Advice About 7-11's

[King Nick 4th]

Does anyone know where I can get more info on starting up a 7-11 ?

I have a piece of land and was thinking of building a shop ready for a 7-11, could this then be rented back to them ?

Thanks in advance for any advice.

[funfun]

Does anyone know where I can get more info on starting up a 7-11 ?

I have a piece of land and was thinking of building a shop ready for a 7-11, could this then be rented back to them ?

Thanks in advance for any advice.

http://www.franchiseworks.com/advertiser.a...&p=platinum

franchise from memory is about 1 mil bhat, and all you get is the name but anyways that link above should help.

best of luck

[Chang_paarp]

funfun

That might be how it works in the real world, but we are talking Thailand here.

King Nick 4th,

Are you Thai or do you have a Thai who can front the operation for you? Does the Thai person have a degree and or lots of relevant retail experience? These are important things to the people who give out the franchises.

A better web site would be this one; http://www.7eleven.co.th/main.html

This page has more information, http://www.7eleven.co.th/Franchise/franchise_howto.html unfortunately it is all in Thai, so having a Thai partner or being able to speak and read Thai is a big help dealing with this lot.

Good luck.

[soundman]

7/11 don't hand over liscenses for their franchises willy nilly. Fronting the 3 mil buy in fee doesn't guarantee a franchise liscense. Marketing will want to make sure your property is suitable with their overall marketing strategy.

There are a few threads in this business forum concerning 7/11's. Quick search & you'll find lots of reading material.

Soundman.

[Maestro]

I have a piece of land and was thinking of building a shop ready for a 7-11, could this then be rented back to them ?

As far as I know you will be free to rent your building to anybody willing to rent it from you, including a person or company operating a 7-11 store. I believe, though, that 7-11 itself does not rent the store, it is the person or company operating the franchise doing it.

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Maestro

[Heng]

CP 7-11 does indeed lease some of their locations. More than a few folks have built up their rental property portfolios buying up shophouses and leasing them to both franchise owners and the respective companies (Tesco Lotus Express, CP 7-11, Family Mart, etc.) themselves.

[soundman]

CP 7-11 does indeed lease some of their locations. More than a few folks have built up their rental property portfolios buying up shophouses and leasing them to both franchise owners and the respective companies (Tesco Lotus Express, CP 7-11, Family Mart, etc.) themselves.

This is correct. 7/11 leases a shop in our PTT service station. We have nothing to do with the day to day running of the business & the lease figure is calculated as a base figure + a % of sales.

[blizzard]

give the address of your property so these fine people can give you a clearer idea of your chances.

developling a piece of property and having 7-11 move in must be similiar to winning the lottery!

[Heng]

Well, that's why you get CP 7-11 to come out to your property FIRST. They'll come out 2-3 times (or less if they are really interested) and stand there with a clicker to count pedestrian and vehicle traffic.

You can sometimes butter up the deal with free rent for X months or even years (that's how RCA was built... something like 3 years rent free for bar and club owners to come and set up). That's what we do when we don't feel like developing something with cash out of pocket. Let the tenant do it.

[think_too_mut]

There were several treads on 7-11 in this section.

From memory, people who knew a thing or two or have tried, said:

CP decides if the location is acceptable;

The lease has to be with a Thai who has at least HSC and 3-5 years of retail experience;

It is not possible to get whole (if anyone) family working in the shop, all assistants have to have HSC and have to pass CP approval

The owner can expect, after all is paid, about 40 k baht per month (working in the shop himself too). About the same money as English teachers who never invested anything.

Needless to say, I kicked that idea out of my head, it flashes back only when I see a post about it.

[soundman]

The owner can expect, after all is paid, about 40 k baht per month (working in the shop himself too). About the same money as English teachers who never invested anything.

The returns are a little healthier than that. We avg. around 40k per month just for rent (based on % of sales) at the 7/11 (CP owned & run) at our PTT service station.

A median sales 7/11 should turn over about 2 - 3 mil per month, of which the franchisee would expect a 5 - 10% profit margin after cost of sales, all operating costs, fixed costs & overheads.

Soundman.

Edited August 1, 2007 by soundman

[theseveredhead]

for the record i LOVE '7' and walk past family mart to shop there. its well stocked, has great a/c (ahhhhhhhh) and polite staff who are competent and quick. i have minimized my walk to larger stores to save a few baht and happily dumped the chinese shops (the few left here in pty).

[p_brownstone]

I am not sure how much time and effort 7-11 put into planning the location of their Franchisees.

At the corner of my Soi on Pattanakarn Road in Bangkok there are 4 small Supermarkets:

1) a 7-11 (been there for several years)

2) a local Family Mart type operation (the first one to open there many years ago now)

3) a Lotus Quick Serv or whatever they call it here (opened perhaps 3 years ago)

4) another 7-11 (opened about 3 months ago)

These shops are literally all in a row, with no other shops – or even spaces - between them.

I simply cannot see how any of them can make a profit.

Patrick

[blizzard]

according to one singaporean dude ,the ignornant people like brpwn and me have a lot to learn about doing buznit in thailand.

you dont need customers to make a profit doing retail............lol.

ive also noticed some 7 11 s are in quite low traffic areas.