I Am Considering Buying A 7/11 Franchise..

[Daxter]

Following the apparent success of two Tesco Lotus stores in two nearby "towns" in rural Mahasarakham, I am considering buying a 7/11 franchise. My wife, whose sister works in the accounts dept of 7/11, has gone off like a steam train, but before she goes to far down the track, does anyone have any experience with owning a 7/11 franchise and is able to relay some advice?

Thanks

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[PattayaPhom]

Your wife would be the manager, she needs to attend 7/11 college for 12 months. You can not choose your location, you are allocated one but have the option to refuse and wait for the next selection. Cost previousley was 1.6 Million for 5 years. As your wife is manager she will be working 24/7, 3am in the morning, till dosnt work, she gets the phone call, 5am, how do we fill stock sheet, she gets the phone call. Location is paramount to making a profit. Most in smaller towns or out of the way places have busy periods in the morning and 5pm-10pm, rest of the time are empty. Do your research befor going in too deep. Also if a member of staff dosnt turn up, you are fined the amount of their salary!

Edited August 27, 2012 by PattayaPhom

[givenall]

Your wife would be the manager, she needs to attend 7/11 college for 12 months. You can not choose your location, you are allocated one but have the option to refuse and wait for the next selection. Cost previousley was 1.6 Million for 5 years. As your wife is manager she will be working 24/7, 3am in the morning, till dosnt work, she gets the phone call, 5am, how do we fill stock sheet, she gets the phone call. Location is paramount to making a profit. Most in smaller towns or out of the way places have busy periods in the morning and 5pm-10pm, rest of the time are empty. Do your research befor going in too deep. Also if a member of staff dosnt turn up, you are fined the amount of their salary!

I looked into the idea, but what you buy is the right of running 7-11 as a lease for few years, basically become the manager and work for someone else

[transam]

We had one near us, now we have 4, two about 2 hundred yards apart and now a mini Tesco has opened up in between the two.

[FalangBaa]

You won't make a lot of money; a few thousand a month in profit, after staff wages, rent and utilities are paid, a few tens of thousands if you're lucky and your store gets loads of business. The real winner is always the 7-Eleven Corporation back in Japan. If owning a franchise was a licence to print money, everyone would be doing it. However, there are so many 7-Elevens around in Thailand now, if one happens to open up close to yours, that could cut your store's profit in half overnight. Consumers have no loyalty to one particular 7-Eleven. It's a very risky business. You could be doing decent business, then a couple more stores open on the same street and you're broke. 7-Elevens in Thailand shut down almost as often as they open up. Basically, to make money from a store you need to have an original idea and own it and run it yourself, not as a franchise. 7-Eleven Corporation in Japan is a multibillion dollar global corporation because it makes billions in profits every year from its franchisees. You, as the franchisee, will always just earn a modest income, unless you're in a very high-traffic area like central Bangkok where you can have several customers in the store every minute of every day. Out in a rural area, as it seems you are, I doubt you'll make much money from it at all... You can make a lot more money from a coin-operated laundromat, for example. Not sure if such services are called for in rural areas, where people wash their own clothes at home...

[sotsira]

No morals with 7/11 franchise locations, if you open one and your busy expect another one to open

near you shortly after.

Taking half your profits.

[rekkie]

My worry would be Tesco Lotus. Before you had the street to your self and a few thousand was made. Competition and the fact Tesco has a better selection/offer would ring alarm bells in my head. Tread carefully......

[soi41]

You won't make a lot of money; a few thousand a month in profit, after staff wages, rent and utilities are paid, a few tens of thousands if you're lucky and your store gets loads of business. The real winner is always the 7-Eleven Corporation back in Japan. If owning a franchise was a licence to print money, everyone would be doing it. However, there are so many 7-Elevens around in Thailand now, if one happens to open up close to yours, that could cut your store's profit in half overnight. Consumers have no loyalty to one particular 7-Eleven. It's a very risky business. You could be doing decent business, then a couple more stores open on the same street and you're broke. 7-Elevens in Thailand shut down almost as often as they open up. Basically, to make money from a store you need to have an original idea and own it and run it yourself, not as a franchise. 7-Eleven Corporation in Japan is a multibillion dollar global corporation because it makes billions in profits every year from its franchisees. You, as the franchisee, will always just earn a modest income, unless you're in a very high-traffic area like central Bangkok where you can have several customers in the store every minute of every day. Out in a rural area, as it seems you are, I doubt you'll make much money from it at all... You can make a lot more money from a coin-operated laundromat, for example. Not sure if such services are called for in rural areas, where people wash their own clothes at home...

Why give a lesson, when you don't know the facts ? The company running 7/11 in Thailand are CP All, one of many companies under the CP umbrella. Listed on SET, and are expecting a profit 2012 of 10 billion baht. The philosophy behind opening shops almost next to eachother is a simple one: If a shop is showing good revenue, it is a sign for CP All that the area can support another shop. Never mind the franchisetaker of the first shop and there is always someone ready the pay for the opening of the second shop. So very often you will end up being a low paid shopkeeper for CP All

[Khun Jean]

Just call it MiniMart and get your supplies from Tesco Lotus.

You would earn about the same and you have full control, not some franchise organisation.

Customers are not loyal to a standard shop, you just need to be a few seconds closer then the other one to get customers.

Add some things others don't have and you have a change to attract some extra.

Still, opening a shop and working 7 very long days a week for little money. It is not worth it.

[Boyce]

Don't do it you are wasting your money for all the hours your wife will put in , i looked at it a whille back and for the investment, you make a small percent per month , its a nightmere getting staff you can trust. At what leval of investment will you be starting at, and what have you been told by the 7/11 franchises you will earn per month ?

http://www.franchising.com/seven11/

[yoshiwara]

I seem to recall Carrefour calling it a day partly due to uncontrolled pilfering.

[Daxter]

I understand the local Tesco Lotus store is taking around 200.000 baht a day. Other than the Tesco Lotus and a dozen general stores, all selling the same products, there is no other competition. However, my wife learned yesterday that applications have already been made in both towns for 7/11's. I appreciate everyone input, but has anyone actually owned a franchise?

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[yoshiwara]

If you do not have prior experience of stock control you are asking for trouble. This is the Number 1 vulnerability.

[p_brownstone]

If 7 / 11's are open 24 hours a day why do they have a lock on the door?

Patrick

[TheWalkingMan]

Purchase a building and offer 7-11 space for rent.

[ezflip]

Purchase a building and offer 7-11 space for rent.

This is probably the best way to deal with a 7/11 in Thailand. No worries about stock, employees, profit margins, competition, just collect the rent every month.

[uptheos]

Purchase a building and offer 7-11 space for rent.

This is probably the best way to deal with a 7/11 in Thailand. No worries about stock, employees, profit margins, competition, just collect the rent every month.

Agree, this is the way to go.

[David006]

Just call it MiniMart and get your supplies from Tesco Lotus.

You would earn about the same and you have full control, not some franchise organisation.

Customers are not loyal to a standard shop, you just need to be a few seconds closer then the other one to get customers.

Add some things others don't have and you have a change to attract some extra.

Still, opening a shop and working 7 very long days a week for little money. It is not worth it.

555 methinks a noodle or fried /bbq chicken stall or maybe coffee shop+inet maybe reasonably lucrative too

....then again any retail/service industry business is gonna be a millstone unless you have complete control ie your hours, very high margins ( e.g. noodles) etc and willing to put in the very hard yards and have the constitution of a hyena..

...been there done that in another life for the ex...certainly earned my street level MBA but.....never never ever ever again!!!...he said after the third time.555

Edited August 28, 2012 by David006

[sysardman]

Just call it MiniMart and get your supplies from Tesco Lotus.

You would earn about the same and you have full control, not some franchise organisation.

Customers are not loyal to a standard shop, you just need to be a few seconds closer then the other one to get customers.

Add some things others don't have and you have a change to attract some extra.

Still, opening a shop and working 7 very long days a week for little money. It is not worth it.

555 methinks a noodle or fried /bbq chicken stall or maybe coffee shop+inet maybe reasonably lucrative too

....then again any retail/service industry business is gonna be a millstone unless you have complete control ie your hours, very high margins ( e.g. noodles) etc and willing to put in the very hard yards and have the constitution of a hyena..

...been there done that in another life for the ex...certainly earned my street level MBA but.....never never ever ever again!!!...he said after the third time.555

I'm not sure any business is a safe bet because, as others have mentioned, the bandwagon jumpers are lurking around to ruin your profits. My wife opened a litte Thai food shop and had a good customer base but within a few weeks many of the local women were opening similar shops nearby and what we thought were loyal customers started going to these places rather than ride or walk a few extra metres.

[Boyce]

Same thing happened to me and my mrs,you open something up that is going good , and others copy you , because they have not got the brains to think on a new venture themselves, only copy.

[JanKlaasen]

. I appreciate everyone input, but has anyone actually owned a franchise?

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Use the search function on this forum,there are several members including a mod who own 7/11 franchises.

[terryp]

7/11 Thailand is CP nothing goes back to Japan?

I find it strange why someone would want to run one of these sugar shops as they are all going to get hit very hard when sugar products start to get taxed .......I honestly blame 7/11 and Family Mart for Thailand's overweight children epidemic

[pomchop]

I was told by an ex thai girlfriend that many Thai people in more rural areas especially love 7/11 because they always have CHANGE. As we all know sometimes trying to give a mom and pop store a 1000 baht note for a 50 baht purchase doesn't work so well. But at 7/11 you seem to be able to always give them a 1000 baht note no matter how small the purchase and get change with no hassles. Seems they also do quite well as people pay their TOT and Electric bills there. So maybe part of their sucess is they are sort of a combo change office, utility payment, and snack store.

[JSixpack]

Just call it MiniMart and get your supplies from Tesco Lotus.

You would earn about the same and you have full control, not some franchise organisation.

Customers are not loyal to a standard shop, you just need to be a few seconds closer then the other one to get customers.

Add some things others don't have and you have a change to attract some extra.

Still, opening a shop and working 7 very long days a week for little money. It is not worth it.

+1. Thailand has a number of fake 7/11s.

This is a recurring topic.

[sysardman]

Quote @ Baxter

Following the apparent success of two Tesco Lotus stores in two nearby "towns" in rural Mahasarakham, I am considering buying a 7/11 franchise. My wife, whose sister works in the accounts dept of 7/11, has gone off like a steam train, but before she goes to far down the track, does anyone have any experience with owning a 7/11 franchise and is able to relay some advice?

Who's money is it that will be invested - from experience I have always found the 'Bank of Wife' offers very little in monetary returns (but we still love 'em)

[Dancealot]

and this is how they do it in cambodia

Edited August 28, 2012 by Dancealot

[sysardman]

and this is how they do it in cambodia

Must go to church/temple on Sundays

[BirdsandBooze]

Where I live a Tesco Express has opened directly next door to the 7/11 and taken most of it`s business apart from those lazy people who can`t be bothered to walk the extra 20 feet to Tesco`s door. The village behind has a Tesco Express directly opposite the 7/11. Where I live Tesco is cheaper and has a better selection than 7/11. With this sort of competion developing you could end up earning less than the 300 baht minimum wage

[Postmaster]

Fully agree with all the comments from experienced people. You'll be sorry if you take it on. Its a 24/7 commitment. I've had newsagencies and post offices in the UK when they were good, not much good now. There's theft not only from the public but the staff also. If you employ a smoker the total profit of your tobacco sales will be swallowed by ONE thief smoker. If a partner of one of your staff is a drinker he will be siruptiously be passed free stolen booze.

Even though you might not be directly working behind the counter yourself ( don't think you would be allowed to do that anyway) you will get fed up with the enterprise after 6 months. They are very tying. You will miss your holidays and trips with your spouse. Any kids will get neglected and go astray. Think very carefully about it and put your money in low risk bank bonds or something like.

[brd]

Same thing happened to me and my mrs,you open something up that is going good , and others copy you , because they have not got the brains to think on a new venture themselves, only copy.

remember you are in ASIA.