wanting to set up 7/11 or family mart

[davetrout]

Hi fellas

me and the missus have been saving our bikkies. we have land in sissaket already we think is a good spot for small shop. its near a school. we want to have a little eating erea also, her sister is number 1 cook.

anyway we were thinking of 7/11 or family mart. has anyone done this before would like some tips.

cheers

[Jeffrey346]

I would stay away from Family Mart. They are not very well excepted by Thais. I now of 6 that have opened and 2 remain after 1 year.

[asdecas]

These are franchises. Contact CP Group for 7/11, for FM, look online who owns the franchise.

[bridge2bridge]

As far as i know 7/11 and Family Marts are franchises and can only be bought.

You can start your own shop.

Good Luck with it.

[scorecard]

The ultimate world brand owners for both 7/11 and Family Mart are massive Japanese companies.

Both have master franchise holders for Thailand.

In most cases both 7/11 and Family Mart shops are owned / operated directly by the Thailand master franchise holders.

In the case of 7/11 the master franchise holder for Thailand is a massive Thai conglomerate: CP (Charoen Pokoparn).

I have heard that a very very small number of 7/11 shops are 'sublet' from CP to local operators.

For Family Mart I don't know if they do the same.

I guess you already know that the actual store operator must follow many strict rules and polices etc., and there are regular checks and there are steep fines for any transgressions and the possibility of losing the logo.

This would usually mean (amongst other things) that you have to buy your stock from the master franchise holder, plus there would be strong restrictions on what additional stock can be on the shelves.

Banners and hoardings etc., at the front of the shop, shelving, internal wall coverings, colours, uniforms etc., are all dictated by the ultimate world brand owners and they can't be changed. Plus there are obviously start-up fees ands costs and on-going fees to be paid to continue to hold the franchise.

My guess is that adding tables and chairs and a menu would breach the rules.

But a small operation nearby, well maybe OK?

Good luck.

[kingstonkid]

Dave

7/11 and Family mart are the same company CP. The rules are a little different for each. In either case you would be a franchisee.

7/11 is run on a basis of population for the first store and then after the first store hits a quota or sales goal it is possible for anyone else to open another store in your area.

We had 0 2 years ago now have 2 within spitting distance of each other.

This link may help

http://www.thaifranchisecenter.com/directory/detail.php?fcID=f0000000160

[nicolas18]

Dave

7/11 and Family mart are the same company CP. The rules are a little different for each. In either case you would be a franchisee.

7/11 is run on a basis of population for the first store and then after the first store hits a quota or sales goal it is possible for anyone else to open another store in your area.

We had 0 2 years ago now have 2 within spitting distance of each other.

This link may help

http://www.thaifranchisecenter.com/directory/detail.php?fcID=f0000000160

Wrong, Family Mart is operated by Central Retail in Thailand (the same company than the Central department stores).

To answer the OP: if you go the 7/11 or the FM route, forget adding any sort of restaurant inside your store. You are not allowed to sell anything that is not supplied by your franchiser inside the store. You could still, however, open a small restaurant in front or next to the shop, as long as you don't advertise it as being owned by the shop, if that makes sense.

Also, there is a disturbing trend when it comes to 7/11's (no idea if that also applies to FM): let's say that you are approved to open a franchised 7/11 store in your neighborhood and that there aren't any other 7/11's nearby. If your shop is successful, after a year or so, CP might very well decide to open their own, CP-owned (as in, non-franchised) shop right across from yours or within walking distance. It's happened to countless franchisees.

[KittenKong]

Wrong, Family Mart is operated by Central Retail in Thailand (the same company than the Central department stores).

And in Pattaya, if not everywhere, they recently changed the mini-Tops stores to the Family Mart brand, which was a shame as the mini-Tops stores carried stock lines that Family Mart and 7/11 didn't do.

Also, there is a disturbing trend when it comes to 7/11's (no idea if that also applies to FM): let's say that you are approved to open a franchised 7/11 store in your neighborhood and that there aren't any other 7/11's nearby. If your shop is successful, after a year or so, CP might very well decide to open their own, CP-owned (as in, non-franchised) shop right across from yours or within walking distance. It's happened to countless franchisees.

Yes, they dont seem to care much about the well-being of their partners.

[wvavin]

I believe you have other better things to do than to set up 7-11 or FM.

[jacky54]

Don't open a 7-11 they force you to fleece customers on the beer prices

[ThaiSanookGuy]

Dave

7/11 and Family mart are the same company CP. The rules are a little different for each. In either case you would be a franchisee.

7/11 is run on a basis of population for the first store and then after the first store hits a quota or sales goal it is possible for anyone else to open another store in your area.

We had 0 2 years ago now have 2 within spitting distance of each other.

This link may help

http://www.thaifranchisecenter.com/directory/detail.php?fcID=f0000000160

A usual reply on this forum from people who know nothing but speak...

Anyway, the OP does not seem to have the $$$ to operate any franchise, so he should forget it.

[Suradit69]

Dave

7/11 and Family mart are the same company CP. The rules are a little different for each. In either case you would be a franchisee.

7/11 is run on a basis of population for the first store and then after the first store hits a quota or sales goal it is possible for anyone else to open another store in your area.

We had 0 2 years ago now have 2 within spitting distance of each other.

This link may help

http://www.thaifranchisecenter.com/directory/detail.php?fcID=f0000000160

A usual reply on this forum from people who know nothing but speak...

Anyway, the OP does not seem to have the $$$ to operate any franchise, so he should forget it.

Yes, your response was far more informative and illuminating.

[bootlace]

I would think twice about it.My gf was a manager of fm and i was looking into buying a franchise.she found out all the info in regards to costs,if staff have been there 2+ years they can buy for around 700 thous baht,if i was to buy going to cost 1.2 mil baht,then the franchise fee was the thing that stopped me in my tracks as it was a 60-40 deal for the shops takings,60% to fm and 40% me,then my gf tells me it could be changing in the new year to 70-30 70% fm and 30%me,thats when i stopped thinking of buying one,they do pay between 60-80% of rent and electrical,but geez to be making money just to give to fm,nar not for me,and as for my gf,she no longer works for them.but everybody is different good luck to you if you buy one,as another post said maybe looking at starting up your own shop that way you could have a little food selling business in there as well .

[scorecard]

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The ultimate world brand owners for both 7/11 and Family Mart are massive Japanese companies.

Both have master franchise holders for Thailand.

In most cases both 7/11 and Family Mart shops are owned / operated directly by the Thailand master franchise holders.

In the case of 7/11 the master franchise holder for Thailand is a massive Thai conglomerate: CP (Charoen Pokoparn).

I have heard that a very very small number of 7/11 shops are 'sublet' from CP to local operators.

For Family Mart I don't know if they do the same.

I guess you already know that the actual store operator must follow many strict rules and polices etc., and there are regular checks and there are steep fines for any transgressions and the possibility of losing the logo.

This would usually mean (amongst other things) that you have to buy your stock from the master franchise holder, plus there would be strong restrictions on what additional stock can be on the shelves.

Banners and hoardings etc., at the front of the shop, shelving, internal wall coverings, colours, uniforms etc., are all dictated by the ultimate world brand owners and they can't be changed. Plus there are obviously start-up fees ands costs and on-going fees to be paid to continue to hold the franchise.

My guess is that adding tables and chairs and a menu would breach the rules.

But a small operation nearby, well maybe OK?

Good luck.

A small addition, the OP mentioned that the location he has in mind is near a school.

In Thailand it's illegal to sell alcohol at any hour within a stated distance from any type or level of school. I think it's 500 metres but that needs checking.

I'm aware that the 7/11 operator is serious about not breaking any such laws. Family Mart, I don't know.

[Robert24]

In general I think it might be a good idea, suggest you look at the option of a 7/11 franchise or a normal shop.

Here some initial thoughts:

7/11:

- you have to be open 24 hours even if during many hours you cannot sell anything.

- strong brand. Students and people living or working near 7/11s will go there to buy things

- influence from CP about how to set up store, which products to sell, train staff, aircon, lighting in store, everything is given. Little room for yourself to be entrepreneurial.

- investment to buy franchise agreement relatively expensive.

- check where the next 7/11 is. If there is none in the area, chances are good that you sell very good and you make good profits.

your own shop:

- more flexibility in opening hours, what products you sell

- higher margin on products

- lower investment - only rent/buy shop renovate, decorate it etc

- in the long run you may see more competition, especially if a 7/11 comes near you, your sales revenues may drop a lot.

Overall be careful about competition. There are so many small retail shops in Thailand, I'm sure many of them don't make a lot profit. Same with 7/11. Some of them for sure don't make profit especially if there are other 7/11s nearby.

[asdecas]

OP, on the face of it your idea is an attractive one, but as the preceding posts indicate, if you don't want to be owned by "The Man", forget the 7/11 or FM franchise route.

However, with the talent for it, hard work and long hours, at least initially, and some good organisational skills, a shop/restaurant as you describe, in the right location, could work. But it would likely take some time and working up to have it running smoothly. Remember, you would be flying in the face of the current trend, which is for more and more "Mom and Pop" stores to close down, unable to withstand the 7/11 and FM assault.

Bear in mind too that, as a foreigner, you would need to be careful not to tread on any toes locally, and that might include not creating any untoward jealousies.

[forrwhat]

Have you though about a Lawson's? It is a growing minimart in Bkk. They have a lot more ready to eat items as well.

http://lawson.jp/en/store/franchising/

[Strangebrew]

Ok 7-11 will cost you if your Thai 100,000 baht to start then cost for stocking, reffers cash register, computer, security cameras, Then you got signs to put up. Now thats the easy part even if you find good spot most likely after a few months the franchise owner who is Thai will open 3 or 4 stores close by cutting into your profit. So he gets you both ways Run from that idea as fast as possible.

[johnj]

These franchises don't come cheap. I built a minimart in my village, it cost me around 220,000 baht. It was a detached unit from my house, had a bathroom and bedroom included for the misses's mother. That included buying a double glass fronted commercial refrigerator, with an ice compartment. At the time it cost me about 9,000 baht for stock, just make sure you don't let anyone have credit. I had to restock 3 times because my family felt sorry for village people who couldn't pay on the day, consequently I called it a day as there is no point having a business that has no cash flow because of people owing money, because I put my foot down that caused a loss of face and I decided to call it a day on everything, left her the house and the empty shop and went my own way and haven't looked back, TIT!

[georgemandm]

Why not just open your own shop like all the thais do from were I come from and make no money because one shop makes a lot of money all the thais think they can make the same money and yes all make no money if you think you are going to make a lot of money in thailand for all the hours you Put in to the shop think again you will not make money at all I have seen it from were I am from one shop will drop he's price or her price and you will go broke.

[maidee]

for one : will might eventually own 49% , but you cannot work in it yourself ... thai only

[sanuk711]

You have some land that is in a perfect position to open a 7-11 shop on....... contact them, let them rent it long term from you, like they do most of their shops, let them build the shop then franchise it out to someone.

Remember the 7-10-/10-7 rule, if you only get 10% in rent of what the land cost you, then you have doubled your money in 7 years (+ the land value has probably done the same).....you can work like a land owner, or work like a shop owner.

.

Why buy into headaches. ........

Edited December 29, 2014 by sanuk711

[Strangebrew]

I assume your a farang and wife is Thai Now the issue becomes are you going to get work permit? If not then hate to say but a Beer bar at first to start might be an opition with a restaurant might be best option less cash lay at start That way you get your feet wet and if it don't work out less of a loss.

[Robert24]

You have some land that is in a perfect position to open a 7-11 shop on....... contact them, let them rent it long term from you, like they do most of their shops, let them build the shop then franchise it out to someone.

Remember the 7-10-/10-7 rule, if you only get 10% in rent of what the land cost you, then you have doubled your money in 7 years (+ the land value has probably done the same).....you can work like a land owner, or work like a shop owner.

.

Why buy into headaches. ........

what do you mean with "contact them"? Who do you want to contact to build the shop and franchise it out to someone?

I'm lost, can you help?

[Robert24]

Why not just open your own shop like all the thais do from were I come from and make no money because one shop makes a lot of money all the thais think they can make the same money and yes all make no money if you think you are going to make a lot of money in thailand for all the hours you Put in to the shop think again you will not make money at all I have seen it from were I am from one shop will drop he's price or her price and you will go broke.

agree with you on that Thais love to copy others and build either student apartments, townhouses, shops or resorts and all say they become very rich but many don't make so much money. That doesn't mean that none of them are profitable, if your location for a shop is good, you don't have a lot competition, you can be profitable. The question is more how much return do you get on your investment. If it's less than 10%, I would hesitate to start it because there is always some risk involved and there are better investment opportunities that give you better returns.

[thailand49]

I hear this number cook stuff a lot here in Thailand from Thai people! majority of them can cook but know nothing how to open or run a business? They do because they now have you to foot the loses if that is the case?

When it comes to 7/11 it use to be that you can actually make some real money. But asking here you will not get a real answer. Do what I did, search it on Google and you will be guided to a number of forums that will explain to you the positive or negative of owning one. In the end, if you comprehend you would realized especially if you are in Pattaya that owning one is not the best investment since you do not actually own it for life, it is basically least to you for 7-8 years and then have to renew again.

If you got land, first look around your area particular the road you own land on and ask yourself is it a major road where they already have 7/11, if so if you plan to build/build a number of them to rent out. Save one or two for yourself and two at the end. Why! save it for 7/11 when they come calling and rent it out to them. Now you have what they call in commercial Real Estate a " Anchor Tenant " this should generate you 50,000/60,000 baht a month without doing a thing! In years, they will basically pay for your building! and everyone wants to rent next to them.

There are guys who use to own 7/11's now what they do is go around looking for area's that are growing following 7/11 pattern and buying land ahead of them and taking a change they will rent the land or building already build?

[seancbk]

Dave

7/11 and Family mart are the same company CP. The rules are a little different for each. In either case you would be a franchisee.

7/11 is run on a basis of population for the first store and then after the first store hits a quota or sales goal it is possible for anyone else to open another store in your area.

We had 0 2 years ago now have 2 within spitting distance of each other.

This link may help

http://www.thaifranchisecenter.com/directory/detail.php?fcID=f0000000160

Wrong, Family Mart is operated by Central Retail in Thailand (the same company than the Central department stores).

To answer the OP: if you go the 7/11 or the FM route, forget adding any sort of restaurant inside your store. You are not allowed to sell anything that is not supplied by your franchiser inside the store. You could still, however, open a small restaurant in front or next to the shop, as long as you don't advertise it as being owned by the shop, if that makes sense.

Also, there is a disturbing trend when it comes to 7/11's (no idea if that also applies to FM): let's say that you are approved to open a franchised 7/11 store in your neighborhood and that there aren't any other 7/11's nearby. If your shop is successful, after a year or so, CP might very well decide to open their own, CP-owned (as in, non-franchised) shop right across from yours or within walking distance. It's happened to countless franchisees.

The OP could also look into opening a Lawson franchise. They are expanding in Bangkok and probably across the country.

The Lawsons I've seen have mini restaurants inside.

[KhnomKhnom]

Seems every non-HiSo Thai woman dreams of her own shop. I know one who built her own convenience shop also into a car wash, rental covered parking, and a coffee shop by knowing her location VERY well and providing superior service, especially in hand wash and cleaning for repeat biz. NO FOOD, a potential nightmare of buying and cooking right, mess, and left overs, not counting the labor intensive factor.

Note, foreigner will need Work Permit to help wife who then needs a company and Thai employees. Remember also, taxes, beer permits, rent, insurance, stroking local powers, and working like a dog and watching every stange as well as for theft/pilfering.

And this is the good news.

[seabass69]

Don't open a 7-11 they force you to fleece customers on the beer prices

...and encourage their staff to short change customers and play dumb.

[Xircal]

Ok 7-11 will cost you if your Thai 100,000 baht to start.....

The franchise fee is actually 1,500,000 Baht: http://translate.google.co.uk/translate?hl=en&sl=th&u=http://www.thaifranchisecenter.com/directory/detail.php%3FfcID%3Df0000000160&prev=search