Is the 7-11 franchise out of control. A street in Pattaya has one ever 50m to 100m

[ericthai]

14 hours ago, Enoon said:

 

Because the "starry eyed" people who bought into them are stuck in them, never having earned enough money to pay off the debts incurred when they borrowed to get into them?

 

They spend their lives paying off interest?

 

I may be wrong, but it would seem to be an obvious reason.

 

Not having read this, I can't really say:

 

Top 4 Reasons to NOT Buy a 7-Eleven Franchise

 

Whatever, there are always plenty more starry eyed individuals "in stock".

 

 

 

I have a friend in the USA that owns 3 Mcdonalds and it appears he's doing good. Several Trips abroad a year, two houses, boats etc.   

 

I think the ones that buy a franchise and think they dont have to work or dont know how to run a business are the ones that have issues. Not everyone is cut out to run a business, they may want too but just no experience or knowledge how make it work.

[ericthai]

14 hours ago, MikeN said:

I once came across a crossroads somewhere in an innner BKk suburb that had a 7/11 on 3 corners and a Familymart on the other ! It was an older part of town,not a particularly prosperous area, just townhouses no condos, nor was the road too busy to cross, so I don't know why anybody thought that 4 convenience stores were wanted or profitable.

It's been like this forever. Dont matter where in Thailand you go, you will see multiple 7-11 one the same street. 

[impulse]

5 hours ago, ThaiPauly said:

I have never seen a closed 7/11  !!

 

I suspect the ones that fail are taken over by the CP corporation, either to operate as a company store, or to sell on to a different franchisee.  Easier for CP to make money since the shop was already paid for by the previous (failed) franchisee, they pay no royalty fees to themselves, and get the inventory at low wholesale.

 

[jastheace]

12 hours ago, Don Mega said:

If one cannot drive/ride the 2km from LK to Khopai in 7 minutes they should just give up.

thanks don mega. thought u were my mate.????????

[NanLaew]

On 1/15/2020 at 10:50 PM, URMySunshine said:

On 1/15/2020 at 10:22 PM, impulse said:

 

The theory behind the franchise is that they have proven the market, they've developed the sourcing and distribution and inventory system.  Basically, you're buying a complete system that generates cash.  If you work it, you bought a job.  If you hire someone to work it, you've bought a cash flow- contingent on some smarts on your part.

 

The franchisees all know that going in...  

 

I would love to know what the average franchisee gets pa and for what investment. 

Based on @impulse rather excellent summation, those that farm out the operation are doing well, especially if they have 2 or 3 shops. The single, self-operators, maybe not so well.

 

The key is having the 'smarts' that he mentioned.

[Berkshire]

9 hours ago, URMySunshine said:

Like Amway but not as obvious and with products that people want to buy at a price they can afford.Shame the franchisee is probably paying for our convenience. 

I wouldn't consider Amway a franchise....more like a pyramid-scheme and a scam. 

[URMySunshine]

1 minute ago, Berkshire said:

I wouldn't consider Amway a franchise....more like a pyramid-scheme and a scam. 

it is a scam based on suckering new 'distributors' to sell overpriced , under quality products to your social networks but more importantly sell the 'dream' of being rich and self employed and grow your 'downline'. 99% of folk never make any money and of the 1% who do few seldom make a good living. It is a cult in many respects.

 

https://www.quora.com/How-does-Amways-business-model-operate 

[ubonr1971]

17 hours ago, Matzzon said:

Only about everything. ????

Calling the 7-11 franchise a daft business model???? 

putting ten of the same 7-11 shops in the same street is a bit daft or do you think this is normal?

[ubonr1971]

13 hours ago, thailand49 said:

Fifteen years ago I was approached to buy a franchise, I remember then there were A and B models, 1.5 2.5 million up front for 8 years thereafter you had the option to renew. This is when you see one close and remodel usually if the option isn't pick up so they remodel for themselves or the new investor. You don't have the option to select the location rule one is they can open one as close to 50 (whatever metric they call it). As noted they have tons of rules for ownership.

 

Then these representatives went around selling that you can make 100,000 baht clear a month, in my case the more question I asked the more stupid she got.  In the end, if it was sure thing one would be crazy not to gather a number of investor and start buying them up. I think today the investors are mostly gone CP is opening them up on their own it is a plan for monopoly!  Out on the Darkside they have pretty much closed all the Family Marts the competition is mini Big C, lotus, and C.J.

 

If you want to see even more 7/11 come to the Darkside and visit a Soi called Nernpludwan. 

 

News?  CP is or already put in a offer for Lotus operation in Thailand and Maylasia?

This is exactly what happened to me when a rep came out a few weeks ago. She said in the first yr 100,000 profit (after expenses) a month. By 4 yrs time she said 1,000,000 profit a month. I laughed at this and didnt believe her of course. I will not be proceeding but might rent out my building to them

[ubonr1971]

10 hours ago, ThaiPauly said:

I have never seen a closed 7/11  !!

we saw one close in our city. it was bc the landlord didnt renew the lease

[Matzzon]

50 minutes ago, ubonr1971 said:

putting ten of the same 7-11 shops in the same street is a bit daft or do you think this is normal?

If you have a shop there already, you will be asked if you want to open one more before they pass the buck. The reason they do that is because there is a market for one more franchise. They want to make as much as possible out of the market possibilities, as you as already being an owner should want too.

Also, this is nothing new. It stands in their franchise agreement with every shop or shops under the same franchise. If they are not so quick and actually read before they put their name on the paper, all is very clear and straight forward.

According to that, a franchise owner with only one shop, is aware of this fact from start. If they do not want to expand, the franchise can pass the buck to someone else or open themselfs.

Answer based on above: Yes, I think it´s normal to seek expansion and more profit in all parts and branches in an organisation if the market gives a possibility.

[KenKadz]

Another demonstration of No Zoning Restrictions or License Controls by the Government Agencies. Mai Pen Rai!

[URMySunshine]

Just now, KenKadz said:

Another demonstration of No Zoning Restrictions or License Controls by the Government Agencies. Mai Pen Rai!

Though the converse of that argument is Thailand is a more more liberal free market than say western countries in that almost anyone can open a business doing pretty much anything even in their own house in a residential area. There is a very low barrier to entry which makes for a very entrepreneurial populace IMO.

[BritManToo]

1 hour ago, KenKadz said:

Another demonstration of No Zoning Restrictions or License Controls by the Government Agencies. Mai Pen Rai!

It'd be handy to have a few more corner shops in the UK.

As it is at the moment, you need a car to drive 20Km to an out of town shopping centre in order to buy your groceries.

France is almost as bad.

Edited January 17, 2020 by BritManToo

[Cricky]

On 1/15/2020 at 9:20 PM, ubonr1971 said:

I was shocked to see one street in Pattaya (Khopai Rd which is 5min from Soi LK metro area) that has a 7-11 convenience store every 50 to 100m.

You Are easily shocked.

[kokesaat]

I'm a fan of 7-11.  Clean, ac, friendly staff, always open, 0% fresh milk, most all prices the samish of Lotus, and a far cry better than Lotus or Big C minimarts.  Unlike mom and pops, their refrigerators are always plugged in and the drinks are icy cold.

 

This latest iteration of a 7-11 spotted outside Global House in Udon.  

 

[URMySunshine]

1 hour ago, kokesaat said:

I'm a fan of 7-11.  Clean, ac, friendly staff, always open, 0% fresh milk, most all prices the samish of Lotus, and a far cry better than Lotus or Big C minimarts.  Unlike mom and pops, their refrigerators are always plugged in and the drinks are icy cold.

 

This latest iteration of a 7-11 spotted outside Global House in Udon.  

 

The quality of the products and offer to the customer is doubted by few here I would have thought. 

[thailand49]

7 hours ago, ubonr1971 said:

This is exactly what happened to me when a rep came out a few weeks ago. She said in the first yr 100,000 profit (after expenses) a month. By 4 yrs time she said 1,000,000 profit a month. I laughed at this and didnt believe her of course. I will not be proceeding but might rent out my building to them

Right I told the representative you put that in writing and I have no problem.  These days renting to them is the best thing a small unit can bring you 50,000 baht a month, today the stores are huge on the Darkside 3 times what you see inside Pattaya tourist area, I couldn't confirm but I heard something in the range of 100,000 per month for these large stores, they include selling coffee, bakery, pharmacy. I'm looking at a piece of land Nernpludwan and Soi Siam Country 2-3 million then call one of the chains starting with 7/11?

[thailand49]

12 hours ago, ericthai said:

I have a friend in the USA that owns 3 Mcdonalds and it appears he's doing good. Several Trips abroad a year, two houses, boats etc.   

 

I think the ones that buy a franchise and think they dont have to work or dont know how to run a business are the ones that have issues. Not everyone is cut out to run a business, they may want too but just no experience or knowledge how make it work.

When it comes to 7/11 here in Thailand just because you can buy one for 8 years doesn't mean they will let you run it! In my conversation confirm on paper you must have experience or a business degree if not they provide a manager to run the store.

[URMySunshine]

It has been discussed before.

 

 

[rvaviator]

On 1/16/2020 at 3:23 PM, DannyCarlton said:

One of my near neighbours has 4 7/11 franchises. I don't know what his annual returns are but he doesn't live a lavish lifestyle.

Have you looked under hit mattress ? ????

 

[URMySunshine]

12 minutes ago, rvaviator said:

Have you looked under hit mattress ? ????

 

One of my sister in laws has a hole in the wall restaurant in a modest sized town deep down south that opens from dawn to dusk 7 days a week with a food cart at the front serving motorbikes that buzz in and out. Stuff is 30 - 50 baht a pop . She showed us an ice bucket filled to the top with notes. She is grossing around 100,000 baht a week. Buys a lot of gold and has her son and daughter university educated overseas, Apart from the statutory HiLux you would never know they were loaded to look at their restaurant and day to day lifestyle. 7/11s are for suckers. 

 

I should add that their food is aroy mahk mahk... 

Edited January 17, 2020 by URMySunshine

[Max69xl]

18 hours ago, HHTel said:

I live in Hua Hin and during my time here, I've seen several 7/11's close.  Some have been re-opened by CPall but many have not.

I think he meant he'd never seen a 7/11 which didn't stay open 24/7.

Edited January 17, 2020 by Max69xl

[Max69xl]

4 hours ago, URMySunshine said:

One of my sister in laws has a hole in the wall restaurant in a modest sized town deep down south that opens from dawn to dusk 7 days a week with a food cart at the front serving motorbikes that buzz in and out. Stuff is 30 - 50 baht a pop . She showed us an ice bucket filled to the top with notes. She is grossing around 100,000 baht a week. Buys a lot of gold and has her son and daughter university educated overseas, Apart from the statutory HiLux you would never know they were loaded to look at their restaurant and day to day lifestyle. 7/11s are for suckers. 

 

I should add that their food is aroy mahk mahk... 

"7/11s are for suckers"

Comparing a food truck with 7/11 is just stupid.

I guess you weren't around when there were no 7/11 at all in Thailand. Every small thai mart here and there were total c**p. Almost no dairy products what so ever. If it wasn't for 7/11 the prices would be much higher and no competition what so ever. Without 7/11 there wouldn't be any Tesco Lotus Express. Even Family Mart had to copy 7/11 to be more competitive. And the quality is higher just because of 7/11. Don't forget that a 7/11 is a convenient store, not Big C or Tesco Lotus. 

Edited January 17, 2020 by Max69xl

[URMySunshine]

8 hours ago, Max69xl said:

"7/11s are for suckers"

Comparing a food truck with 7/11 is just stupid.

I guess you weren't around when there were no 7/11 at all in Thailand. Every small thai mart here and there were total c**p. Almost no dairy products what so ever. If it wasn't for 7/11 the prices would be much higher and no competition what so ever. Without 7/11 there wouldn't be any Tesco Lotus Express. Even Family Mart had to copy 7/11 to be more competitive. And the quality is higher just because of 7/11. Don't forget that a 7/11 is a convenient store, not Big C or Tesco Lotus. 

I should have prefaced that as an investment,  a return of investment , entry with very low capital requirement, freedom to employ family or anyone you want ,  ability to shelter profits from taxation and freedom to sell the business how you want  and when you want 7/11 could never compete as a business prospect to one who would go the restaurant route. Of course as a customer 7/11 wins every time and the hygiene to my eyes of her restaurant / food truck leaves something to be desired. 

[sead]

You cant get rich on those franchises. When 7eleven sees that 1 shop is making good money they pop up another 1 next door. And so on

Edited January 18, 2020 by sead

[joskeshake]

On 1/16/2020 at 3:55 PM, Don Mega said:

Yeah hate people that tell lies... Khopai to LK is 2.1km and take 7 minutes according to google maps.

if you can do this in 5 or 7 min, congratulations,must write you in Olympics.

 

[Don Mega]

17 minutes ago, joskeshake said:

if you can do this in 5 or 7 min, congratulations,must write you in Olympics.

 

Is driving a car an Olympic event ?

[Saltire]

My nearest 7/11 is a one hour drive (50 Km) - is this a record? ????

[Don Mega]

Just now, Saltire said:

My nearest 7/11 is a one hour drive (50 Km) - is this a record? ????

Maybe press the throttle a bit harder.