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Fueling Up is a column from C-Store Dive offering a fresh perspective on the top news and trends in the convenience store industry.
7-Eleven is on a growth path that, quite frankly, I don’t understand.
The retailer has spent the past year and a half opening its “new standard” food-focused c-stores at a rapid clip, and recently revealed plans to remodel 7,000 existing locations to this format by 2030.
Simultaneously, it wants to convert thousands of company-operated sites to franchised locations, as well as move hundreds more company-operated stores to wholesale dealer sites.
Ramping up franchising and wholesale sites seems like a strategy that’s at odds with building a higher-quality foodservice operation, since those locations are often not as sophisticated from a food perspective as company-operated stores.
On top of that, 7-Eleven got rid of its top merchandising decision makers amid its recent company-wide reorganization — another contradiction to its plan to become a food destination.
It’s clear that 7-Eleven is trying to pursue two competing objectives at once: building a more foodservice-focused business while shifting toward a lower-cost, lower-control operating structure through franchising and wholesale conversions.
Both strategies may improve profitability in different ways, but they don’t necessarily reinforce each other.
During 7-Eleven’s investor presentations last month, executives said they fully expect its new franchising and wholesale efforts to help improve profitability even as 7-Eleven pursues foodservice excellence.
But it’s hard to see how those goals can work together.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | ▲ +0.34% |
| WTI Crude | $96.90/bbl | ▲ +0.21% |
| EN590 Diesel | $846/MT | ▲ +0.18% |
| Jet Fuel A-1 | $1090/MT | ▲ +0.55% |
| Mazut M100 | $450/MT | ▼ -0.15% |
| Bitumen 60/70 | $470/MT | ▲ +0.08% |
| Sulphur Gran 99.5% | $470/MT | ▼ -0.44% |
| Urea 46% Gran | $650/MT | ▲ +1.12% |
| NPK 16-16-16 | $460/MT | ▼ -0.28% |
| Nat Gas TTF | $15.42/MMBtu | ▲ +0.92% |
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