Using Every Tool To Boost Our Bottom Lines
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.