A convenience store empire has announced plans to open hundreds of new stores across the country in a dramatic shake-up of its business plan.
Popular convenience store chain 7-Eleven aims to open more than 600 food and beverage-focused locations in the United States, according to an investor presentation from its parent company Seven & i Holdings.
7-Eleven CEO Joseph DePinto described them as “more contemporary facilities” with “a greater variety of products and a greater range of food and drinks than in other places during the presentation.
The new locations will also offer what is called a New Standard format, which will feature expanded food options, digital offerings and more fuel pumps.
The announcement of these new US locations expected to open between 2025 and 2027 comes shortly after 7-Eleven revealed it would close 444 locations in North America due to inflation and a decline in demand for cigarettes.
7-Eleven will open more than 600 stores in the US between 2025 and 2027
Despite the closures, the convenience store chain found that its stores with the New Standard already in place have earned more revenue than existing locations.
Experts also found that existing stores without the format made about $5,500 in average sales during the first half of 2024.
They also found that 7-Eleven locations with the new format generated $6,300 in average sales each day, a 13 percent increase compared to their existing stores.
If everything goes according to plan, 115 7-Eleven stores will be open by the end of this year, 125 in 2025, 175 in 2026 and 200 in 2027, for a total of 615 New Standard format stores.
‘In our Evolution stores, the response we received from our customers was quite simple. That’s why we build these stores with our customers’ feelings in mind,” DePinto said in a investor call.
“We are projecting that at full maturity, four years, these new standard store sales will further increase by 30 percent to $8,219 on average per store day.”
One of the 7-Eleven brands that has already played an integral role in the convenience store chain’s growth is Laredo Taco Co.
7-Eleven acquired more than 200 Laredo Taco Co restaurants earlier this year in the US and its food is expected to be part of the New Standard format.
Other restaurants the company is investing in include Speedy Café and Raise the Roost Chicken and Biscuits.
The new locations will also offer what’s called a New Standard format, which will feature expanded food options, digital offerings and more fuel pumps.
7-Eleven acquired more than 200 Laredo Taco Co restaurants earlier this year in the US.
“The North American economy remained generally strong thanks to the consumption of high-income earners, despite persistent inflation, high interest rates and a deteriorating employment environment,” the company said in a statement. earnings report.
“In this context, there was a more cautious approach to consumption, particularly among low- and middle-income people.”
The company explained its growth strategy as “(expanding) business scale globally by leveraging strengths in the food sector.”
“7-Eleven’s current share of the foodservice market is relatively small in the scheme of the entire category,” retail expert Neil Saunders of Global Data told DailyMail.com.
7-Eleven previously announced it would close 444 locations in North America.
‘It also focuses on more basic food and drink. Therefore, it has a great opportunity for growth.”
The retail expert added that what customers are looking for today is “better options and higher products.”
‘The days of simply offering some dry hot dogs under a heat lamp aren’t going to cut it for modern tastes. That’s why 7-Eleven is developing a new format that has a wider range and more exclusive selection of foodservice products,” Saunders wrote.
‘Basically, we hope to become a destination for both quick pick-ups and more considered dining. However, opening the stores is one thing. Changing perceptions is another matter, and this may take some time.’
The company explained its growth strategy as ‘(expanding) business scale globally by taking advantage of strengths in food’
7-Eleven currently has more than 13,000 locations in the United States and Canada and is in 47 of the top 50 markets.
“These 13,000 stores are located within two miles of 51 percent of the U.S. population, allowing us to be where our customers are and providing us with an unmatched last-mile distribution network,” DePinto said.
“And we’re not done yet, we have a lot of room to grow.”