7-Eleven Is Reinventing Its $17B Food Business to Be More Japanese [video]

7-11 in Japan is a way of life.

I've been to an American 7-11 once or twice in my life. (I didn't want to go back.)

In Japan, I went at least once daily - sometimes twice per day. They almost function the role of a NYC bodega, but with more and fresher food options. In addition, they often have a stack of microwaves run by the staff, allowing for inexpensive, fresh, and warm meals.

What was more surprising to me is the realization by corporate that 40% of the in-store SKUs in their US stores (in a given location) only sold through 1 or fewer units per month. That means if a franchise store got shipped a box of 12 units of a SKU, it might take a year or more to sell that box through.

What kills me is they're possibly just realizing this in 2024. What on earth has the corporate analytics team been doing all this time to not make that sort of opportunity cost screamingly obvious? Even if the margin is good, you're moving no volume.

I realize that it's probably cleaning products and other shelf stable items, but that just blew my mind.

Interesting. 7-11 is one of the example's in Rumelt's book on strategies[1]. In the chapter on 'pivot points' (by his definition, areas where effort yields significant reward) he outlines that 7-11 focuses on different things in Japan vs China. In Japan, they believe that the customer is easily bored and requires their stores to stock many choices, and carefully track which are rising and falling in popularity in each area, to avoid them seeking out novelty at competing stores. In China, they focus on attracting customers by having Japanese-style "spotless interiors and white-gloved service", a much more pleasant experience that traditionally found in stores in China.

I was wondering what this said about the US customer. But it sounds like the US operation was just not as well run and needs to catch up.

[1] Good strategy, Bad Strategy, 2012

A friend from Japan said 7-11 was an upscale store there. It features the top products in every category, and is maintained in an organized and clean japanese way.

Indirectly related: before visiting Thailand I heard that 7-Elevens were everywhere (they were) and a core part of daily life for locals and tourists alike. I expected them to be more like the Japanese model, but was surprised that they all had a very limited number of salty snacks, energy drinks, and toiletries - similar to the US.

Other than a nice selection of tourist-friendly pre-paid mobile plans, I couldn't really understand (or validate) the "important" role they played.

Anyone have a perspective on this?

711 food in the US is sugar saturated to a comical degree. This store will hurt you. I think there are grounds for class action. That's what happens when you track and then promote the most addictive products of the company inventory

The video mentions at least twice that gas is one of the two main revenue sources of 7-11 in USA.

A: How common is this? 7-11s don't serve gas where I've seen. B: Is this accurate re profits? My understanding was that gas stations make their money from the convenience store vice fuel. (This is in direct contradiction)

Unrelated: Is it normal in marketing to refer to customers as "targets"? (See around 75% through the video for one example)

There's actually a cool 200 page manga about 7-Eleven entering the Japanese market and experimenting to make it work. It's called "Project X: Challengers - Seven Eleven" https://www.amazon.ca/Project-X-Challengers-Seven-Eleven/dp/...

I am so here for bringing konbini life to the U.S.

7-11 spam musabi is amazing if you’re ever on one of the Hawaiian islands

it's kind of disappointing that they're focusing on food in this. I get that it's a quarter of their revenue, but one of the things that makes japanese convenience stores so convenient is that you can do more than just buy stuff. like, they often have printers and scanners if you need to make a copy of something or print something off. or if you're a tourist and you're taking the train someplace and have too much luggage, you can get it shipped to the hotel at your destination via 7/11. that's the kind of thing I would love to see in a convenience store.

7-11 (the corporation) is owned by one of its own Japanese franchisees, Seven & I Holdings.

https://en.wikipedia.org/wiki/7-Eleven

7-11 JP is so good the food is 90% there compared to restaurants and the desserts legit beat some Michelin star stuff. They deliver fresh daily and some desserts can't even make it overnight without coagulating!

I wish all 7-eleven stores worldwide were like the Japanese ones. The stores in Asia generally are okay, like same concept as the Japanese ones, just varying degrees of less good.

The stores in the US and Canada are just useless. Terrible. I don't know why, given the Japanese parent owns them all and I've never met anyone who has visited a Japanese store who prefers the American format.

I spent so much time on an imageboard called 711chan, as a teen. It's actually still around: 711chan.wtf.

Wanting to contribute to leh /i/nsurgency nonsense was kind of how I got into programming. Not related to TFA, but that's what it made me remember.

Have warm memory of 7-11 in Japan. Basically they had only cash machine that I could use to withdraw some money as all other in the area refused my cards. Sort of saved my life in a way.

If people didn't know, 7-11 is owned by a Japanese company.

This made me curious how much smokeless tobacco products like vapes and Zyn offset the losses they talked about in combustible tobacco products.

The narrator’s vocal fry was so excruciating I couldn’t get through the video.

Please bring the salmon jerky.

As we all know, “gas station sushi” enjoys a special place of trust in American culture.