How to open a 7/11?

[TheCruncher]

It will cost you approx 2 million to open one and you need a good location with good potential customer traffic and a minimum of 6 months operating costs in the bank.

You can not be within a certain distance from another franchisee, but 7/11 can open a managed one right next door to you (I will get back to this).

About 2 million is for the franchise fee and another million for 6 months operating costs.

They tell you what to stock and what you pay staff.

They will train your manager.

You pay them a cut of everything you sell and they know exactly what you are making... If you make more than 80,000 baht profit a month for yourself after all costs (and they know) they will put another very near you, and this will likely be a managed store and they can literally open next door, but if they set up another franchise near you, they will locate it something like 300 M away.

the franchisee needs to be a Thai citizen.

There is also a minimum size restricion on the property.

That is all I can remember off the top of my head.

I believe there are well over 20,000 outlets in Thailand.... You are much better off developing a cheap 20 baht snack that you can produce for about 4 baht and get 7/11 to stock it... They take 25% cut and will distribute it across their stores., the product needs to sell a minimum of 100 units per month, if it falls below that amount more than 3 months in a row in any particular store,m it is withdrawn (from THAT store).

A much cheaper way start doing business with 7/11, and you make a hell of a lot more money than buying into a controlled franchise, with more headaches and a lot more work.

No there aren't 20.000 outlets, there are 8.465 outlets.

So let's say you create a snack that is stocked by 7/11. Very small chance in my opinion.

Now that is 8.465 shops x 100 snacks minimum per month or a minimum of 800.465 snacks to produce each month.

How do you do that with a minimum investment, and much less headaches and work than a franchise?

[Ks45672]

It will cost you approx 2 million to open one and you need a good location with good potential customer traffic and a minimum of 6 months operating costs in the bank.

You can not be within a certain distance from another franchisee, but 7/11 can open a managed one right next door to you (I will get back to this).

About 2 million is for the franchise fee and another million for 6 months operating costs.

They tell you what to stock and what you pay staff.

They will train your manager.

You pay them a cut of everything you sell and they know exactly what you are making... If you make more than 80,000 baht profit a month for yourself after all costs (and they know) they will put another very near you, and this will likely be a managed store and they can literally open next door, but if they set up another franchise near you, they will locate it something like 300 M away.

the franchisee needs to be a Thai citizen.

There is also a minimum size restricion on the property.

That is all I can remember off the top of my head.

I believe there are well over 20,000 outlets in Thailand.... You are much better off developing a cheap 20 baht snack that you can produce for about 4 baht and get 7/11 to stock it... They take 25% cut and will distribute it across their stores., the product needs to sell a minimum of 100 units per month, if it falls below that amount more than 3 months in a row in any particular store,m it is withdrawn (from THAT store).

A much cheaper way start doing business with 7/11, and you make a hell of a lot more money than buying into a controlled franchise, with more headaches and a lot more work.

No there aren't 20.000 outlets, there are 8.465 outlets.

So let's say you create a snack that is stocked by 7/11. Very small chance in my opinion.

Now that is 8.465 shops x 100 snacks minimum per month or a minimum of 800.465 snacks to produce each month.

How do you do that with a minimum investment, and much less headaches and work than a franchise?

Any snack you could produce cheaper than the likes of cp would not be fit for human consumption or the ingredients would cost more than the total price of the snack....

A toasted ham and cheese sandwich is 27thb

A hamburger with bacon and cheese and ketchup is 39thb, even less for a "chicken fillet burger" which is around 35 i think

You can not dance with the big boys and expect to come out on top,the economy of scale is too large to overcome

What snack will be edible to Thais and cheaper than that ?

Even if you somehow had free ingredients I think you would struggle to compete against those odds...

[steven100]

10 mil and +

[Robert24]

I have previously looked into both a 7/11 and opening a small store independently. I didn't proceed on either one mainly for the following reasons:

1) location. All the good locations already had 7/11 and small stores.

2) very competitive. There are thousands of these small stores everywhere in addition to all the 7/11s.

3) returns are low even if you are successful. Add up all the costs from rent, employees, electricity etc and you will see that you have to sell a lot every day to just break even.

I think there are better businesses to look into. Look into trends evolving in a country that has a growing middle class with more disposable income. I.e. Health related stuff, from food over Sport trends, gym etc.

[Berkshire]

Franchise's are just fancy ways of making someone else rich. Open your own convenience market in a moderate traffic location and you will do better than splitting all your profits with some rich dude who you will never meet. Pay your own rent, stock your own shelves, keep ALL your profits.

The reason franchises are less risky than starting your own business is the name recognition. That 7/11 sign is like a magnet that brings people in. The reason there are so many in Thailand is because they make money. You may not make huge money (unless you own several dozen), but it's a pretty safe investment...compared to, say, a bar or even a restaurant. If you owned your own convenience store and someone opens a 7/11 right next to you, bye bye because that's where people will go. Yes, there are 7/11's all over the place (I've seen locations where there are 2 or 3 pretty close together). That's just good for consumers.

[Bigfarang1948]

Call it 7.30/11.30 and avoid franchise costs.

Seriously, I know nothing about how 7/11 operates in Thailand but they're in deep $ hit in Australia. A franchisee can't make money unless he operates illegally, way underpaying workers, etc., and the master franchise owner just quit as CEO, under investigation by several government departments.Look closely.

Opening a bar would probably be less problematic. No mattter what you decide, you are going to get ripped off by so many people in the process you won't believe it. You actually think you can trust someone to run a business that is NOT in your name and you call the shots?