Wednesday, September 16, 2009

The Retail food chain store footprint paradigm is in flux, the move is for success.

7 Eleven announced plans to grow two years an ago with plans to open new units in the Northeast and West. What has been noted but not heralded was how? 7 Eleven has been a sleeping giant for the much of the past decade. Stuck in the confluence of the “Dallas foodservice leadership syndrome “; that’s where so many companies are headquarter and few new ideations have originated. There has been a revolving door of management leaders in Dallas, they leave one company and cross the street to another. The results of all are very similar, from footprint, menu, themes and service and margins both up & down. Investor are now getting beginning to see the pattern.
What has changed is 7 Eleven was acquired by a Japanese franchisee with outside eyes and plan that worked. Currently they are looking not just at opening new units but want locations run by franchisee of competitors! Converting competitors units into new 7 Elevens with proven operators, proven locations and track record of success. How long can it be that US based burger chains start doing the same thing? What if they offered, lower product cost of higher quality brand product, lower fee’s, higher ROI based on stronger brand value? 7 Eleven can boast of the quality of fresh food experience they have had in Asia and current new offering that will bring same on par with current leaders in the niche. In addition they are in test with fresh food product that reportedly are driving per unit sale up 30%. Yes, times they are a changing and what is changing is the gloves are coming off and franchisee’s are in play from Steak houses too Taco trucks and Fern bars too burger joints. What do you have to offer some one else? Restaurants, Grocery stores and Supermarkets in the middle of any niche are now in play

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