From Wikipedia, the free encyclopedia - View original article
|Industry||Retail (convenience stores)|
|Number of locations||53,000|
|Key people||Joseph DePinto, CEO|
Big Gulp beverage Cup
Other products include: coffee, sandwiches, prepared foods, gasoline, dairy products, various beverages
|Revenue||$84.8 billion (Estimated) (2009)|
|Employees||45,000 (2010 NA)|
|Parent||Seven & I Holdings Co. Ltd.|
|This article needs additional citations for verification. (November 2013)|
|Industry||Retail (convenience stores)|
|Number of locations||53,000|
|Key people||Joseph DePinto, CEO|
Big Gulp beverage Cup
Other products include: coffee, sandwiches, prepared foods, gasoline, dairy products, various beverages
|Revenue||$84.8 billion (Estimated) (2009)|
|Employees||45,000 (2010 NA)|
|Parent||Seven & I Holdings Co. Ltd.|
7-Eleven or 7-11 is part of an international chain of convenience stores. 7-Eleven, primarily operating as a franchise, is the world's largest operator, franchisor, and licensor of convenience stores with more than 50,000 outlets. This number surpassed the previous record-holder, McDonald's Corporation, in 2007, by approximately 1,000 retail stores. 7-Eleven branded stores under parent company Seven & I Holdings Co., are in 15 countries with its largest markets being Japan (16,664), the United States (7,800), Thailand (7,816), Republic of Korea (7,055), and Taiwan (5,001).
7-Eleven, Inc. is headquartered in Dallas, Texas, while its globally operating parent company, Seven-Eleven Japan Co., Ltd., is headquartered in Tokyo, Japan. In turn, the holding company of Seven-Eleven Japan is Seven & I Holdings Co. Ltd.
The company's first convenience outlets were known as Tote'm Stores, since customers "toted" away their purchases, and some even sported genuine Alaskan totem poles in front. In 1946, the name Tote'm was changed to 7-Eleven to reflect the stores' new, extended hours—7 am until 11 pm, seven days a week. The company's corporate name was changed from "The Southland Corporation" to 7-Eleven, Inc. in 1999.
The company originated in 1927 in Dallas, Texas, when an employee of Southland Ice Company, John Jefferson Green, started selling milk, eggs, and bread from an improvised storefront in one of the company's ice houses. Although small grocery stores and general merchandisers were present in the immediate area, Joe C. 'Jodie' Thompson, Sr., the manager of the ice plant, discovered selling convenience items, such as bread and milk, was popular due to the ice's ability to preserve the items. This significantly cut back on the need to travel long distances to the grocery stores for basic items. Thompson eventually bought the Southland Ice Company and turned it into Southland Corporation, which oversaw several locations which opened in the Dallas area.
In 1928, one of the managers brought back a totem pole from Alaska and placed it in front of his store. Due to the attention received by the totem pole, additional totem poles were placed at each of the store locations and all of the stores began operating under the name "Tote'm Stores" (a word play on the totem poles as well as the idea that customers "toted" or carried away their purchases). In that same year, many locations also began selling gasoline. Although the Great Depression caused the company to go bankrupt in 1931, it still managed to continue operations.
In 1946, in an effort to continue the company's post war recovery, the name of the stores was changed to 7-Eleven to reflect their hours of operation—7 a.m. to 11 p.m., which at the time was unprecedented. By 1952, 7-Eleven opened its 100th store. It was incorporated as Southland Corporation in 1961. In 1962, 7-Eleven first experimented with a 24-hour schedule in Austin, Texas after an Austin store was forced to remain open all night due to customer demand. By 1963, 24-hour stores were established in Fort Worth and Dallas, Texas as well as Las Vegas, Nevada.
The Southland Corporation in the late 1980s was threatened by a corporate takeover, prompting the Thompson family to take steps to take the company private by buying out public shareholders in a tender offer. In 1987, John Philp Thompson, the Chairman and CEO of 7-Eleven, completed a $5.2 billion management buyout of the company his father had founded. The buyout suffered from the 1987 stock market crash, and after failing initially to raise high yield debt financing, the company was required to offer a portion of the company's stock as an inducement to invest in the company's bonds.
Operating in this period with exceptionally high interest costs, the Company, now private, encountered financial difficulties with the high debt load, and as part of the re-structuring, sold various divisions, such as ice division and Chief Auto Parts - an auto parts franchise, which was acquired by Southland in 1979 to provide the convenience of a 7-Eleven store, was divested in 1990 to General Electric and later purchased by AutoZone. In 1998, the company was rescued in bankruptcy by the Japanese corporation Ito-Yokado, its largest franchisee. This downsizing also resulted in numerous metropolitan areas losing 7-Eleven stores to rival convenience store operators.
The Japanese company gained a controlling share of 7-Eleven in 1991, during the Japanese asset bubble of the early 1990s. Ito-Yokado formed Seven & I Holdings Co., and 7-Eleven became its subsidiary in 2005. In 2007, Seven & I Holdings announced that it would be expanding their American operations, with an additional 1,000 7-Eleven stores in the United States. Seven & I was the fifth largest retailer in the world in 2013, with 35,000 stores in approximately 100 countries.
Among 7-Eleven's offerings are private label products, including Slurpee, a partially frozen soft drink introduced in 1967, and the Big Gulp introduced in 1980 that packaged soft drinks in large cups ranging in size from 20 to 64 U.S. fluid ounces (0.59 to 1.89 liters).
In addition to Slurpee and the Big Gulp, 7-Eleven would come to own or operate several brands of food and concepts, including Movie Quik, an in-store video-rental service; Citgo, the gas brand sold at many locations up until 2006, as well as Chief Auto Parts (1979–1990, later sold to AutoZone), which had locations adjacent to or near several 7-Eleven locations. They bought White Hen Inc. on August 10, 2006, mostly in or around the Chicago, Illinois area, and plan to convert all of the remaining White Hens to 7-Eleven stores.
Since 2005, the company has offered 7-Eleven Speak Out Wireless, a prepaid phone service where a cellphone can be purchased directly from a 7-Eleven store in the United States or Canada and activated on the spot.
The first 7-Eleven in Australia opened on August 24, 1977 in the Melbourne suburb of Oakleigh. There are currently over 600 stores in Australia, with 240+ in the state of Victoria, 210+ in New South Wales, and 130+ in Queensland, and recently in Western Australia the majority of stores are in metropolitan areas, particularly in central business district areas. Stores in suburban areas often operate as petrol stations. Stores are owned and operated as franchises, with a central administration.
7-Eleven stores sell gift cards including three types of prepaid VISA cards. There are daily newspapers, drinks, confectionery, and snack foods. They sell pre-prepared food such as sandwiches, wraps, pies, and sausage rolls under their proprietary brand 'munch' delivered fresh into stores daily.
7-Eleven stores have partnered with BankWest and have BankWest ATMs in all of their stores.
In March 2010, the company ran a promotion where every customer purchasing fuel received a free small Slurpee.
7-Eleven has acquired 295 Mobil service stations in New South Wales, Queensland, South Australia, and Victoria that were originally planned for sale to Caltex. Twenty-nine sites in South Australia were subsequently on sold to Peregrine Corporation, to be badged as On the Run convenience stores.
In April 2014, 7-Eleven revealed plans to start operating stores in Western Australia, with 11 store planned within the first year, and 75 within five years.
7-Eleven opened its first store in Guangdong Province in China in 1992, and later expanded to Beijing in 2004, Chengdu and Shanghai in 2011, and Qingdao in 2012，and Chongqing in 2013. 7-Eleven stores in China generally offer little or no brand name items such Slurpee. Where Slurpees are offered, they use the Chinese name 思乐冰 (sīlèbīng). However, they offer a wide array of warm food, including traditional items like the steamed, filled bun. Shops in Chengdu offer a full variety of onigiri (饭团), though those in other cities may not. Also sold are some beverages, alcohol, candy, periodicals, and other convenience items. As of 2013[update], there are 970 7-Eleven stores in mainland China. Although Beijing locations were originally planned to be open "from 7:00 am until 11:00 pm, to suit the lifestyle of Beijingers", the majority are open 24 hours every day.
7-Eleven, nicknamed "Little 7" (Chat Jai) by the locals, has operated in Hong Kong since 1981 under the ownership of Dairy Farm. With most locations being in urbanized areas, approximately 40 percent are franchised stores. In September 2004, Dairy Farm acquired Daily Stop, a convenience store chain located mainly in the territory's MTR stations, and converted them to 7-Eleven stores. As of 2009[update], Hong Kong has 950 7-Eleven stores and has the second-highest density of 7-Eleven stores after Macau, with 1 shop per 1.16 square kilometres (0.45 sq mi).
In April 1991, 7-Eleven announced plans to expand its business in Indonesia through a master franchise agreement with Modern Putra Indonesia (a subsidiary of Modern Group, FujiFilm distributor in Indonesia) of Jakarta. Modern Putra Indonesia's initial plans are to focus on opening stores in Jakarta, targeting densely populated commercial and office areas, to offer working Indonesians a convenient place to shop for lunch, snacks, and emergency items. Other major cities, such as Bandung, Semarang, and Surabaya, offer future expansion opportunities. There are 128 7-Eleven stores in Indonesia as of 2013[update]. 7-Eleven stores in Indonesia have released "Ice Radio Mix" in cooperation with MNC Radio Networks (Global ARH Radio, Sindo Trijaya FM, V Radio, and Radio Dangdut Indonesia), which is owned by Hary Tanoesoedibjo. Tanoesoedibjo announced that PT Global Mediacom Tbk would acquire 75% of the stakes of 7-Eleven Indonesia after launching "Ice Radio Mix" in 2013 with MNC Radio Networks.
The Indonesian government stated in May 2010 that they will monitor 7-Eleven expansion since 7-Eleven is licensed as a convenience store not as a mini market. Indonesian law limits mini market ownership to local companies.
Japan has more 7-Eleven locations than anywhere else in the world, where they often bear the title of its current holding company "Seven & I Holdings". Of the 50,254 stores around the globe, 15,852 stores (30% of global stores) are located in Japan with 2,079 stores in Tokyo alone.
The feel and look of the store is somewhat different from that of 7-Elevens in the United States. In Japan, they offer a wider selection of products and services. Japanese 7-Elevens offer not only food, drinks, and magazines, but also video games and consoles, music CDs, DVDs, digital cardreaders as well as seasonal items like Christmas cakes, Valentine's Day chocolates, and fireworks. Slurpees and Big Gulp super size soft drinks were introduced in the early 1980s but discontinued some years later. Slurpees, however, returned to Japan at some 7-Eleven locations in 2011, although the Japanese Slurpee machines are meant to be operated differently from other Slurpee machines.
Like some other convenience stores in Japan, Seven-Eleven has solar panels and LEDs installed on about 1,400 of its stores, making it the chain with the most as of mid-2012.
Malaysian 7-Elevens are owned by 7-Eleven Malaysia Sdn. Bhd. which now operates 1,472 stores nationwide (as of October 2013). 7-Eleven in Malaysia was incorporated on June 4, 1984 by the Berjaya Group Berhad. The first 7-Eleven store in Malaysia was opened in October 1984, in Jalan Bukit Bintang, Kuala Lumpur. In October 2008, 7-Eleven achieved a milestone opening of its 1,000th store in Bandar Sunway, Selangor. It is today the market leader in the convenience store chain landscape in Malaysia.
7-Eleven entered the Macau market in 2005 under the ownership of Dairy Farm, the same conglomeration group operating Hong Kong's 7-Eleven. With only 29.5 square kilometres (11.4 sq mi), Macau has 45 stores, making it a single market that has the highest density of 7-Eleven stores, with one store per 0.65 square kilometres (0.25 sq mi).
In the Philippines, 7-Eleven is run by the Philippine Seven Corporation (PSC), founded by former Senator Vicente Paterno, Jose Pardo, and Francisco Sibal. Its first store, located at Quezon City, opened in 1984. In 2000, President Chain Store Corporation (PCSC) of Taiwan, also a licensee of 7-Eleven, bought the majority shares of PSC and thus formed a strategic alliance for the convenience store industry within the area.
On May 19, 1989, PSC's sister company, Philippine Seven Properties Corporation (PSPC), was registered with the Securities and Exchange Commission (SEC). PSPC undermined the difficulties posed by the Philippine Constitution, and made it easier for PSC to raise money through the acceptance of foreign and corporate investments. PSPC was able to successfully generate additional funds, which were used by PSC in the construction of six stores in 1988 and five stores in 1989. As of April there are now over 1,000 7-Eleven stores in the Philippines.
In Singapore, 7-Eleven forms the largest chain of convenience stores island-wide. There are at present 560 7-Eleven stores scattered throughout the country. Stores in Singapore are operated by Dairy Farm International Holdings, franchised under a licensing agreement with 7-Eleven Incorporated, headquartered in Dallas, Texas, in the United States.
The first 7-Eleven stores were opened in 1983 with a franchise license under the Jardine Matheson Group. The license was then acquired by Cold Storage Singapore, a subsidiary of the Dairy Farm Group, in 1989. At present, 7-Eleven plans to expand its base to include 300 stores, within the next few years. In 2006, 7-Eleven (Singapore) signed an agreement with Shell Singapore to operate its "Shell Select" convenience stores in all its petrol stations island-wide. In September 2007, the change-over of Shell Select stores to 7-Eleven were fully completed.
7-Eleven stores in Singapore operate around the clock, except for stores in Biopolis, hospitals, MRT Stations, some shopping centres, Raffles Institution (Junior College), ITE College West, Singapore Polytechnic, Republic Polytechnic, and Nanyang Technological University, which have shorter operating hours. Slurpees and Big Gulp super size soft drinks are available at most 7-Eleven stores in Singapore, although a small minority of stores do not sell Slurpees and Big Gulp due to space constraints.
7-Eleven has a major presence in the South Korean convenience store market where it competes with Ministop, GS25 (formerly LG25), FamilyMart, and independent competitors. There are 7,064 7-Eleven stores in South Korea, with only Japan, the United States, and Thailand hosting more stores. The first 7-Eleven store in South Korea opened in 1989 in Songpa-gu in Seoul with a franchise license under the Lotte Group. In January 2010 Lotte Group acquired the Buy the Way convenience store chain and rebranded its 1,000 stores under the 7-Eleven brand. Branded products such as Slurpee or Big Gulp are no longer carried in South Korean stores.
In Taiwan, 7-Eleven is the largest and most popular convenience store chain, and is owned by President Chain Store Corporation under Uni-President Enterprises Corporation. The first store opened in 1979 and the 5,000th store was opened in July 2014. Taiwan has the world's fifth-largest number of 7-Eleven convenience stores after Japan, the United States, Thailand and South Korea.
First opened in 1989 on Patpong Road, Bangkok. The franchise in Thailand is the CP ALL Public Company Limited, which in turn grants franchises to operators. There are 7,816 7-Eleven stores in Thailand as of 2013[update], half of which are in Bangkok. Thailand has the 3rd largest number of 7-Eleven stores after Japan and the United States.
The company plans spending 5 billion baht to expand its business. 2 billion will be used to open 500 new outlets, one billion to renovate existing stores, and the rest to develop a new distribution centre in the East.
Seven & I Holdings announced in June 2014 that had struck a contract with Seven Emirates Investment LLC to open the first Middle Eastern 7-Eleven in Dubai, United Arab Emirates during the summer of 2015. The company also said that they had plans to open about 100 stores in the country by the end of 2017.
The owner of the master franchise for 7-Eleven in Scandinavia is Reitan Servicehandel, a part of the Norwegian retail group Reitan Group. All stores are franchised, and 7-Eleven often tries to place the stores on corners in city centers. After Reitangruppen bought the filling station chain HydroTexaco (now YX Energy) in Norway and Sweden in 2006 it announced that several of the stores at the filling stations would be rebranded 7-Eleven and the petrol would be supplied by Shell, while others will remain under the YX brand.
The first 7-Eleven store in Denmark was opened at Østerbro in Copenhagen on September 14, 1993. As of 2013[update], there are 196 stores, mostly in Copenhagen, Aarhus, Aalborg, and Odense, including 8 stores at Copenhagen Central Station. In Denmark, 7-Eleven has an agreement with Shell, with a nationwide network of Shell/7-Eleven service stations, and an agreement with DSB to have 7-Eleven stores at most S-train stations.
The first 7-Eleven store in Norway was opened at Grünerløkka in Oslo on September 13, 1986. As of January 2012, there are 162 7-Eleven stores in Norway, more than half of these in Oslo. Norway has the northernmost 7-Eleven in the world, situated in Tromsø. On a per-capita basis, Norway has one 7–Eleven store for every 47,000 Norwegians, compared to Canada, which has one for every 74,000 Canadians.
The first European location of 7-Eleven was in Sweden; the first 7-Eleven store in Sweden was opened on Tomtebogatan in Stockholm in 1978. Reitan Servicehandel Sverige has had the license in Sweden since December 1997. In the mid-1990s, 7-Eleven in Sweden received adverse publicity due to the unfavourable labour contracts offered by its then-licensee Small Shops, an American-based company, resulting in many stores being sold and closed down. For a time there were only 7-Elevens in Stockholm and Gothenburg. 7-Eleven returned to the south of Sweden in 2001 when a convenience store opened in Lund. Later in the 2000s the Swedish 7-Eleven chain was embroiled in controversy when the Swedish TV channel TV3 exposed widespread fraud on the part of Reitan Servicehandel in its management of the 7-Eleven franchise, which Reitan Servicehandel eventually admitted to on its website. As of 2013[update], there are 189 7-Elevens in Sweden: most of them in Stockholm, 19 in Gothenburg, 15 in southern Sweden (three in Jönköping, three in Lund, four in Helsingborg, four in Malmö, and one located at Malmö-Sturup Airport). After an agreement with Shell on August 27, 2007, 112 Shell Select outlets were re-branded as 7-Eleven by April 2009.
The first 7-Eleven store to open in Canada was in Calgary, Alberta on June 29, 1969. There are 484 7-Eleven stores in Canada as of 2013[update]. Winnipeg, Manitoba has the world's largest number of Slurpee consumers, with an estimated 1,500,000 slurpees sold since the first 7-Eleven opened on March 21, 1970. All 7-Eleven locations in Canada are corporate operated.
A limited number of 7-Eleven locations feature gas stations from Shell Canada, Petro-Canada, or Esso. In November 2005, 7-Eleven started offering the Speak Out Wireless cellphone service in Canada, however, multiple sources claim this Wireless service to end in Summer/Fall 2014 due to provider issues. 7-Eleven locations also featured CIBC ATMs—in June 2012, these machines were replaced with ATMs operated by Scotiabank. 7-Eleven abandoned the Ottawa, Ontario market in December 2009 after selling all its six outlets to Quickie Convenience Stores, a regional chain. Following concerns over the fate of Speak Out Wireless customers, Quickie offered to assume existing SpeakOut customers and phones into its Good2Go cellphone program. 7-Eleven is similarly absent from the Quebec market due to its saturation by chains like Alimentation Couche-Tard, Boni-soir as well as independent dépanneurs.
In Mexico the first 7-Eleven store opened in 1971 in Monterrey, Nuevo León in association with Grupo Chapa (now Iconn) and 7-Eleven, Inc. under the name Super 7. In 1995, Super 7 was renamed to 7-Eleven, which has 1,552 stores in several areas of the country as of 2013[update]. When stores are located within classic buildings (such as in Centro Histórico buildings) or important landmarks, the storefront logo is displayed in monochrome (usually gold or silver lettering). Main competitors in Mexico are OXXO (Femsa), Super City (Soriana), Farmacias Guadalajara, and other local competitors. Slurpees are available at some but not all Mexican 7-Eleven stores. In some locations, a Slurpee-like beverage called Frözt is available.
Supermarket News ranked 7-Eleven's North American operations No. 11 in the 2007 "Top 75 North American Food Retailers," based on 2006 fiscal year estimated sales of US$15.0 billion. Based on 2005 revenue, 7-Eleven is the twenty-fourth largest retailer in the United States. As of 2013[update], 8,144 7-Eleven franchised units exist across the United States. Franchise fees range between US$10,000 - $1,000,000 and the ongoing royalty rate varies. 7-Eleven America has its headquarters in the One Arts Plaza building in Downtown Dallas, Texas.
In May 1998, an announcement stated that 113 7-Eleven stores would be sold and converted into Kum & Go stores. Around the late 80's, 7-Eleven exited the Minnesota market and sold most of its Minnesota stores to SuperAmerica and closed many, resulting in situations— especially in larger cities like Minneapolis and Saint Paul—whereby multiple SuperAmerica locations could be found on the same intersection. In states like Minnesota, Iowa, and Wisconsin, other convenience store, such as Holiday Station Stores, SuperAmerica, QuikTrip, Kwik Trip, and Casey's, may occupy the same market.
The only independently owned 7-Eleven stores are located in the Oklahoma City, Oklahoma metropolitan area. There were 113 stores prior to the devastating 2013 Moore tornado that struck Moore, leaving the company 111. These stores are owned by the family of William C. Brown (currently run by son Jim Brown), under a special arrangement with the company that has existed since 1953. William C. Brown's father, Bill Brown, was a business associate and family friend of John Thompson. Bill Brown had recently graduated from the University of Notre Dame and attempted to find an area "ripe" for the retail concept. During his travels, he met the Tulsa-based QuikTrip chain owner who suggested Oklahoma City to Brown. Narrowing down the choices, Bill Brown decided upon Oklahoma and opened the inaugural store at NW 23rd & N. Portland Avenue in Oklahoma City.
At inception, the Thompson family, separately from the Dallas-based corporation, was a part owner of the Oklahoma City 7-Eleven stores. Bill Brown would work a shift at the original store and would scout new locations to build outside of work time. The "Oh Thank Heaven for 7-Eleven" phrase was coined by the Stanford Agency, the in-house advertisement agency for 7-Eleven (1954–1981) in 1969. These stores continue to carry a slightly different product selection than other 7-Eleven stores in the US, as they do not serve hot dogs or nachos; instead, they sell baked goods from an Oklahoma City-based bakery that is owned by the Brown family called 7th Heaven. In late 2005, the bakery's daily sales output was reported as 20,000 units. Also, due to this agreement, they carry a non-7-Eleven branded product in lieu of the Slurpee, the Icy Drink, which is not to be confused with the ICEE. As part of the arrangement, national advertising campaigns and promotions (e.g. movie marketing tie-ins) cannot be used.
In the Pennsylvania market, 7-Eleven competes with Turkey Hill, from Lancaster; Wawa, from the Philadelphia area; Sheetz from Altoona; and Rutters from York. 7-Eleven has no presence in the Altoona–State College–Johnstown area because of Sheetz, but is predominant in the Pittsburgh region—where Sheetz also dominates—as well as South Central Pennsylvania, around the state capital of Harrisburg.
Between 1988 and 2012, 7-Eleven was absent in several cities in Texas (Houston (1988–2013), Galveston, Beaumont, Corpus Christi, San Antonio (1989–2012), and Brownsville (1988-2013)). In 1988 (1989 for its San Antonio locations except for the stores located in the Rio Grande Valley and Corpus Christi), the stores in these areas were sold to National Convenience Stores, which owns the Stop & Go franchise later acquired by Diamond Shamrock in November 1995,—part of Valero Energy Corporation since 2006—even though the US headquarters of 7-Eleven is based in Dallas, Texas. The Brownsville and Corpus Christi stores were sold to Circle K which were rebranded by Susser Holdings (which once ran 7-Eleven stores under license until the 1988 sale) in 2006 under the Stripes brand name. 7-Eleven stores are prevalent in the Dallas–Fort Worth Metroplex, Temple, Killeen, Fort Hood, and Austin; West Texas (Midland, Lubbock, El Paso)—the West Texas locations west of Interstate 35 are co-branded with Alon (formerly Fina) gas stations, part of Alon USA's retail business interests (7-Eleven stores with Alon gas stations are licensed franchises); and two individual franchises in Smithville and San Marcos, Texas.
As of December 2012, 7-Eleven returned to the Coastal Bend area of Texas, as the company acquired 143 Speedy Stop and Tigermarket locations from C.L. Thomas Petroleum. The locations were remodeled and rebranded, with the exception of a few locations in the Austin and the Houston Metro areas. As a result, former Exxon Tigermarket locations (61 total) in the Austin-Round Rock-San Marcos, TX metropolitan area once part of the C.L. Thomas business portfolio were rebranded as 7-Elevens.
In North Carolina, 7-Elevens were only seen in the northeastern part of the state, as part of the Hampton Roads market, between 1988 and 2012. In the rest of the state, there are several equivalents. 7-Eleven has little to no presence in the Albany, New York market due to the prominence of local chain Stewart's Shops. In 1987, Southland acquired High's Dairy Stores of Maryland, Virginia, and Washington, D.C. many of which were converted to 7-Elevens.
7-Eleven is moving toward franchising most of its remaining corporate locations inside the US. The 7-Eleven franchise system splits the gross profits in an arrangement that is around 50/50, between the company and the individual franchisee. The initial 7-Eleven franchise term is 15 years. The franchise fee and other upfront fees collected by 7-Eleven from a newly approved franchisee, in addition to ongoing 50:50 sharing of profits, is not transferable to another incoming franchisee in the same store, for the unexpired portion, if any, of the current 15 year contract. For example if one pays the full franchise fee for 15 years and leaves the store after one year for any reason, they stand to lose the franchise fee for the remaining 14 years of their term.
7-Eleven expanded their business interests with a 2011 partnership with Cinemark Theatres, whereby the Slurpee beverage was sold at Cinemark locations in Dallas and Houston, Texas and Portland, Oregon after July 2011. The Cinemark partnership is the first time that a 7-Eleven branded product has been sold outside its parent franchise.
On April 27, 2011, 7-Eleven signed an agreement to purchase Wilson Farms, a Buffalo, New York-based convenience store chain with 188 outlets in New York state. The addition of Wilson Farms significantly increased 7-Eleven’s presence in the western New York area; however, 30 of the acquired stores were sold in late 2012 as they did not fit 7-Eleven's operations at the time of sale.
In early 2012, 7-Eleven entered into an agreement with Sam's Mart convenience stores to purchase 55 stores in the Charlotte, North Carolina market for conversion to the 7-Eleven brand. This marked 7-Eleven's re-entry into the Charlotte market after a 14-year absence, as the corporation operated in the area between 1964 and 1988.
The corporation announced two major US acquisitions in June 2012. Firstly, it acquired 23 stores primarily operated under the Quix banner in north and central Texas, followed by the purchase of 18 Open Pantry stores in Wisconsin for conversion to the 7-Eleven brand.
In August 2012, 7-Eleven entered into an agreement with TETCO, Inc. to purchase all Tetco's stores that are company-operated in Utah and the Dallas-Fort Worth, Austin, and San Antonio areas. TETCO stores were remodeled and rebranded as 7-Eleven outlets following the closure of the transaction in November. The agreement marked 7-Eleven's first return to San Antonio since 1989. Some TETCO stores in the Austin, TX area were either converted to 7-Eleven along with the C.L. Thomas properties acquired whilst a few have had the TETCO signage removed - one TETCO location in Round Rock, TX adjacent to a 7-Eleven became part of CEFCO Convenience Stores. As of May 2014, 7-Eleven has been using the TETCO brand name with the Speedy Stops purchased from C.L. Thomas in cities which do not have 7-Eleven franchises - these rebadged Speedy Stops carrying TETCO signage has 7-Eleven merchandise except for the private label products - one of the stores located in Sugar Land has been selling Big Gulps and Slurpees while the other TETCO-branded locations do not.
7-Eleven celebrates its birthday in the US and Canada every year on July 11. Free samples are given out in 7.11 U.S. fluid ounces (210 ml) cups and patrons can choose any of the Slurpee flavors.
In June 2013, 15 stores were raided, most of which were in the Suffolk County, Long Island area. The raid was based on the employment of undocumented Pakistani immigrants who were smuggled in, given fake Social Security numbers stolen from children or the deceased, and were forced to work up to 100 hours at lower-than-minimum wages. Following the raid, 7-Eleven issued the following statement: "7-Eleven, Inc. will take aggressive actions to audit the employment status of all its franchisees’ employees."
In the United States, many 7-Eleven locations used to have filling stations with gasoline distributed by Citgo, which in 1983 was purchased by Southland Corporation (50% of Citgo was subsequently sold in 1986 to Petróleos de Venezuela, S.A., with the remaining 50% acquired in 1990). Although Citgo was the predominant partner of 7-Eleven, other oil companies are also co-branded with 7-Eleven, including Fina, Exxon, Gulf, Marathon, BP, Sunoco, Shell, Chevron (some former TETCO convenience stores were co-branded with Chevron, Valero and Texaco prior to the 7-Eleven purchase in late 2012), and Pennzoil. Alon USA is the largest 7-Eleven licensee in North America.
On September 27, 2006, 7-Eleven announced the impending cessation of its 20-year contract with Citgo and that the contract would not be renewed. 7-Eleven Spokeswoman Margaret Chabris said: "Regardless of politics, we sympathize with many Americans' concern over derogatory comments about our country and its leadership recently made by Venezuela's president Hugo Chávez. Certainly Chávez's position and statements over the past year or so didn't tempt us to stay with Citgo." Later she said that "People are making it out to be more than it is." Citgo's Chief Executive Felix Rodriguez responded with a correction the following day, accusing 7-Eleven of exploiting the situation to score political points against Chavez, and pointed out that Citgo's decision to terminate the contract with 7-Eleven had been made in July, for practical and economic reasons: "[The reports are] a manipulation because ever since the month of July have we announced that we did not intend to renew a contract with 7-Eleven, which was 20 years old and that was part of a bad business deal for Venezuela." A statement found on Citgo's homepage stated: "The 7-Eleven contract did not fit within CITGO's strategy to balance sales with refinery production after the sale of its interest in a Houston area refinery."
7-Eleven signed an agreement with ExxonMobil's retail interests in December 2010 for the acquisition of 183 sites in Florida, This was followed by the acquisition of 51 ExxonMobil sites in North Texas in August 2011.
7-Eleven has been consistently ranked in Entrepreneur's Franchise 500, ranked 6th in 2014 (falling two spots from 2013). In addition, they were ranked No.2 in Entrepreneur's 2014 Fastest-Growing Franchises. In 2008, 7-Eleven was named the number one franchise by Entrepreneur, beating out Subway, which had held the number one spot for 15 years.
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