive price. We may soon have to search for new suppliers or reconsider what products we offer. The flexibility to pivot quickly will be key, so we must work closely with our franchisor to ensure our brand remains top-of-mind with customers.
To protect our stores, we need to be proactive. Reviewing our pricing models is one place to start—adjusting prices carefully to maintain customer loyalty while recovering some of the added costs. Another option is supplier diversification. If we can find alternatives that aren’t affected by tariffs—either local sources or imports from non-penalized countries—we may be able to soften the blow. Promoting local or U.S.-made goods can also be a smart move, especially as customers increasingly value “Made in America” products.
Inventory management will become more important now. We should consider stocking up on bestsellers before manufacturer price hikes take effect, and keep a closer eye on sales trends to avoid over-ordering. Meanwhile, transparent communication with customers can go a long way. Explaining why prices may increase—without placing blame—helps maintain trust and positions us as honest, community-oriented business owners.
Finally, cutting operational costs where possible could help offset some of the financial pressure. Whether that’s re-evaluating labor schedules, reducing energy use, or leveraging technology to streamline operations, every dollar saved can make a difference.
In times like these, we must stay alert, informed, and united. Tariff policy is a moving target, and its impact on our business is real. By sharing information, supporting one another, and pushing for more flexibility from 7-Eleven, Inc., we can better manage the challenges ahead. We’ve weathered tough conditions before, and with the right strategies in place, we’ll weather this one, too.
May 1, 2025
Sukhi Sandhu, NCASEF Chairman
Right now, there’s a lot of uncertainty in the economy, and that uncertainty is hitting our stores. Customers are spending less because they have less disposable income and are unsure about the future. We’ve heard it from SEI’s own team during our recent NCASEF Board meeting—consumer spending is slowing down, and that means we need to do more with less. The question we need to ask ourselves is: What can we do to stay profitable in this environment? The answer starts with one word—teamwork.
As franchisees, we’re all in this together. That means the best way to get through these tough times is to learn from each other. Sharing what’s working—and what’s not—is more important now than ever. During our first quarter Board and Affiliate Member meetings, we had conversations about vendor partnerships, local product opportunities, and ways to work smarter, not harder. The Affiliate Member meeting breakout workshops were packed with great discussions and ideas, and it’s up to us to take those ideas back to our FOAs and store teams. The truth is, there’s no silver bullet solution—but when we pool our best practices, we create a powerful resource that helps all of us weather this storm.
One area that deserves more attention is how we manage our finances—especially our Open Accounts with SEI. In an article in the last issue of Avanti, Todd Umstott laid out a great explanation of how the Open Account works and why it’s so important to monitor your store equity, cash levels, and inventory. As Todd said, “Every financial decision carries greater weight, as profit margins tighten under economic pressure.” Managing your Open Account isn’t just a numbers game—it’s about making your money work smarter. For example, if you have too much inventory, you’re paying interest on those dollars. If you keep excess cash in your personal account as opposed to your Open Account, it increases your liabilities. But if you grow your equity, you can reduce or even eliminate interest charges—and in some qualified cases, SEI will actually pay you interest up to a limited amount (please refer to the specifics of your franchise agreement for that amount).These are tools all of us should be using to keep costs down and improve our cash flow.
Besides managing our Open Accounts, we need to get creative with our product selection. Many customers are being more frugal with their money right now. According to a March 2025 report from the U.S. Bureau of Economic Analysis, consumer spending growth has slowed significantly, especially in retail. Households are pulling back on non-essentials, and many are trading down to lower-priced options. That’s a wake-up call for us. If our stores don’t offer affordable alternatives, we’re going to lose sales to someone who does.
One solution is to work with vendors and practice Retail Initiative to bring in new items that make sense for your store and your customers. If these items aren’t already recommended you can enter them as Store Supported Items (SSIs), which gives you more flexibility and control over your assortment. This came up during one of our breakout discussions at the Affiliate Member meeting, where franchisees shared how they’re setting up SSIs and working with local suppliers to bring in legal, unique snacks, beverages, or other products that customers want—without having to go through a long approval process. Regional top-selling items can also help differentiate your store from the competition, which is key when customers are looking for value and variety. This increases foot traffic and baskets, and goes a long way in retaining customers.
Another option is to look for products that are more affordable alternatives to what’s currently on your shelf. If your community is price-sensitive right now—and many are—then stocking items that cost less and meet the same need could help you hold onto more of your customer base. Again, this is where communication helps. Talk to other franchisees in your FOA. Ask what they’re selling that’s working. Share what items your customers are asking for. The more we talk, the more we can help each other succeed.
It’s also worth revisiting how we approach promotions. During the Board meeting, we emphasized the importance of getting involved in high-margin promotions to drive profitability. SEI is planning some strong regional beverage promos for P2, like 89-cent single drinks and mix-and-match single beer deals. These aren’t mere marketing fluff—they’re tested traffic drivers. If your store isn’t taking advantage of these promos, you could be leaving money on the table. High-margin promos help boost gross profits while offering value to customers, and that’s a win-win in today’s economy.
We also heard SEI talk about owning the snacking space, pushing proprietary items, and making a bigger regional push. That tells me they’re recognizing the need to be more nimble—and so should we. Maybe your store sells a lot of spicy snacks, or perhaps energy drinks fly off the shelves in your area. Lean into that. Talk to your FOA, talk to your field consultant, talk to your fellow franchisees. The more data we share, the more dialed in we can get with our merchandising strategy.
At the same time, the NCASEF officers and Board are actively working with SEI and our vendor partners to overcome the present challenges facing our stores. We’re also discussing ideas like hiring lobbyists who can help us get legislation passed at the local, state, and federal levels that support small business owners like us. Additionally, we are discussing bringing in subject matter experts to help stores strengthen their asset protection programs, which is essential these days with retail crime on the rise. Another area where shared knowledge can make a big impact is insurance. Franchisees can help keep claims low—and premiums under control—by exchanging tips on safety practices, staff training, and incident prevention. By working together and supporting our franchisee captive insurance program, we can maintain affordable coverage for everyone.
All of this brings me back to one simple truth: we are stronger when we share what works. That’s why I encourage every franchisee reading this to participate in FOA meetings, reach out to your colleagues, and be part of the conversation. Don’t wait until your sales dip to ask for help—start building your playbook now, while you still have options to test and learn. The most successful franchisees are planning ahead and leaning on their peers, and not just sitting back and reacting to the economy. While we continue to have discussions with our franchisor about ways to improve store sales and franchisee income, I also encourage you all to adjust your store and personal budgets. I’m doing it—although I would rather not—but the harsh reality is that we have to tighten our belts during these financially lean times.
The economy might be unpredictable, but the strength of our network doesn’t have to be. We’ve built something powerful in NCASEF—an organization full of dedicated franchisees, committed to helping each other grow. Let’s keep sharing best practices. Let’s keep learning. And let’s make sure no one is facing these challenges alone.
February 1, 2025
Sukhi Sandhu, NCASEF Chairman
With 2024 now behind us, it’s safe to say last year felt like a rollercoaster ride for 7-Eleven franchisees. We’ve faced some big challenges, but also pulled off some impressive wins. Looking back, it’s clear that our resilience and unity got us through some tough times. Now as we gear up for 2025, I am confident we can tackle any issues that may come our way together as a team.
Last year wasn’t easy. Growing sales was a major challenge, and rising operational costs ate into our profits. Stores on the east coast experienced logistical problems with the Regional Distribution Centers (RDCs), which made it harder to get products and placed extra pressure on franchisees to find solutions on their own. But despite this, east coast franchisees rose to the occasion, keeping shelves stocked and customers happy through sheer determination and creativity.
The rollout of RIS 2.0 was a big step forward in terms of modernization, but it didn’t come without its hiccups. The transition caused disruptions, and both stores and customers felt the effects, like when network outages affected credit and debit card processing. Post-COVID, it seemed like some vendors and even corporate teams had gotten too comfortable relying on automated tools like guided replenishment and electronic ordering. These systems have their perks, but they’re not perfect—and when things go wrong, they can cause real headaches. Issues like outdated minimums and unchecked electronic orders created inefficiencies that franchisees had to fix, often on the fly.
Labor issues were another tough spot. Finding and keeping good workers has been harder than ever. The labor pool has changed, with many workers less willing to take on the demands of retail jobs. Turnover went up, training costs climbed, and all of it added to the stress of running a store. And let’s not forget retail theft—it hit record levels last year, adding yet another layer of frustration and driving up insurance costs for everyone as smash and grab claims skyrocketed.
The economic environment didn’t do us any favors, either. High interest rates made borrowing more expensive, impacting some franchisees who have to rely on SEI to help finance their inventory. Inflation pushed operational costs even higher and affected consumer spending habits. For many franchisees, this meant finding ways to cut costs and run stores as efficiently as possible while still delivering great customer experience and value. It wasn’t easy, but franchisees proved they could adapt and find creative solutions to keep things moving.
To make things tougher, the Franchisee Operating Credit program—the $200 monthly support many franchisees relied on—ended last year for those who signed the 2019 Agreement. The 7Now subsidy also ended, as did the auto GGPS of 100 and 150 basis points (but we worked out a solution for that, which I will explain below), placing additional financial pressure on franchisees.
But even with all these challenges, we had some big wins in 2024. Our collaboration with SEI improved in key areas. For example, we formed committees comprised of franchisee subject matter experts to tackle logistics issues and IT concerns with SEI. We also joined with SEI to introduce a franchisee-owned captive insurance program to help franchisees get the coverage they need while managing costs. Additionally, just as the auto GGPS reduction policy was set to end on December 31, your NCASEF and FOA leadership teamed with SEI to develop a new “earned” GGPS reduction model with the potential for the same or greater support as the previous program. These achievements show how much we can accomplish when all stakeholders work together and stay focused on common goals.
In California, franchisees took a proactive approach to tackling retail theft by joining forces with SEI, other business operators, lawmakers, and law enforcement agencies to push for legislative changes. Our efforts culminated in the passage of Prop 36 during the November elections, a measure aimed at strengthening penalties for repeat offenders and providing better support for theft prevention. 7-Eleven franchisees and FOAs from across the country also pitched in financially to help make this new law a reality, which is a significant step forward in addressing the growing issue of retail crime and could become a model for other states.
A huge highlight this year was hitting the $1 million mark in fundraising for Children’s Miracle Network Hospitals. Events like our convention’s Charity Golf Tournament and Charity Night Gala, as well as the golf tournaments held during our Board meetings and those organized by FOAs, were instrumental in our fundraising efforts. This milestone reflects our generosity, our commitment, and that we believe in giving back to our local communities, and it’s something we can all be proud of.
Our annual convention and trade show was another high point. Franchisees and vendors showed up in record numbers to network, exchange ideas, and find new sales opportunities. The energy and enthusiasm at this event were inspiring, reminding us why unity and collaboration are at the heart of what makes our brand strong.
Looking ahead to 2025, we know it won’t be a walk in the park. Inflation is still affecting consumer spending and we’ll still be dealing with rising audit inventory variances, insurance premiums, and labor costs. So, how do we tackle these challenges?
First, we’ve got to make store operations easier and less stressful for employees. Simplifying processes and reducing workloads will make 7-Eleven a more attractive place to work, helping us hold onto good employees and save on training costs.
Next, managing insurance premiums will take a group effort. Franchisees need to join our captive insurance program and learn how to keep the number of claims low. Education and training will be key here, helping everyone understand how claims are incurred and how to prevent them.
We also must get more involved in legislative affairs at the local, state and federal levels so we can influence bills affecting our businesses. This is essential, as retail theft continues to rise and as more municipalities across the country look to pass new measures that could negatively impact our operations and bottom lines.
We also need to address audit inventory variances, one of our biggest expenses. This means improving how we handle things like waste tracking, inventory control, and cycle counts. In addition, we need to manage the quality and dollar amount of our inventory more efficiently without running out of products. If we can tighten up these processes, we’ll see real savings and a healthier bottom line.
Food service will be a major focus next year. It’s a category with a lot of potential, but it also comes with challenges. Simplifying processes and improving inventory quality will help us make the most of this opportunity, as will keeping our stores clean and providing exceptional customer service. We also need to work with SEI to ensure we have a top-notch maintenance program so the equipment is always functioning properly.
Plus, we need to keep pushing to bring in new products and categories to stay competitive and keep customers excited. This includes working with our vendor partners to get better cost of goods. Another priority in 2025 will be to grow our private brand items without cannibalizing the national brand items that consumers look for in our stores and are loyal to.
We also need to keep pushing for better technology and infrastructure. Improvements to SEI’s IT systems could make a big difference in day-to-day operations, and investing in store remodels and new equipment will help us stay competitive. It’s up to us to advocate for these changes and show SEI how they can benefit everyone involved.
Finally—and I direct this not only to franchisees, but also to our SEI colleagues and our vendor partners—we are, all of us, overworked. Therefore, it is essential that we keep a close eye on our health and well-being so we can keep driving the brand and our businesses forward, and keep morale up for everyone.
I have several ideas I would like to see implemented this year through NCASEF that I believe would help us achieve some of our goals this year. These include hiring lobbyists to help introduce and influence bills that will benefit our businesses, hiring a PR firm to promote our successes and communicate our messages to trade publications and in social media, hiring asset protection consultants to show us how to prevent or minimize theft in our stores, and hiring insurance consultants who can educate us on how to minimize claims.
At the end of the day, our success in 2025 will come down to teamwork. By sticking together, sharing ideas, and supporting one another, we can tackle anything that comes our way. The principles of the “three-legged stool” are more relevant than ever: franchisees, SEI, and vendors all have a role to play in making the brand successful.
“Looking back, it’s clear that our resilience and unity got us through some tough times.”
“But even with all these challenges, we had some big wins in 2024.”
“These achievements show how much we can accomplish when all stakeholders work together and stay focused on common goals.”
“At the end of the day, our success in 2025 will come down to teamwork.”
February 1, 2025
Teeto Shirajee, NCASEF Vice Chair
Community service is a cornerstone of what makes us human. As president of the South Florida FOA, I am deeply honored by the proclamation issued recently by the Palm Beach County Board of Commissioners recognizing the tremendous efforts of our local 7-Eleven franchisees. This proclamation serves as a celebration and a call to action, reminding us of the transformative impact of small business ownership and community engagement. Palm Beach County’s acknowledgment highlights our role as community leaders. From inventing the convenience store concept to being the first to offer 24-hour service and “coffee to go,” 7-Eleven has long been a pioneer in meeting customer needs. But as the proclamation notes, our role extends beyond convenience. With 65 stores in Palm Beach County, we have generated thousands of jobs and contributed millions of dollars in sales taxes that strengthen our local economy.
The South Florida FOA has always believed that community service goes hand in hand with business success. The proclamation mentions our collaboration with Habitat for Humanity, which has resulted in the construction of seven homes for deserving families. This partnership exemplifies how we as franchisees can use our resources and platforms to build stronger communities. Our commitment to supporting the community has also been evident during times of crisis. During Hurricanes Irma and Ian, South Florida franchisees donated thousands of cases of water to those in need, demonstrating our compassion when it mattered most. Moreover, we’ve made it a tradition to offer free coffee to first responders—a small gesture of appreciation for the enormous sacrifices they make to keep our communities safe. These acts of service embody the spirit of 7-Eleven: going above and beyond to meet the needs of others.
In 2023, South Florida franchisees raised over $12,000 to support children in need of medical care at local Children’s Miracle Network Hospitals. This effort reflects a shared belief that investing in the well-being of our youngest residents is an investment in the future of Palm Beach County. Every dollar raised, every cup of coffee served, and every case of water donated is a testament to the power of our collective action and the profound difference it can make.
This level of service is only possible because of the incredible dedication of our franchisees and their employees. Operating 24 hours a day is no small feat, but it is this commitment that has earned the trust and loyalty of our customers. The relationships we build through these efforts are what turn customers into neighbors and neighbors into family. I see this proclamation a reflection of the values that define the South Florida FOA. It reminds us that excellence is not just about running successful businesses, but about using our platform to uplift those around us.
We are inspired to continue providing the best service to our customers and our communities. This recognition fuels our passion for finding new ways to serve, whether it’s through supporting local charities, helping our neighbors in times of need, or simply providing a warm, welcoming place for customers at any hour of the day. As franchisees, we are proud of what we have accomplished, but the work doesn’t stop here. This proclamation is a reminder that we must continue to lead by example, setting a high standard for community service and customer care. It is also an invitation for others—businesses, individuals, and organizations alike—to join us in building a stronger, more connected Palm Beach County.
As the proclamation so eloquently concludes, “Oh Thank Heaven for 7-Eleven.” But more importantly, thank heaven for the communities that support us, the employees who stand with us, and the customers who inspire us. Together, we can continue to make a difference, one cup of coffee, one donation, and one act of service at a time. Let this proclamation serve as a beacon of what we can achieve when we come together, united by a shared commitment to excellence and compassion.
Contact Info
Teeto Shirajee can be reached at 954-242-8595 or teeto.shirajee@yahoo.com
“As president of the South Florida FOA, I am deeply honored by the proclamation issued recently by the Palm Beach County Board of Commissioners recognizing the tremendous efforts of our local 7-Eleven franchisees.”
“The South Florida FOA has always believed that community service goes hand in hand with business success.”
“Together, we can continue to make a difference, one cup of coffee, one donation, and one act of service at a time.”
February 1, 2025
By Eric H. Karp, Esq., General Counsel To NCASEF
In an article published in C-Store Five on December 16, 2024, the reporter opined that 7-Eleven has experienced significant financial setbacks in 2024 as it faced mounting economic challenges brought on by inflation, not to mention a potential management buyout and initial public offering. According to this article, 7-Eleven CEO Joe DePinto stated in April of 2024 his expectation that inflation would continue to tighten consumer pockets. In October of last year, as SEI revealed plans to close 444 convenience stores in North America due to underperformance, it also announced that it would sell $750 million worth of property via sale and leasebacks.
These statements are wholly consistent with publicly filed documents by SEI’s parent indicating that in 2024 they would have a non-recurring gain of some $520 million from the sale and leaseback transactions, and a one-time loss of $365 million due to the closure of unprofitable stores. The parent company also predicted that SEI operating income for 2024 would be down 33.7 percent from the prior year and that EBITDA would be down 15.4 percent. More importantly for franchisees, they also predicted that same store sales would be down 3 percent on the year.
That news is not surprising given that YOY same store sales have been negative from September 2023 through October 2024. In November 2024, same store sales were essentially flat, reported as up 0.1 percent. But these numbers also show that same store sales have been outpaced by inflation for 22 months in a row.
The company also announced plans to open 600 large food-focused locations in North America by the end of 2027, with approximately 115 of those locations operating by the end of 2024. This may be good news for shareholders, but it’s not clear that it will have any impact on store level sales or profitability for franchisees.
SEI Senior Vice President Randy Quinn was quoted as saying that everything in the article was accurate, except that the 440 closures were not because of inflation weary customers, but because they were negative EBITDA and should have been closed years ago. Some have seen this and characterized it as daylight between Mr. DePinto and Mr. Quinn, but the facts suggest otherwise.
The parent company’s public reports for the first half of 2024 indicated that the reasons for lackluster same store sales included the high cost of living, depleted savings, higher debt, more living from paycheck to paycheck, and evolving consumer expectations for such things as the quality of food, faster and easier fueling, digital innovation, and larger and newer stores. The parent company also indicated that their oft-repeated 4-point strategy involved growing proprietary products, accelerating digital and delivery, improved efficiency and cost reductions, and growing and enhancing the store retail network. In the end they are both right. As the parent company has stated, one of the reasons the stores in question have been underperforming is because the cost of living, measured by inflation, has created downward pressure on sales.
In fact, the closure of 440 stores is not really news. According to our SEI franchise disclosure documents, nearly 1,600 company stores were closed in the U.S. from 2015 through 2023. And during the period 2016 through 2023 the turnover in franchise stores averaged 6.75 percent per year.
From my perspective, the issue of store closures and the reasons for them are grounded in the need of the parent company to unlock what it perceives to be unrealized shareholder value as a way of fending off the unsolicited bid from the parent company of Circle K and to protect management from displacement. But franchisees need not be distracted by these concerns, because the much more important issues of franchised store level financial performance, economics and value need to be urgently addressed by whoever controls and manages these companies.
Contact info
Eric Karp can be reached at 617-512-9004 or ekarp@wfrllp.com
“According to this article, 7-Eleven CEO Joe DePinto stated in April of 2024 his expectation that inflation would continue to tighten consumer pockets.”
“That news is not surprising given that YOY same store sales have been negative from September 2023 through October 2024.”
“As the parent company has stated, one of the reasons the stores in question have been underperforming is because the cost of living, measured by inflation, has created downward pressure on sales.”
“From my perspective, the issue of store closures and the reasons for them are grounded in the need of the parent company to unlock what it perceives to be unrealized shareholder value as a way of fending off the unsolicited bid from the parent company of Circle K.”
December 1, 2024
Sukhi Sandhu, NCASEF Chairman
Our stores are an extension of our hard work and determination as franchisees. Every detail matters, and when things go wrong—a distributor failing to deliver, a Help Desk call leaving us without satisfactory answers or taking too long to resolve , or a maintenance technician arriving without the needed parts—it’s easy to let emotions take over. But as passionate as we are about our businesses, professionalism must always guide our actions. Frustration, while understandable, rarely leads to the results we’re seeking. A calm, measured approach can make all the difference in resolving issues effectively while maintaining the relationships that are so crucial to our success.
Professionalism is essential in every aspect of what we do, and it starts with us as franchisees. When challenges arise, it’s tempting to let the stress of the moment dictate our response, but taking a step back and focusing on solutions instead of problems can help turn the situation around. For example, a driver who arrives late or with a shorted delivery may be more accommodating to your requests in the future or more willing to take your issue upstream to their management if you engage with them professionally rather than emotionally. A service technician who is approached with patience and understanding is more likely to go the extra mile to ensure the repair is done to the highest standards. These outcomes don’t happen by accident—they’re the result of maintaining professionalism and respect in the face of frustration.
Our professionalism trickles down to our store managers and employees, shaping the overall culture of the store. When store managers consistently act professionally and respectfully toward everyone they interact with, they set the tone that their teams are likely to follow. A store manager who engages an Area Leader or Market Leader respectfully, even when receiving feedback, sends a powerful message: professionalism should be practiced always, and it matters regardless of rank or position.
Employees benefit when they see professionalism upheld as a standard in their workplace. Store staff who are treated with respect and courtesy by franchisees and managers are more likely to adopt a similar approach in their dealings with others. For instance, employees engaging with customers will understand that professionalism yields loyalty and repeat visits, and strengthens customer relationships.
Vendors dedicate significant time and effort to participate in our local and national events, with the expectation of building meaningful relationships with franchisees. It’s our responsibility to engage actively with our supply partners and show our support for them by placing orders at our trade shows or by helping them get their new hot products into our stores. Vendors need to see that their investment in our community is worthwhile. Vendors who feel respected and appreciated are far more likely to work with us to create opportunities that benefit everyone. Similarly, vendors should also conduct themselves professionally in their interactions with franchisees and store staff. Whether at trade shows, during store visits, or when attending FOA meetings, their demeanor should reflect mutual respect and a shared commitment to building a positive partnership.
Professionalism is equally important when it comes to interactions with our franchisor’s personnel. We all have concerns, and there are times when policies or decisions from SEI seem to clash with what we know is in the best interest of our stores. It’s natural to feel frustrated, but emotional reactions rarely lead to progress. When conversations reach a negative tone, not only does the dialogue break down, but also the support and mutual respect that are so necessary for productive relationships.
SEI management and staff, like franchisees, should prioritize professionalism in their interactions with us and our teams. Whether they’re visiting our stores or meeting with franchisee leadership, their approach should mirror the courtesy and professionalism they expect in return. Speaking respectfully, staying calm, and focusing on solutions from both sides ensures that concerns are heard and addressed constructively. When all parties uphold professionalism, we pave the way for collaboration, problem-solving, and progress.
Very little gets accomplished through anger. Being firm but courteous allows us to address the tough issues head-on while leaving room for collaboration. Even when it feels like we’re not being heard, professionalism reminds us to stay focused on the bigger picture. The goal isn’t to “win” an argument or prove a point—it’s to make meaningful progress that benefits all 7-Eleven stakeholders.
Our business relationships are just that—business. This doesn’t mean we shouldn’t care deeply about our stores or our brand, but we should always strive to maintain professionalism in all our interactions. This mindset helps us navigate challenges more effectively and becomes a guideline for long-term success. To paraphrase the famous line from The Godfather, “It’s a business, not personal.”
QUOTE 1
“A calm, measured approach can make all the difference in resolving issues effectively while maintaining the relationships that are so crucial to our success.”
QUOTE 2
“Our professionalism trickles down to our store managers and employees, shaping the overall culture of the store.”
QUOTE 3
“Vendors who feel respected and appreciated are far more likely to work with us to create opportunities that benefit everyone.”
QUOTE 4
“Being firm but courteous allows us to address the tough issues head-on while leaving room for collaboration.”
December 1, 2024
Teeto Shirajee, NCASEF Vice Chair
Running a 7-Eleven store has its challenges, especially when retail sales start to dip. In fact, we’re all feeling the pinch of changing customer habits, rising costs, and a fiercely competitive market. In moments like these, leadership makes all the difference. But not the type of leadership that revolves around barking orders at your employees. I’m referring to servant leadership—the kind that lifts up the entire team and steers your store toward success.
Servant leadership flips the traditional leadership model on its head. Instead of leading from the top down, it’s about putting your people first—focusing on their needs, empowering them, and creating an environment where they can thrive. In a retail setting, and especially within our stores, this approach can spark the changes we need to overcome hurdles and find success again.
Here are some reasons why franchisees should embrace servant leadership during challenging times:
Employee Engagement and Motivation: When sales are down, employees can feel overwhelmed, demotivated, and uncertain about the future. Servant leaders prioritize the well-being of their employees, actively listen to their concerns, and provide support and guidance to help them stay engaged and motivated. By creating a positive work environment and showing genuine care for their team members, servant leaders can boost morale and productivity, leading to improved customer service and, ultimately, increased sales.
Empowerment and Collaboration: Servant leaders empower their employees by delegating authority, encouraging autonomy, and involving them in decision-making. In retail sales struggles, this approach can efficiently foster a sense of ownership and accountability among staff members. By collaborating with employees to identify issues, brainstorm solutions, and implement changes, servant leaders can harness their teams’ collective knowledge and skills to address sales challenges effectively.
Customer Focus and Service Excellence: Customer satisfaction is key to driving sales and building loyalty in our business. Servant leaders prioritize customers’ needs and instill a customer-eccentric mindset within their teams. By emphasizing the importance of providing exceptional service, building relationships with customers, and exceeding their expectations, franchisees embracing servant leadership can create a competitive advantage for their stores, even in the face of sales struggles.
Continuous Learning and Improvement: Servant leaders are committed to continuous learning, personal growth, and professional development. In the context of retail sales struggles, this mindset is essential for adapting to changing market conditions, identifying new opportunities, and improving existing practices. For 7-Eleven stores, where customer preferences and retail trends evolve rapidly, a servant leader’s dedication to growth means they stay attuned to market shifts, emerging customer needs, and innovative ways to enhance service. By adopting a learning culture within the team, servant leaders encourage employees to develop new skills, embrace feedback, and contribute ideas that may help improve store performance. This openness to learning can lead to actionable insights that address specific sales challenges and keep 7-Eleven competitive.
Building Trust and Loyalty: Servant leadership builds a foundation of trust and loyalty both within the team and with customers. When employees feel genuinely supported and valued, they’re more likely to be loyal, productive, and willing to go the extra mile for the business. This loyalty extends to customers as well; employees who are treated with respect and care tend to provide better service, creating positive customer experiences that lead to repeat business. In a tough sales environment, customer retention is critical, and the trust fostered by servant leadership can strengthen customer relationships and encourage long-term loyalty.
Resilience in the Face of Challenges: Finally, servant leadership cultivates resilience, an invaluable quality in times of hardship. Retail sales struggles can be discouraging, but servant leaders model perseverance, demonstrating how to face challenges with patience, optimism, and a focus on solutions. This resilience can be contagious, helping employees stay motivated even when immediate results are hard to see. By creating a supportive, united team with a shared purpose, servant leaders equip their stores to weather difficulties, bounce back from setbacks, and ultimately achieve sustainable success.
Servant leadership isn’t about grand gestures—it’s about the small, everyday actions that create a culture of care and collaboration. As 7-Eleven franchisees, embracing this approach doesn’t just help us get through tough sales period, it strengthens the foundation of our business. Together, by prioritizing our people, our customers, and our shared growth, we can rise above the challenges and come out stronger.
Contact Info
Teeto Shirajee can be reached at
954-242-8595 or teeto.shirajee@yahoo.com
QUOTE 1
“I’m referring to servant leadership—the kind that lifts up the entire team and steers your store toward success.”
QUOTE 2
“Servant leaders prioritize the well-being of their employees, actively listen to their concerns, and provide support and guidance to help them stay engaged and motivated.”
QUOTE 3
“As 7-Eleven franchisees, embracing this approach doesn’t just help us get through tough sales period, it strengthens the foundation of our business.”
October 1, 2024
By Teeto Shirajee, NCASEF Vice Chair
Election years can significantly impact various sectors of the economy, including the retail industry and our 7-Eleven stores. The uncertainty surrounding elections often brings shifts in consumer behavior, market conditions, and policy changes, all of which can influence our store operations. Here are some ways election years impact the retail sector, along with some strategies to navigate these challenges.
Consumer Spending Patterns
During election seasons, consumers often become more cautious with their spending as they wait to see how potential changes in economic policies and leadership might affect their personal finances. This caution can lead to a dip in sales, especially for non-essential items. For 7-Eleven stores, this might translate to slower sales in categories like snacks and beverages as customers tighten their budgets.
Political Uncertainty
The political climate during election years can be a wild card for retailers like us. Proposed changes in regulations, tax policies, or trade agreements by different candidates can directly affect 7-Eleven stores. We may need to brace ourselves for potential shifts that could impact labor costs, product pricing, or supply chain dynamics, requiring us to adapt quickly to safeguard our margins.
Market Volatility
Election years often come with market volatility that can impact both consumer sentiment and retail performance. Stock market fluctuations and shifts in investor confidence can trickle down to affect our customer base. We need to be prepared for these economic tremors, which can influence spending habits and, ultimately, sales.
Marketing and Advertising Challenges
Election campaigns often dominate the media landscape, making it harder for retailers to capture consumer attention. For 7-Eleven franchisees, this means finding creative ways to break through the noise. Traditional advertising channels may become crowded with political messaging, requiring us to think outside the box to keep our marketing efforts effective and relevant.
Strategies we can follow to navigate election year challenges include:
- Monitor and Analyze Consumer Trends: We should keep a close eye on consumer behavior during election years. By tracking changes in spending patterns, we can adjust our inventory and marketing strategies to focus on products that continue to resonate with customers despite economic uncertainty.
- Diversify Product Offerings: To offset potential slowdowns in certain product categories, we can diversify our inventory. Introducing new products or services that cater to a broader range of consumer needs can help maintain steady sales and attract a wider customer base.
- Stay Agile and Flexible: Agility is key during uncertain times. We should be ready to modify our strategies, whether it’s adjusting inventory levels, rethinking promotional campaigns, or tweaking pricing strategies to stay competitive.
- Engage with Customers: Building strong relationships with customers could lead to loyalty, making them more likely to choose 7-Eleven over other options during uncertain periods. Personalized service, community engagement, and targeted promotions can help us build a loyal customer base that continues to support our stores.
Election years can be a challenging period for 7-Eleven franchisees, but with the right strategies, we can turn uncertainty into opportunity. By staying attuned to market shifts, diversifying product offerings, and maintaining a flexible approach, we can navigate these turbulent times and emerge stronger. Most importantly, by focusing on building solid relationships with customers and the community, 7-Eleven stores can secure their place as a go-to destination regardless of the political climate.
