wanting to set up 7/11 or family mart

[Sirpia]

Good luck, as soon as your hard work pays off CP will allow another 7-11 open directly across from you. Then another one on each side of it.

Perfect for them, not so perfect for you, but hey, you're nothing to them.

Just my take.

Edited December 29, 2014 by Sirpia

[happynthailand]

save your money,build and open your own shop

its more fun to run,when your own your own shop

wife has a shop right in front of a school, right now she makes 3500-4000tb a day

she also cooks and sells hot food

[davetrout]

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.

well this is why l like this forum. l m totally off the idea of 7/11. l can see the value of having own store. will spruce it up have big sign simliar to other francise. and sooner or later we want to sell petrol and diesel, this will pull a few more customers.

thanks for the good advise robert24 and others as well

[happynthailand]

Don't put up a big sign,they will come around and charge you big $$$$ for the sign

small sign is ok or no sign at all

found out the hard way

[aarn]

Hate to say it, but, if you wanna setup a 24hr convenience shop, set it up right next to a big hospital.

All the coffin-sellers know this. No curfew on selling grog. Cheers, AA

[dddave]

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!

An acquaintance who encouraged and financially enabled his wife to open a variety store/ restaurant in their Udon Thani village ran into the same problem. Family members: aunts, uncles, cousins, 2nd and 3rd cousins, ect would constantly request freebies. ( "We gave food to your mother when you were a baby!) Other villagers demanded credit and it became the first stop every morning for every monk in the area.

"You have farang...we should not have to pay." was the local attitude. Finally, she closed the shop but kept the restaurant and made it work.

The OP's wife will have to be a tough cookie and be willing to take a lot of siht from people she's known all her life.

When I lived in Udon, I noticed that even in small MooBans, the village shops were mostly run by Thai-Chinese, often 2nd and 3rd generation running them. As a group, the Chinese-Thais tend to be tough and aloof. Kids learn from the time they can walk how to handle money and how to do business their way. "Free" does not exist in their vernacular. They do give credit but they always get their money back with interest; one way or another.

Edited December 30, 2014 by dddave

[thailand49]

I do not know why I even bother with this stuff, Because the ops really does not have a choice in the matter anyways regardless of what is said here.

I heard the 7/11 stuff years ago and did the research and if the ops and many of you do the same you will see owning one is not really owning one? someone said 1,5 million not sure if any of those exist any longer at least not in Pattaya. The larger 7/11 years ago was something like 2.5 million and ownership is only for 8 years, so you better be able to earned that back pretty quick. 7/11 have standards and you got to have credentials to run one and if you can't they provide everything including the manager etc.. so what type of real profit you are going to make in 8 years to be able to get your investment back with a profit before you have to come up with another 2.5 million to renew?

And I can tell you opening your old mom and pop is a loser, rarely does a person make 4-5,000 baht a month CLEARED! when I look at the picture provided on one post and I see a large cooler unit that itself to run would cost 1,000 baht to run, When you go wholesale and buy your products like a Leo Beer, for example 47 baht, you chill it etc.. and sell for 49 baht.. get real? same with chips etc... you make a baht... how much call can you sell to make real money? Thai sit there for hours and don't even consider their time and wages?

I can go on and on it is a money loser period!

Take you money, if you can borrow it... built a number of units as I said keep a few for yourself and rent the rest out and leave two end units for 7/11 to coming running to you. They will give you 50,60,000 a month for your space it is a cash cow. A two level shop runs here in Pattaya in the Darkside for 15,000 baht a month. What you do is sit back and relax.. let your wife keep one live in it and cook out of it! You share is basically free whether you make it or not... money rent comes once a month!

I've done it lived it? and I've shell out for years as my suppose better half was thinking mini-mart! She found out six month later what a watch of time and guess who foot her mistake? Now she sits back fat as a cat, cooking at her shop ( damn good number one cook too ) just to socialize with her friends and neighbor.

In another year, the money she is getting from rent,,, plan to buy another piece of land on a main road where 7/11, Lotus, Big C mini is speculating?

Edited December 30, 2014 by thailand49

[Robert24]

save your money,build and open your own shop

its more fun to run,when your own your own shop

wife has a shop right in front of a school, right now she makes 3500-4000tb a day

she also cooks and sells hot food

Is the 3500-4000 baht revenue or net profit she makes per day?

[armadillo215]

My wife and I own a MiniMart in an apartment building on Sukhumvit Rd here in Bangkok.It is very small. We put it in her name, the easiest way, got a license for alcohol and tobacco sales, bought a three door refrigerator and buy most of our stock from the big warehouse chain here in Thailand. Due to the fact you must buy such a large quantity of whatever product you buy you don't get much of a discount because you are pretty much buying at retail and marking it up a bit. Profit margin is very small and without wholesale product having hired help is unaffordable. However we are now after one year showing a pretty good profit but it is still 17 hours a day 7 days a week with either she or I at the store. Not much of a life. Now if you are indeed looking to open a 7-11/ FamilyMart brand store be prepared to pay a hefty franchise fee but you will have access to wholesale pricing. We have a CP freezer, provided by CP to sell their product from (which by the way has the best margin in the store) as well as a Wall ice cream case, provided that we sell a great deal of. Rent and electricity is our biggest cost.

Good luck

[thailand49]

My wife and I own a MiniMart in an apartment building on Sukhumvit Rd here in Bangkok.It is very small. We put it in her name, the easiest way, got a license for alcohol and tobacco sales, bought a three door refrigerator and buy most of our stock from the big warehouse chain here in Thailand. Due to the fact you must buy such a large quantity of whatever product you buy you don't get much of a discount because you are pretty much buying at retail and marking it up a bit. Profit margin is very small and without wholesale product having hired help is unaffordable. However we are now after one year showing a pretty good profit but it is still 17 hours a day 7 days a week with either she or I at the store. Not much of a life. Now if you are indeed looking to open a 7-11/ FamilyMart brand store be prepared to pay a hefty franchise fee but you will have access to wholesale pricing. We have a CP freezer, provided by CP to sell their product from (which by the way has the best margin in the store) as well as a Wall ice cream case, provided that we sell a great deal of. Rent and electricity is our biggest cost.

Good luck

This is exactly what I'm saying.... The wife wants it knows nothing else... I see it day in day out here on the Darkside in Pattaya, Sure many Thais own the land and the mother, sister, think instead of sitting around why not just put out some products, like chips, drinks, and they sit what else is there to do? They throw all their money in one pocket have no idea what is coming or going? I had the same thing purchased a 2 door freezer also brought in Walls, plug it in and expect a hefty electric the only one making a profit is Walls? I plugged his freezer into a area with a meter, after a month what I sold my end of the profit it didn't even cover the electric that the freezer was using. Removed after a month, the guy took my wife your husband is not stupid. I was but I learned the hard way! Here you have a example of 17 hours, I remember those days very well what a waste of time? If my wife or mother were receiving wages from the so call profits we would have closed the once month, instead we stayed open for a year before she actually got the message. Today the back of my house is full of Mini mart equipment including the stupid freezer!

Today she sits back do whatever she wants while 7/11 cough up money each month, that is a anchor tenant like any big chain store in a shopping mall back home.

[happynthailand]

this is my 25stang worth

people on this form bitch an mone,just because they failed or lost money in what they tryed to do,

doesn't mean that everybody failed or lost money or their wife's' or g/f run off with all their money

some of our wife's are good at doing things,there is 5 shops in our area,wifes shop does the best

she doesn't get cheap on the hot food she sells,and you have to sell chips and snacks for the kids

she has people come from across town to eat her food,as child had lunch ,an went home an talked about how good the food was

as for the coolers in her shop they all run off of green plug-in's,saves a lot on elect

and there are a lot of whole sale shops in the city,find a good one,stay with them,save a bunch of money

plus she owns her shop,and rents the out the house behind the shop

so don't bunch all the hard working wifes that make a good living,with failed at what they do

sorry looks like that was my 50stang worth

Happy

Edited December 31, 2014 by happynthailand

[thailand49]

Sorry too? In all due respect it never amaze me how people read the negatives in GENERAL and get offended and start to talk about bitching and stuff instead except that our opinions come from some experience. Many of the negative stuff I and many here which is in the majority as always come not only from us but from Thai scholars themselves who have written articles and books regarding many of the negative stuff we are talking about. So it is not only us bitching?

There are success stories and failures in everything and being negative doesn't mean we dismiss your success story. For myself, I like the fact that I have risen the standard of living for my Thai family. The smile on her mother face says it all to me that whatever I had given to them makes live easier for them. But down deep things here have humble me down to my core because I was footing the bill like the most of you but it does not mean we should take the lost without a opinion. And giving a honest opinion and teaching them constructive criticism is good and not always just loosing face! That when I have a opinion not to just say this is Thailand as if opening a business is different here. What is different which I like many things I do not pay much taxes, so much one can just hide. My Corporation is just a front.

Let me ask you about your green plug,,, do you even have a baseline prior to the green plug to make such a statement? I have gone to lots of so call wholesale warehouse to buy stuff being sold in mini mart and rarely do you ever get such a discount even at Makro that would be worth the time in the west to be selling? Wholesale bag of chips for example 4 baht even if you buy bulk and you sell it at a mini mart for 5 baht, you sit there for hours to make 1 baht off a bag of chip?

Here is a example... I allow my wife to open her mini mart just to get it out of her system. Inventory for example 20,000 baht, 25,000 freezer etc... after a month... she makes 15,000 baht.. she smiles.. but forget one major item like Thais do? Not because they are bad because they have never been taught. She forgets sitting there 12 hours a day etc... Payroll! which in Business 101 is pay yourself first 30% so what is left not much and guess who footing the electric bill which has increase to 4,000 baht. To be honest I rather I just give her the 4,000 baht. To me that is chump change but love is blind like it has blinded you. I spend tha tin 30 minutes in a Go Go at night. It is chump change but I do it like you to make them happy. But dig deep open the books if they do not loose face and you will see it is a waste of time.

It has taken years for her to finally really listen to me and get it out of her system with all the failures from listening to other Thais who benefit from spreading miss information! This leads me back to the topic! One day my wife said we should buy a 7/11, told me a Thai representative came to her and said you can clear a 100,000 baht a month? I said out loud " No way " she got offended back to you do not want to try this is Thailand stuff. I did the research and check a forum that had former owners of 7/11, now of course this is in Pattaya, when people started buying them yes one could make and clear 100,000 baht, but today with so many it is rare but you still got people selling this old example. When I did year ago research it was something like 2,5 million for one for 8 years ownership. If one can really clear without lifting a finger 100,000 everyone would sell their mothers to get one. At 100,000 baht x12 = 1,200.000 baht a year? after 2 years it is all profit? who in their right minds wouldn't do it? but many only clear 20,000 baht so do the math, in eight years you haven't gotten you original investment back. This is why many in Pattaya you see renovation being done because the old owner has not taken the option to renew their 8 years.

My job with my wife is to make sure since I have brought her from zero to what she has today if I die to maintain on her own the quality of life she enjoys today. What I have given her and taught her since she listen and see it first hand that instead of working, let your money ( which is mines ) to work for her. That is owning the land, building on it and renting it out. Today she owns and receive rent for 4 units at 15,000 baht a pop and another 60,000 from 7/11 right on Siam Country Club road.

Next final project 2 rai of land on Siam Country. She finally learn soon she will not need me any longer.

I'm not downgrading your opinion but don't downgrade mines because it is negative. I do not look down at Thai people and know they are hard honest working people but if you are going to do something for them don't let your love for them blind you. You wouldn't never allow this in the west where majority of you come from so why would Thailand be any different. The Thais that have money in this country think the same way. This is a easier way so show it to them.

Edited January 1, 2015 by thailand49

[The manic]

how about a 8 table noodle shop? Cheap to run and maintain very profitable and very moveable.....

[thailand49]

how about a 8 table noodle shop? Cheap to run and maintain very profitable and very moveable.....

Depends if you are renting? Bowl of noodles 35 baht, how many do you need to sell?

[The manic]

how about a 8 table noodle shop? Cheap to run and maintain very profitable and very moveable.....

[topt]

Sorry too? In all due respect it never amaze me how people read the negatives in GENERAL and get offended and start to talk about bitching and stuff instead except that our opinions come from some experience. Many of the negative stuff I and many here which is in the majority as always come not only from us but from Thai scholars themselves who have written articles and books regarding many of the negative stuff we are talking about. So it is not only us bitching?

There are success stories and failures in everything and being negative doesn't mean we dismiss your success story. For myself, I like the fact that I have risen the standard of living for my Thai family. The smile on her mother face says it all to me that whatever I had given to them makes live easier for them. But down deep things here have humble me down to my core because I was footing the bill like the most of you but it does not mean we should take the lost without a opinion. And giving a honest opinion and teaching them constructive criticism is good and not always just loosing face! That when I have a opinion not to just say this is Thailand as if opening a business is different here. What is different which I like many things I do not pay much taxes, so much one can just hide. My Corporation is just a front.

Let me ask you about your green plug,,, do you even have a baseline prior to the green plug to make such a statement? I have gone to lots of so call wholesale warehouse to buy stuff being sold in mini mart and rarely do you ever get such a discount even at Makro that would be worth the time in the west to be selling? Wholesale bag of chips for example 4 baht even if you buy bulk and you sell it at a mini mart for 5 baht, you sit there for hours to make 1 baht off a bag of chip?

Here is a example... I allow my wife to open her mini mart just to get it out of her system. Inventory for example 20,000 baht, 25,000 freezer etc... after a month... she makes 15,000 baht.. she smiles.. but forget one major item like Thais do? Not because they are bad because they have never been taught. She forgets sitting there 12 hours a day etc... Payroll! which in Business 101 is pay yourself first 30% so what is left not much and guess who footing the electric bill which has increase to 4,000 baht. To be honest I rather I just give her the 4,000 baht. To me that is chump change but love is blind like it has blinded you. I spend tha tin 30 minutes in a Go Go at night. It is chump change but I do it like you to make them happy. But dig deep open the books if they do not loose face and you will see it is a waste of time.

It has taken years for her to finally really listen to me and get it out of her system with all the failures from listening to other Thais who benefit from spreading miss information! This leads me back to the topic! One day my wife said we should buy a 7/11, told me a Thai representative came to her and said you can clear a 100,000 baht a month? I said out loud " No way " she got offended back to you do not want to try this is Thailand stuff. I did the research and check a forum that had former owners of 7/11, now of course this is in Pattaya, when people started buying them yes one could make and clear 100,000 baht, but today with so many it is rare but you still got people selling this old example. When I did year ago research it was something like 2,5 million for one for 8 years ownership. If one can really clear without lifting a finger 100,000 everyone would sell their mothers to get one. At 100,000 baht x12 = 1,200.000 baht a year? after 2 years it is all profit? who in their right minds wouldn't do it? but many only clear 20,000 baht so do the math, in eight years you haven't gotten you original investment back. This is why many in Pattaya you see renovation being done because the old owner has not taken the option to renew their 8 years.

My job with my wife is to make sure since I have brought her from zero to what she has today if I die to maintain on her own the quality of life she enjoys today. What I have given her and taught her since she listen and see it first hand that instead of working, let your money ( which is mines ) to work for her. That is owning the land, building on it and renting it out. Today she owns and receive rent for 4 units at 15,000 baht a pop and another 60,000 from 7/11 right on Siam Country Club road.

Next final project 2 rai of land on Siam Country. She finally learn soon she will not need me any longer.

I'm not downgrading your opinion but don't downgrade mines because it is negative. I do not look down at Thai people and know they are hard honest working people but if you are going to do something for them don't let your love for them blind you. You wouldn't never allow this in the west where majority of you come from so why would Thailand be any different. The Thais that have money in this country think the same way. This is a easier way so show it to them.

Thailand 49 makes some very good points. One area I think he is (and another poster) very conservative on is the cost of stock.

So Op if you go the own convenience store route I strongly suggest you don't underestimate the initial cost of stocking the shop and keeping it stocked with what sells - which will take a while to find out. Especially if you are going to sell alcohol. My gf's parents decided to add groceries to a cooking operation and sell more alcohol. As they are opposite a new hospital certain baby products as well. Basically to get everything filled up (especially the fridge) and keep it filled took an initial outlay of over 150,000 baht. Think multiple cases of beer, whisky and the ubiquitous Thai "energy" (pick me ups) drinks of various brands.

Whatever you do best of luck.

[thailand49]

Sorry too? In all due respect it never amaze me how people read the negatives in GENERAL and get offended and start to talk about bitching and stuff instead except that our opinions come from some experience. Many of the negative stuff I and many here which is in the majority as always come not only from us but from Thai scholars themselves who have written articles and books regarding many of the negative stuff we are talking about. So it is not only us bitching?

There are success stories and failures in everything and being negative doesn't mean we dismiss your success story. For myself, I like the fact that I have risen the standard of living for my Thai family. The smile on her mother face says it all to me that whatever I had given to them makes live easier for them. But down deep things here have humble me down to my core because I was footing the bill like the most of you but it does not mean we should take the lost without a opinion. And giving a honest opinion and teaching them constructive criticism is good and not always just loosing face! That when I have a opinion not to just say this is Thailand as if opening a business is different here. What is different which I like many things I do not pay much taxes, so much one can just hide. My Corporation is just a front.

Let me ask you about your green plug,,, do you even have a baseline prior to the green plug to make such a statement? I have gone to lots of so call wholesale warehouse to buy stuff being sold in mini mart and rarely do you ever get such a discount even at Makro that would be worth the time in the west to be selling? Wholesale bag of chips for example 4 baht even if you buy bulk and you sell it at a mini mart for 5 baht, you sit there for hours to make 1 baht off a bag of chip?

Here is a example... I allow my wife to open her mini mart just to get it out of her system. Inventory for example 20,000 baht, 25,000 freezer etc... after a month... she makes 15,000 baht.. she smiles.. but forget one major item like Thais do? Not because they are bad because they have never been taught. She forgets sitting there 12 hours a day etc... Payroll! which in Business 101 is pay yourself first 30% so what is left not much and guess who footing the electric bill which has increase to 4,000 baht. To be honest I rather I just give her the 4,000 baht. To me that is chump change but love is blind like it has blinded you. I spend tha tin 30 minutes in a Go Go at night. It is chump change but I do it like you to make them happy. But dig deep open the books if they do not loose face and you will see it is a waste of time.

It has taken years for her to finally really listen to me and get it out of her system with all the failures from listening to other Thais who benefit from spreading miss information! This leads me back to the topic! One day my wife said we should buy a 7/11, told me a Thai representative came to her and said you can clear a 100,000 baht a month? I said out loud " No way " she got offended back to you do not want to try this is Thailand stuff. I did the research and check a forum that had former owners of 7/11, now of course this is in Pattaya, when people started buying them yes one could make and clear 100,000 baht, but today with so many it is rare but you still got people selling this old example. When I did year ago research it was something like 2,5 million for one for 8 years ownership. If one can really clear without lifting a finger 100,000 everyone would sell their mothers to get one. At 100,000 baht x12 = 1,200.000 baht a year? after 2 years it is all profit? who in their right minds wouldn't do it? but many only clear 20,000 baht so do the math, in eight years you haven't gotten you original investment back. This is why many in Pattaya you see renovation being done because the old owner has not taken the option to renew their 8 years.

My job with my wife is to make sure since I have brought her from zero to what she has today if I die to maintain on her own the quality of life she enjoys today. What I have given her and taught her since she listen and see it first hand that instead of working, let your money ( which is mines ) to work for her. That is owning the land, building on it and renting it out. Today she owns and receive rent for 4 units at 15,000 baht a pop and another 60,000 from 7/11 right on Siam Country Club road.

Next final project 2 rai of land on Siam Country. She finally learn soon she will not need me any longer.

I'm not downgrading your opinion but don't downgrade mines because it is negative. I do not look down at Thai people and know they are hard honest working people but if you are going to do something for them don't let your love for them blind you. You wouldn't never allow this in the west where majority of you come from so why would Thailand be any different. The Thais that have money in this country think the same way. This is a easier way so show it to them.

Thailand 49 makes some very good points. One area I think he is (and another poster) very conservative on is the cost of stock.

So Op if you go the own convenience store route I strongly suggest you don't underestimate the initial cost of stocking the shop and keeping it stocked with what sells - which will take a while to find out. Especially if you are going to sell alcohol. My gf's parents decided to add groceries to a cooking operation and sell more alcohol. As they are opposite a new hospital certain baby products as well. Basically to get everything filled up (especially the fridge) and keep it filled took an initial outlay of over 150,000 baht. Think multiple cases of beer, whisky and the ubiquitous Thai "energy" (pick me ups) drinks of various brands.

Whatever you do best of luck.

Conservative yes! but your example is rare from my experience. The majority of the little mini-mart you see can't and never will even put a dent into the operation of 7/11, To 7/11 it doesn't even exist. From my post if you read carefully I do not have a problem with a family doing what you are doing as I commend you and your family for added the additional service but this is the proper way to go. But if one dig deep and put their support aside and look at the books objectively you will see something is missing and that is usually your support like ownership of the property, wages, utilities? something they are not paying for the operation? You mentioned stock of 150,000 baht, that certainly does not come from your Thai wive or her family. And is that being paid back monthly to you or anyone like a loan. Disregard whether you want it back or not?

As I've stated, if you are footing the bill, and based on the BM question, in my opinion the investment should go to owning land and building on it with plans to build unit and space in a location where someone like 7/11 might come calling to rent. That again is your anchor tenant and that is constant money revenue! Then you can keep a unit for yourself right next to 7/11, do your cooking whatever with your family and let 7/11 do the buying for you.

I did a plan for a Thai friend and his family. I was a regular at their place and became friends. I help first with having their Thai menu translated to English. They were barely making it, good food but bad location so found them a location barely used lots of turn over across from a 7/11, His first month he made more money he had made nearly a entire year at his old location. In regards to stock he carried the most popular item. I told him instead of buying a freezer get a display case and just present the items, get a Thai cooler and regular ice delivery and keep your drinks chill the best and old fashion way. What I call Thai style! Keep you output low! Let 7/11 stock it and whenever he needs something someone runs over to 7/11. He also was waking up early taking his son to school and do short orders for Thais in the morning / afternoon, I got him to invest in a use coffee machine / showed him how to make simple coffee drinks and offer some western breakfast items. He was cooking his butt off for 35 baht like noodles etc.. he charges 40 baht for a good cup of coffee, he averages about a 100 baht a expat customer double what he makes from a Thai. But never forget you need everyone!

Why try to complete? That is the point I'm trying to make! If lucky and 7/11 wants your place. Every first of the month look at your bank account automatic deposited. You need do nothing each month except sleep and wake up with the 50,000 60,000 baht in rent.. Your Thai family can do whatever they want even if they want and sit for 16 hours cooking etc..

Hey do what is best for yourself! I've said more than my peace! good luck everyone Happy New Year!

Edited January 5, 2015 by thailand49

[BKKdreaming]

Some very good ideas

a few days ago there was a story on Japanese TV about "sari sari" small at home markets in the Phillipines

do a google search and there is lots of information about what to sell , some of these ideas will also work in Thailand ,

They sell laundry detergent one load pack at a time , cooking oil , sugar , coffee in one use packets

It looks like the Philipines is much poorer that Thailand ,

They also teach "basic business" to the ladies who own the shops , probably a good idea to do in Thailand too

Check it out...