How much money 7-11s make per month (range)?

[timoti]

Hi,

I assume most probably barely break but the most busy ones must be raking in serious money for example the one in Chaeng Wattana immigration complex. 10M thb per month?

 

what do you guys think? There isn't much info about the stats online especially for Thailand.

 

Just curious.

[KannikaP]

There is a BIG difference between TAKE & MAKE.

[scubascuba3]

I don't know the details but they must make a lot of money in a good location, same McDonald's etc, but you need decent money to start one, not same a pikey bar

[steven100]

you mean make as in monthly takings or profit after expenses are paid ..... 

anyway,    I can tell you some are franchised out and some are not,   but the CP family who owns the 7-11 company which is CP and is making millions of baht every day,  the meter never stops '   The owner makes millions of baht every day .....

no wonder he's one of the most wealthiest guys in Thailand.   Suphachai Chearavanont owns CP COMPANY.

 

The family owns the Charoen Pokphand conglomerate, and was ranked by Forbes Asia in 2017 as Asia's fourth-wealthiest family with a net worth of US$36.6 billion.

 

 

Edited July 13, 2023 by steven100

[bignok]

Not much in Thailand. 39 baht sandwich compared to 300 baht in kfc.

[BenStark]

I very much doubt that the one the OP mention makes even something near to 10 million baht a month.

 

If it makes good money it must be CP owned, because any franchise that makes decent money will get a CP owned next door

[bobandyson]

46 minutes ago, timoti said:

I assume most probably barely break but the most busy ones must be raking in serious money for example the one in Chaeng Wattana immigration complex. 10M thb per month?

 

I doubt CW is open 24/7 so the 7-11 there will be closed for 12 hours(?) each day. Meanwhile the aircon and refridgeraters must be permanently on running up the overheads. 

[TorquayFan]

If you are considering investing in a 7/11, be extremely careful.

 

Should you be lucky enough to find a profitable 'hotspot', the usual form is there will be another branch or branches set up very close to you within a year or two.

 

IF your Missis wants to work all hours fair enough but it may not make you rich.

 

As ever, location is the critical factor. The passing 'footfall' and being able to park closeby are crucial too.

[ChaiyaTH]

Is depends, let's assume a less busy and for that reason also more reasonable rent area:

If they are open 24 hours per day and would get 15 customers per 1 hour on average, spending only 100 baht each average, this would be 36,000 baht turn-over per day. Let's say the franchise owner receives 30% of this as a margin, that is 10,800 baht. 

He would then need to pay 6 staff 500 baht = 3,000 baht per day, electric 2000 baht per day, rent 2000 baht per day. Total: 7,000 baht per day costs and a profit margin of 3,800 baht per day. 

 

Just a random example, there would also be some additional income from ATM's and stuff potentially. Or for providing all the payment services. 15 customers per hour with 100 baht isn't that much too, even in my quiet area there is easily 15 per hour at night hours.

 

Still have to consider you first have to obviously invest to have a 7/11 too, so depending on that cost it earns zero until that is paid back. And as of investing, it requires 'significant' cashflow, which might be risky (but that is doing business), depending on your net worth.

Edited July 13, 2023 by ChaiyaTH

[Celsius]

My wife used to work for CP as a 7/11 franchiser. She was a location specialist. She quit that job 15 years ago, but the OP is pretty much correct. The owners would be lucky to clear 30k a month after all expenses, but these expenses would probably include a bank loan. 

 

I wanted to open 7/11 out of pure boredom and the fact she could get a franchise on better terms as an ex employee, however, she convinced me that this is extremely hard work and a lot of headache. A better franchise in her opinion would be Amazon coffee, but I really hate their coffee.

 

Some of her friends own 2-3 stores and are doing well. But they had years of training and know everything that there is to know about running this business.

 

My wife is a big fan of Maru Waffle franchise and thinks it's a fun job with not much risk. Also any franchise that deals with ballz....fish ballz, pig ballz, chicken ballz......low fees, free training which can be useful once you decide to un-franchaise yourself.

Edited July 13, 2023 by Celsius

[Rimmer]

Off topic troll posts and replies have been removed

[Ralf001]

Old post from 2008, but yeah lot of hard work for not a lot of profit.

 

https://aseannow.com/topic/185262-anyone-bought-managing-or-running-a-7-eleven/

[jaideedave]

35 minutes ago, Celsius said:

My wife used to work for CP as a 7/11 franchiser. She was a location specialist. She quit that job 15 years ago, but the OP is pretty much correct. The owners would be lucky to clear 30k a month after all expenses, but these expenses would probably include a bank loan. 

 

I wanted to open 7/11 out of pure boredom and the fact she could get a franchise on better terms as an ex employee, however, she convinced me that this is extremely hard work and a lot of headache. A better franchise in her opinion would be Amazon coffee, but I really hate their coffee.

 

Some of her friends own 2-3 stores and are doing well. But they had years of training and know everything that there is to know about running this business.

 

My wife is a big fan of Maru Waffle franchise and thinks it's a fun job with not much risk. Also any franchise that deals with ballz....fish ballz, pig ballz, chicken ballz......low fees, free training which can be useful once you decide to un-franchaise yourself.

Very interesting.Years ago I put my step daughter through TCCU in Bkk for a degree in accounting.All done OK .I thought later it would almost cost the same to get her a 7-11 store for what the degree expenses cost me.

Your information indicates that this would probably have been a poor decision. She was younger (immature) at the time and with no retail experience it most likely would have failed.

She's working in retail nowadays and doing fine.

Thanks for that so I now have no regrets.

To the point she works at King Power and gets good sales bonuses and extra language pay. At the end of the day maybe not much less than a 7-11 franchise (depending) of course. Cheers 

[Celsius]

22 minutes ago, jaideedave said:

Thanks for that so I now have no regrets.

To the point she works at King Power and gets good sales bonuses and extra language pay. At the end of the day maybe not much less than a 7-11 franchise (depending) of course.

 

Definitely better and I think King Power also provides health insurance and provident fund....something she would have to pay herself in the long run if she was her own "boss" at 7

Edited July 13, 2023 by Celsius

[sirineou]

2 hours ago, timoti said:

I assume most probably barely break but the most busy ones must be raking in serious money for example the one in Chaeng Wattana immigration complex. 10M thb per month?

If they make a lot of money, you should go pen one across the street from it..

If I understand it right the 7 11 franchise does not have area market protection.  

[Celsius]

2 hours ago, scubascuba3 said:

I don't know the details but they must make a lot of money in a good location, same McDonald's etc, but you need decent money to start one, not same a pikey bar

 

Actually you can start one with only 1 million.

 

7 has several different "packages" depending on how much profits and risk you are after. Some of their packages even include rent. However, this info is from 15 years ago, so.....

 

But when we were looking into opening Amazon 2 years ago, they also had a similar scheme. I think their smallest start up package was below 500k. Of course, this assumes a bank loan. They were guaranteeing 300 cups per day which was a break even point for a small franchise. 

 

I pulled out a calculator and if we were to take on a loan and go with the lowest priced package, 2 of us would be making about the same amount as barista. The only upside is that in 5 years the loan would be paid off and profits would be higher. Of course, they could get you on other things, such as required renovations, updates or whatever they want to do.

[CartagenaWarlock]

2 hours ago, Celsius said:

My wife used to work for CP as a 7/11 franchiser. She was a location specialist. She quit that job 15 years ago, but the OP is pretty much correct. The owners would be lucky to clear 30k a month after all expenses, but these expenses would probably include a bank loan. 

 

I wanted to open 7/11 out of pure boredom and the fact she could get a franchise on better terms as an ex employee, however, she convinced me that this is extremely hard work and a lot of headache. A better franchise in her opinion would be Amazon coffee, but I really hate their coffee.

 

Some of her friends own 2-3 stores and are doing well. But they had years of training and know everything that there is to know about running this business.

 

My wife is a big fan of Maru Waffle franchise and thinks it's a fun job with not much risk. Also any franchise that deals with ballz....fish ballz, pig ballz, chicken ballz......low fees, free training which can be useful once you decide to un-franchaise yourself.

That is the key. Unless you know every aspect of  a business, never venture into that business. It is always better to stick to what you know. I get lots of call from agents of US franchisers and they even tell me that they will train me. But I am not interested because not only I don't know every aspect of the business, I also understand that all businesses require hard work. I was involved in real estate AirBnb rental when interest rate was almost 3% and bought a few condos/apartment in Las Vegas, Fort Lauderdale, Albufeira (Portugal), and Benidorm (Spain). After running those for AirBnb rental through rental agents for five years, I found my return in five years averaged less than 5%. In the same period, my investment returns from equity market was between 15-20%. I sold all my real estate holdings by 2022 and reinvested the money in equities, bonds, etc.

Real estate is good for creating generational Wealth so also businesses and one can leverage OPM and the wealth in real estate/businesses to buy companies and take them to public to become a billionaire. But It requires lots of hard work. I have experience in equity markets and I prefer to stay in the field where I have 20 years of experience. Except the year 2022, I never had a loss year in the last twenty years, including the the crisis year of 2008-2009. This year so far my gains are above 20%. No, I don't do day trading. I buy index funds/ETFs and hold them for at least a year before selling them. 

Edited July 13, 2023 by CartagenaWarlock

[digbeth]

1 hour ago, sirineou said:

If they make a lot of money, you should go pen one across the street from it..

If I understand it right the 7 11 franchise does not have area market protection.  

last I looked the existing franchise in the area has first refusal as in, corporate wants a cut of the action, you better cough up the cost to open another branch next door or opposite, not easy if you don't own the land, otherwise they'd find someone who would or corporate would do it themself and drive you out of business.

this is usually triggered after your existing store has reached a certain threshold of takins per day, 10-15 years ago it was 60-80,000 a day

[bignok]

3 hours ago, ChaiyaTH said:

Is depends, let's assume a less busy and for that reason also more reasonable rent area:

If they are open 24 hours per day and would get 15 customers per 1 hour on average, spending only 100 baht each average, this would be 36,000 baht turn-over per day. Let's say the franchise owner receives 30% of this as a margin, that is 10,800 baht. 

He would then need to pay 6 staff 500 baht = 3,000 baht per day, electric 2000 baht per day, rent 2000 baht per day. Total: 7,000 baht per day costs and a profit margin of 3,800 baht per day. 

 

Just a random example, there would also be some additional income from ATM's and stuff potentially. Or for providing all the payment services. 15 customers per hour with 100 baht isn't that much too, even in my quiet area there is easily 15 per hour at night hours.

 

Still have to consider you first have to obviously invest to have a 7/11 too, so depending on that cost it earns zero until that is paid back. And as of investing, it requires 'significant' cashflow, which might be risky (but that is doing business), depending on your net worth.

15 per hour is way too low even quiet ones. 50 per hour minimum

[Ralf001]

4 hours ago, ChaiyaTH said:

Is depends, let's assume a less busy and for that reason also more reasonable rent area:

If they are open 24 hours per day and would get 15 customers per 1 hour on average, spending only 100 baht each average, this would be 36,000 baht turn-over per day. Let's say the franchise owner receives 30% of this as a margin, that is 10,800 baht. 

He would then need to pay 6 staff 500 baht = 3,000 baht per day, electric 2000 baht per day, rent 2000 baht per day. Total: 7,000 baht per day costs and a profit margin of 3,800 baht per day. 

 

Just a random example, there would also be some additional income from ATM's and stuff potentially. Or for providing all the payment services. 15 customers per hour with 100 baht isn't that much too, even in my quiet area there is easily 15 per hour at night hours.

 

Still have to consider you first have to obviously invest to have a 7/11 too, so depending on that cost it earns zero until that is paid back. And as of investing, it requires 'significant' cashflow, which might be risky (but that is doing business), depending on your net worth.

I stopped at my local 7 this morning on the way to work (5am)... would have been atleast 20 customers in the shop.

 

[rwill]

Even in the small town i live in there are at least 4 of them.  I lost count.  They keep building more.  Pretty crazy.  I like how some of them open across the street from each other.  I guess to get the business from both directions.

[cardinalblue]

Factor in the “employee steal” fund…I have known a couple of owners thai and foreigner and both have had major problems with staff stealing money or products 

[Colabamumbai]

Big ones are corporate owned, less profitable are franchised. They see your store is real busy, put a corporate store across the road. Dont stay open 24/7, big fines. 

[mokwit]

Franchise: "using your money to expand somebody else's business"

[steven100]

11 hours ago, Ralf001 said:

I stopped at my local 7 this morning on the way to work (5am)... would have been atleast 20 customers in the shop.

 

yes .....  but those hot dogs look disgusting

[Ralf001]

4 minutes ago, steven100 said:

yes .....  but those hot dogs look disgusting

They sell hotdogs ?

[steven100]

12 minutes ago, Ralf001 said:

They sell hotdogs ?

they sure do ....  they have packet one's or they make some and sit them on the counter tray .... and they look horrible .. imo      Lol      

[brianthainess]

16 hours ago, Celsius said:

My wife used to work for CP as a 7/11 franchiser. She was a location specialist. She quit that job 15 years ago, but the OP is pretty much correct. The owners would be lucky to clear 30k a month after all expenses, but these expenses would probably include a bank loan. 

 

I wanted to open 7/11 out of pure boredom and the fact she could get a franchise on better terms as an ex employee, however, she convinced me that this is extremely hard work and a lot of headache. A better franchise in her opinion would be Amazon coffee, but I really hate their coffee.

 

Some of her friends own 2-3 stores and are doing well. But they had years of training and know everything that there is to know about running this business.

 

My wife is a big fan of Maru Waffle franchise and thinks it's a fun job with not much risk. Also any franchise that deals with ballz....fish ballz, pig ballz, chicken ballz......low fees, free training which can be useful once you decide to un-franchaise yourself.

Harvesting all those ballz must be time consuming, especially finding chicken balls.

[brianthainess]

2 hours ago, rwill said:

Even in the small town i live in there are at least 4 of them.  I lost count.  They keep building more.  Pretty crazy.  I like how some of them open across the street from each other.  I guess to get the business from both directions.

I took a drive through Ban Chang looked like 20+ 7/11s

[brianthainess]

1 hour ago, Colabamumbai said:

Big ones are corporate owned, less profitable are franchised. They see your store is real busy, put a corporate store across the road. Dont stay open 24/7, big fines. 

And then mini C open up next door.