7-eleven Topic Again!

[Arthur123]

I know it is a old 7-eleven topic again. In past, many people ask the same question -- IT IS WORTH to invest a 7-11 store?

It seems like more friends here didn't suggest to buy a franchise of a 7-11 before.

I am still think to buy a 1.5m Type B 7-11 franchise so far. And really want to know that is there any friend here operating a 7-11 or already invest a 7-11 currently. Just want to get more info from the one who is doing 7-11.

I am the one who just want a stable and reasonable return, not quick rich.

Plus, when I contact with 7-11, they said the total investment is 1.5m, 500k is all kinds of fees, and 1m is deposit. You can get your 1m back after 6 years.

Also, there is target sales revenue for each store. If you can not reach the Target Sales Revenue, the CPALL will give you 10k as monthly min. return. If you can reach the Target Sales Revenue, the Monthly return will be 22k. If you can sale better than the target, the CPALL will share the excess profit with investor.

So, base on above info, I calculate as for whatever sales we make, there are 4 years and 2 months you can get your money back (if CPALL fully return your 1m, after 6 years) or if you reach sales target, there are almost 2 years, you can get you money back (22k per month).

It sounds not bad.

Because the 1.5m Baht is take over a operating 7-11 store for CPALL, and CP ALL should already choose a good location to set up the store. (Of course CPALL need the store profitable if they can not sale the store out).

So please give me some suggestion. All kind of POSITIVE oR NEGATIVE suggestion are welcomed!!

Many Thanks!!!

Arthur123

[Boater]

hi

many posts already on this subject, even 1 thaivisa owns a few

here are the links

www.thaivisa.com/forum/7-11-Tesco-Lotus-Express-Franchise-t153749.html

www.thaivisa.com/forum/Eleven-Franchise-t173375.html&st=25&start=25

www.thaivisa.com/forum/Advice-7-11-s-t133202.html

www.thaivisa.com/forum/Eleven-Franchise-t173375.html

www.thaivisa.com/forum/Owning-Mini-Mart-Business-t212756.html

[JohnGotti]

why do they need your money and not just their own?

[Arthur123]

why do they need your money and not just their own?

What I think are following reasons,

1) the franchise fee is equal to 2-3 years sales profit that if CPALL operate the store by themselves. So, if they can sell the store out as franchise, they can very quick to collect a big amount of cash. Use this amount of cash, they can open more 7-11 stores then sell as franchise.

2) the more stores CPALL have, the more sales channel they have, and the more sales they can make. CPALL set up the selling price of each product. It means they already make profit when Distribution Center Deliver goods to stores.

3) Due to more sales, CPALL could get greater bargain power with suppliers for Cheaper Price, Longer Credit Term, and other better merchandise conditions.

4) One of the most important thing for convenient store is LOCATION, once CPALL could get good location faster than FAMILY MART or Tesco Lotus Express, they already in a better position.

5) More stores could make CPALL have bigger scale than Family Mart(7-11's main competitor). It helps CPALL to cut down the cost.

6) Franchisee will take the duty of manage employees in store that instead of CPALL

[Arthur123]

hi

many posts already on this subject, even 1 thaivisa owns a few

here are the links

www.thaivisa.com/forum/7-11-Tesco-Lotus-Express-Franchise-t153749.html

www.thaivisa.com/forum/Eleven-Franchise-t173375.html&st=25&start=25

www.thaivisa.com/forum/Advice-7-11-s-t133202.html

www.thaivisa.com/forum/Eleven-Franchise-t173375.html

www.thaivisa.com/forum/Owning-Mini-Mart-Business-t212756.html

Thanks a lots Boater

There are many useful information to help me make decision.

Arthur123

[JohnGotti]

gl

keep us posted.

[JR Texas]

gl

keep us posted.

It may sound odd, but one thing I have noticed is that 7-11 stores in small towns in Thailand, especially if the town has no other 7-11, do very well.

Why? I think because Thais are craving for a taste of the West........bored to death with the same crap. It also makes them feel a bit important to walk into a 7-11.

Some of you may be laughing now.......but in the hinterlands there are people who really do think 7-11 is a special place. The like the brightness of it and the AC........and the feel of it.

If I were doing this, I would pick a small town that does not yet have a 7-11. No competition.........money, money, money.

[flying]

If I were doing this, I would pick a small town that does not yet have a 7-11. No competition.........money, money, money.

I agree

My wife & I were thinking the same.

We would be way out there & have enough close family to never need to hire

[katabeachbum]

gl

keep us posted.

It may sound odd, but one thing I have noticed is that 7-11 stores in small towns in Thailand, especially if the town has no other 7-11, do very well.

Why? I think because Thais are craving for a taste of the West........bored to death with the same crap. It also makes them feel a bit important to walk into a 7-11.

Some of you may be laughing now.......but in the hinterlands there are people who really do think 7-11 is a special place. The like the brightness of it and the AC........and the feel of it.

If I were doing this, I would pick a small town that does not yet have a 7-11. No competition.........money, money, money.

Totally agree. And get the 7/eleven franchise for this Tambor, so your only competition is Family Markt and mum&dad shops.

[keestha]

If I were doing this, I would pick a small town that does not yet have a 7-11. No competition.........money, money, money.

But it is not like the sky is the limit. If a 7/11 is doing really good business, soon CPALL or a franchisee will open a second 7/11.

The tambon where I live has five 7/11 stores now, because it is a tourist area there is a lot of money rolling around.

As a comparision, the middle sized town of Sateuk in Buriram province, where I have been going frequently the last 4 years, has just one 7/11, at a very good location. The shop has good traffic, but is not excessively busy, you never have to queue.

It is just that the spending power of the local people is low I guess.

I also saw 7/11s disappear, for instance in Hua Hin where at one point there were two 7/11s less than 50 meters apart.

By the way I have been wondering about 7/11s at obscure gas stations, would they make enough turnover?

[nonthaburial]

Must be a good deal 7:11 every block, and there is the problem,

[Macx]

Many Thais I know avoid the small mom-n-pop stores simply because they are treated better at 7-11. Not to mention 7-11 are cleaner and more convenient. When I asked them why don't they support local business, they often reply along the line: "The owner of that store was rude to me" or "He didn't give me a discount, but he gave someone else a discount."