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

[gomangosteen]

3 minutes ago, brianthainess said:

And then mini C open up next door.

As it happens!

 

When we moved to our town (population 7000, supporting a surrounding rural area) in 2011 there was one 7-11 here, no other franchises.

 

Now - three 7-11 stores, one CJs (next to a 7-11), and a Lotus Go Fresh supermarket. 9km away on the road to the coast, two 7-11s directly opposite each other.

 

Amazon too; I'm waiting on Mr DIY - they've opened four stores in Chanthaburi city, handy for those small handyman items.

 

 

[FritsSikkink]

16 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. 

The stock is for free?

[Scouse123]

7-11 are like anything else, pubs for example

 

Good footfall, good location, good operator leads to decent Profit.

 

However, with 7-11s forced to buy everything from CP they can track and trace franchisees profit and turnover and those that they own, they will increase the rent accordingly.

 

Only one big winner in this game!

 

 

 

 

 

Edited July 14, 2023 by Scouse123

[Cake Monster]

Nobody  ever become rich in a Thai franchised Business.

Get a good site, and pay a premium no doubt for the Franchise, and next month another is opened just 50 Meter from your premium site

Mugs game IMO

[superal]

3 hours ago, mokwit said:

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

So true . Buying into a well know franchise , tied to their products & rules . Paid a down payment and signed a contract for a set amount of years . Stock is replenished by way of the computerized till . You are in effect working for the franchise bosses without them employing you . Their % profit per article will be much higher than the shops .

Much better off to go it alone . Friend has a Family Mart shop . Makes 30,000 baht a month profit but works 14 hours a day , 7 days a week . Then  pays a bank loan & part time staff .

[MrJ2U]

19 hours ago, BenStark said:

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

That's what I've heard. 

[TorquayFan]

Chaya an excellent post following my earlier - but check out the assumptions in the forecast carefully.

 

In reply to BrianThai just now, yes the location may look good but that can change in a short period. Laem Sing in Chan province had just one 7/11 a few years ago. Now there's another far bigger 7/11 50 metres away, a BigC Mini opposite, a small Lotus's Fresh AND (the name escapes me), a branch of that new Chinese place I see popping up everywhere, mainly non food.

 

Laem Sing I would describe as a quiet place, except holiday weekends. I don't know how these places all keep going ??

 

 

[scorecard]

22 hours ago, timoti said:

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.

 

There's a number of points re the operations of 7/11 in Thailand.

 

CP holds the master franchise for Thailand, from the actual global brand owner in Japan.

 

It's been mentionedbefore there's a quite small number of Thai 7/11 operators who hold a ffranchise agreement direct with the master brand owner in Japan. However perhaps 99+% of the Thailand located stores are under the CP franchise.

 

But that doesn't mean CP can change the operating regulations etc. They can't. 

 

The brand owner makes the overriding rules and regulations.

 

The brand owner in Japan directly employs a team of 'secret shoppers' who go into all stores globally (no uniform, no badges etc) do inspections, buy things, ask obvious/stupid questions, check cleanliness etc., and this is all recorded. The secret shoppers complete online surveys etc., all goes directly back to 7/11 master owner in Japan, not through CP.

 

It is possible some 7/11's are deliberately located to pull customers away from family mart, Lotus s etc.

 

But also possibly true that the master brand owner insists/demands that every store must produce a certain level of revenue / margin / turnover etc. Because the master owner gets a %.

 

It's been posted here before that nobody would be game enough to challenge CP. That's not true, the brand owner in Japan can/does cancel franchises regularly.

 

Re Thailand there's several very large corporations who would love to get the 7/11 country franchise if it was available. Central Pattana might be an example, and Central Pattana has vast, successful, long-term retail operations in Thailand.

Edited July 14, 2023 by scorecard

[khunPer]

23 hours ago, timoti said:

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.

 

It's depending on size and location. It has been mentioned before that the bottom line on a franchise is a rather small amount.

[freedomnow]

Yeah, it's that lack of an agreed exclusive trading zone.

I'm guessing better franchises have a single operator agreed  zone.

 

[mrfill]

On 7/13/2023 at 9:58 AM, 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.

Who pays for the stock? I doubt the franchise owner provides it for free.

[Celsius]

6 hours ago, scorecard said:

It's been posted here before that nobody would be game enough to challenge CP. That's not true, the brand owner in Japan can/does cancel franchises regularly.

 

CP has a license to expand 7/11 franchises in Laos and Cambodia.

 

Do Japanese employ secret shoppers to go there also because I find that hard to believe. 

[scorecard]

9 minutes ago, Celsius said:

 

CP has a license to expand 7/11 franchises in Laos and Cambodia.

 

Do Japanese employ secret shoppers to go there also because I find that hard to believe. 

If you mean is the 7/11 operations in Japan also subject to secret shopper monitoring/checking, then the answer would be yes.

 

Many companies/business operators, pretty much all industries, all countries have some form of checking of what's happening inside their stores/premises/factories/offices... 

 

Why would this NOT happen in Japan?

 

The reasons are obvious. 

Edited July 14, 2023 by scorecard

[problemfarang]

to open a very simple 7eleven you need to pay the company min start from 3mil baht. IF they accept your payment, they will send some people to check with you about the area you want to open and a few other things.

IF you CAN convince them that its a good idea to open 7 at that area they will start the paper work. For a very rural area they guarantee you 35K per baht.

there are many legal things you should know. If you do wrong which is very easy to do they will eat you alive. I tried to open like few years ago and rejected by 7eleven because im farang even tho using thai person.

no way making 10mil per month if thats your wondering.

 

 

[timoti]

What if you opened a new store that looks like 7 11 like 7even, with similar colors then you will avoid all the fees, the scrutiny and insider competition right?

 

Does Thailand have strong IP laws?