7-Eleven Convenience Store Franchise in the Philippines

There is an inconvenient truth that says Filipinos has fewer access to convenient stores.  This is what Nielsen, a market-research company have found out in 2012.  The number says that one (1) convenient store is reached by forty thousand (40,000) Filipinos while in South Korea and Taiwan the ratio is 1 in every 2000 people.  Do the math and surely, you will rush yourself finding the right convenient store that will be built in your community.  Thus, now is the time to fill in the gaps as there are roughly about 90 Million Filipinos out there waiting to avail of the mini-grocer.  The country is very ripe to bring in the convenient stores competition and get their fair share in the market as well.  With the right location, staff and community, surely business will prosper and rising income is a not a question but a given.

Moreover, 7-Eleven is a brand that is synonymous to convenience stores.  Hence, if there is a need to build it in a prime location, 7-Eleven is the best option and surely it will be a household name in the vicinity.

The 7-Eleven Story

It all started with the thought of convenience retailing.  The founder of this concept thought that it would be best if there are available small packs of important goods in a store that is convenient for the people in the community to get any time of the day.  So,  “Uncle Johnny” Jefferson Green, a Southland Ice Company employee tried to sell these goods during weekends when grocery stores are closed.  Joe C. Thompson Jr. on the other hand saw this as an opportunity and expanded the concept and tried to open other retailing stores to other locations.  Moreover, Thompson later became the president of Southland Corporation, the owner of 7-Eleven stores.  The store was originally named as Tote’m stores because of the thought that customers “toted” away their purchases.  Then in 1946, they changed the name to 7-Eleven to reflect the store hours which is from 7 a.m. to 11 p.m. and is operating seven days a week.  The success of this idea flourished and it became a “mom-and-pop” neighborhood grocery store, the “ice-house,” the dairy store, the supermarket and the delicatessen all in one location. With this, 7-Eleven became an instant hit and expanded not only the the US but in other countries as well.

In the Philippines, the license to operate 7-Eleven stores in the Philippines was granted to The Philippine Seven Corporation in December 13, 1982. It was in February 29, 1984 that the first 7-Eleven store was opened and is located at the corner of Kamias Road and EDSA Quezon City, Metro Manila.  It slowly gained popularity in its few years being in the country.  But in the last three years, it boomed and whenever you go, a 7-eleven convenience store is available or soon to rise.

As of July 2016, there are about 1,741 units or stores all over the country

7-Eleven Franchise Details

The Franchise System

The 7-Eleven franchise system is a unique system in terms of its royalty payments.  The common practice is that there is a given percentage of sales.  With 7-Eleven, royalties are paid upon the store’s gross profit (net sales receipt less wholesale cost of the merchandise you sell).  This gives the franchisee the most of profitables sales rather than just sales.  Thus higher financial return to the franchisee.

The Franchisee Qualifications

Ideally, interested candidates should have these three qualifications (1) personal qualities, (2) professional experience and (3) financial standing

The Franchise Application Time Frame

It takes about six (6) months to about a year to complete the entire process of becoming a franchise.  This all depends on the speed of the building construction, releasing of permits and licenses and provision of utilities.

The Initial Investment

Franchise fee is P600,000.00 and should be paid upon approval of the application

Initial store supplies amount to P170,000.00

Initial merchandise amounts to P800,000.00

Construction cost amounts to approximately P2,000,000.00

Advance Rent and Deposit should be settled before the opening of the store

Total Cash Outlay ranges from P3.7 Million Pesos to P5 Million Pesos

The franchise fee is fix but the investment fees are just an estimate depending on the store location and other needs. All pre-operating expenses are shouldered by the franchisee such as rent, utilities, security guard and other administrative expenses.   Take note that all amounts are VAT exclusive.

The Franchise Process

1. Complete the online inquiry form and briefing franchise every Mondays and Thursdays at their Manila office with address below for your reference
2. Its pre-qualification requirement is the site location.  Your site must be ready for evaluation.
3. Your business plan must be prepared to assess the ability of your store
4. Now you are ready for the three (3) level panel interview with the approval committee.
5. If you pass the interview, there is the signing of the Memorandum of Agreement to ensure that both parties fully understand what 7-Eleven franchise is all about
6. Prepare for training for about a month
7. Ready for store opening

Advantages of the 7-Eleven Franchise

• The 7-Eleven Brand is a global icon and is known locally and internationally

• The company provides training program.  There is a comprehensive franchise training program for four (4) weeks
• It also provides bookkeeping assistance.  This includes reports and store audits
• It offers assistance to property and equipment.  This includes equipment maintenance and replacement if deemed necessary
• It offers counseling services.  A field consultant is assigned to you for weekly meetings

• It provides promotional activities.  There is a monthly thematic promotions and materials are made available

If you do not have access to the internet, please contact Philippine Seven Corporation and an application will be forwarded to you.

Disadvantages of the 7-Eleven Franchise

• Location is the crucial concern
• The franchisee needs to work and be visible in the day to day operations

Contact Information

The Franchise Manager

Philippine Seven Corporation

7th Floor, Columbia Tower,

Ortigas Ave., near corner EDSA,

Mandaluyong City

Philippines

Hotline: +63 (02)726-9968

Fax : +63 (02)705-5229

Mobile : +63 (920)950-8651; +63 (917)871-1686

email: franchising@7-eleven.com.ph