7-Eleven: Top Convenience Store Franchise Business in the Philippines
Success stories of big companies may sound passe. But when successful companies scatter their entrepreneurial victory to budding businessmen, the story becomes more than interesting, it becomes doubly inspiring. Such is the story of Philippine Seven Corporation who continues to bring Filipino entrepreneurs to the limelight as partners in the growing network of convenience stores — the 7-Eleven.
Philippine Seven Corporation is a public company co-owned by Seven Eleven Taiwan, the Paterno family, and a local group of shareholders. It was established in 1982 and its first store was put up in 1984 at the corner of EDSA and Kamias St in Quezon City.
As testament to its robust growth, Philippine Seven Corporation now has 285 stores, of which 110 are franchised stores.
Lee Perez, Franchise Marketing Manager said with franchising, the company hit two birds in one stone: the attainment of the corporation’s objective; and the fulfillment of customers’ needs.
“Aside from being the company direction, it was found that franchisees serve the customers better than company run stores. This fact stems from their accountability and ownership of the investment, pushing them to add an extra mile in customer service, store management, and overall store performance,” Perez said.
7-Eleven started franchising in 1998 through the conversion of an existing bakery to a franchised store.
“We were slow at first, building up to 3-5 franchisees per year. In 2005, we fully launched the program awarding as many as 30 stores per year,” Perez said.
7-Eleven has a seven-step application process for franchise: signify their interest via letter of intent; attend the franchise briefing; formulate the business plan; pass the panel interview; training; pre-opening preparation; and opening of the franchise store. The store is run by a nine-man standard team to cover three shifts in 24 hours.
While the location of business spells out the success or failure of business holds true for the franchise network of convenience stores, this fact is even stronger for 7-Eleven.
“Location is the primary concern in any business. And for convenience stores, it is life. A miscalculation usually leads to disastrous results for both the headquarters and the franchisee. With this in mind, 7-Eleven must evaluate the franchisee’s location before furthering their application,” Perez said.
“I personally think that we shouldn’t choose locations, rather we match locations with our business. With this in mind, we are able to expand our markets and explore new ones as well. Rather than paying the overpriced mall space, business should take a good look at their target market and match their locations accordingly,” he added.
The franchise fee of 7-Eleven would costs around P3 to 3.5 million for new stores, while existing stores would cost around 4 million and up.
“We project return on investment in three years. On the average, the franchisee nets around P80,000 per month. But everything depends on the franchisee’s performance and how he runs the store,” Perez said.
He also noted that 7-Eleven’s franchise package spells out the company’s competitive edge.
“Our franchise package has numerous benefits to our franchisees: We either evaluate the franchisees’ submitted new store location, or we can assign them existing stores to be franchises (bigger advantage as we have sales and performance data already); seven-week classroom and in-store training; opening support, which includes promo budget, store management shadowing, and opening team,” Perez said.
He added that the franchise package also features same day order and delivery of stocks since the stores have a high turnover rate for merchandise; bookkeeping and audit services to the franchisee; and 24-hour store support hotline for issues such as equipment breakdown.
Perez also said the franchise business offers several advantages, namely: turnkey operation; brand equity; support; migration of risk as both franchisor and franchisee invest in the venture; and more efficient management and operation for both franchisor and franchisee.
To further strengthen its network of convenience stores, 7-Eleven recently launched the Property Conversion Franchise System to encourage businessmen who already have their own businesses, such as owners of small groceries, to explore new income-generating businesses.
Just like the neighborhood 7-Eleven store, Philippine Seven Corporation continues to innovate the ways and means to strengthen its network and serve customers, 24 hours a day, seven days a week.
About Carina Roncesvalles: Carina Roncesvalles is a Journalism graduate from the University of the Philippines in Diliman. Carina has worked as a Reporter for BusinessWorld. She is nowworking as a full-time writer for a Makati-based public relations company.
41 Responses to “7-Eleven: Top Convenience Store Franchise Business in the Philippines”
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I heard about your plan of tapping overseas contract workers or overseas filifinos as possible investors.I’m am curently an overseas contract workers in canada soon to be immigrant.why don’t you make an appointment to meet filipinos in Canada.I figure out you’re going to convince a lot of filipinos here to invest.I think its time filipinos invest in their own country.By the way im in Montreal
Paano naman kame mga middle class interesado kame pwero baka naman kame kulngan or magkaroon ng problem sa bangko dhil sa laki ng interest
pwede pa bang babaan ang franchise fee?
hope u will give an oppurtunity to people who work abroad like me i live here in new york but willing to invest there in philippines!!!!!
HI,
Intresado sana ako , do you havean installment basis or paymeny scheme for the franchise fee. Its toohigh for me
Im a fil-am currently living in the states and planning to stay in the philippines in a bout a year and thinking of franchising a 7 eleven store. How do i go by doing that, your response will be greatly appreciated. thank you!
Hi,
interesado kmi kya lang mdyo mataas ang franchise fee po bka may set of scheme na pwede kyong gwin kagaya ng installment for the franchise
and how much do you think d store wil cost? i mean d building and equipments
hi, im really interested to put up a franchise of a convenient store. kaso po the investment fee is to high..is their any chance na bumaba ito..well sa nakikita ko po kc mostly ang mga ofw ang mga interesado rito sana me mga program kayo para saamin na gusto mag negosyo nito…tnx alot i hope to hear some feed back from your company..thank you
Hi! I’m interested in franchising a 7 eleven convenient store. I just want to know what are the steps for applying. and meron kc kmi lupa na i think pwede sha itayo dun. And the payment scheme, pano din kaya?
hi
could you please send me a detailed cost breakdown of franchise fee of 7-eleven. it’s really essential for us so that we can start this business.
thank you
I am a retired fil=am and I would like to go home and start
a business in the Philippines to help my people.
My properties in the Philippines maybe could be used as
collateral to get a loan to start a Seven-Eleven Store.Is
there a bank that could give a loan for this project, and
what is the name of the bank ? Please give me an advice
regarding this plan.
I’m interested in francising a convenient store in Negros Oriental, PI. I’d have to get a loan from one of the banks over there and use our property as colateral. It would be a great pleasure to work with you people. Your response will be greatly appreciated. Thanks a million!
how much ang franchise fee?
Hi! I owned a new 2,000 sq. meter building space for lease but unfortuntely, my priority is your company will rent the vacancy rather than to franchising it. Will it be possible? I will be available anytime and I will show it to you my location. Thanks!
hi,you might be interested or knows someone who who would like to open a branch at Sta. Cruz, laguna. we are opening a commercial bldg for rent or lease. just across the capitolyo, near hospitals, school and offices.
thanks
any plans of putting a franchise in Bacolod City?
Bacolod is really booming and a highly urbanized city,
hope to see a 7-Eleven store sana.
pls. reply…
thanks
hi,
like the others want, i am wondering if you have on installment like yearly if not possible the monthly scheme?
thank you
Hi could you please send me some information with regards to a frenchise in the 7 eleven convenient store in the philippines
Kind regards
Steve
panu poh b ung mode of payment ng franchise fee?!?! pls give me more infos….
Hello
Can you send me your contact number and full information about franchising 7 eleven, Because I am interested to franchise..
Thanks
can you give me a brief info on how do start bus. like 7-11?
is it good to open more franchise here in Nueva Ecija?
tnx
my husband & i are very much willing to franchise 7 eleven in our home town, could you give us the contact persons and details regarding franchising,the terms and conditions regarding this business.
thanks & more power…
hi! my sister and i are intrested sana to franchise? or do u have plans of opening a branch in our place at La Trinidad, Benguet? We saw at least 2 or 3 branches in Baguio City and how about in La Trinidad?
How is the mode of payment for the franchisee fee? Is installament accepted? pls tell me more about it?
Gud day sir I’m planning to apply in your company for a franchise, the question is could it be possible here in Tacloban City and how about the scheme of application and procedures and please send me the guidelines on how to apply…
Thank you
Hi! Im interested too… Im from cavite. please give me someone who i need to call. thanks!
Hi,
I would like to open up a 7-11 store, what are the requirements to be able to Franchise.
I am currently working in Canada but I am from Batangas City.
Hi,
I am planning to to open a 711-Store here in Mindanao,General Santos City, please send me more information on how to apply for a franchising scheme.
I am hoping to hear from you soon.
Many thanks,
Ms Emm
Hi,
I’ve been staying in Cebu for almost 3 yrs and been in so many places in here, but i have not seen any of your stores anywhere. Is there any restrictions for not being available here in Cebu?
Hi,
I am planning to to open a 711-Store here in Mindanao,General Santos City, please send me more information on how to apply for a franchising scheme.
I am hoping to hear from you soon.
thank you and more power to your company….
Hi,
I am planning to to open a 711-Store here in Calaca Batangas, please send me more information on how to apply for a franchising scheme.Contact person. thank you very much
I am hoping to hear from you soon.
thank you and more power to your company….
Hi!i just want to know how much will be the minimum capital for franchising 7eleven stores?thank you!!!
I have a paid-up brand new condominium in Manila worth
3.50M could I use it as collateral loan to the bank in phil
so I can afford your franchise fee.
I want to retire in the Philippines that’s why i want to
franchise 711 conv. grocery
Do you have any available very good location within Metro Manila or closer to Manila.
Could you give me the total investment cost. Pls ASAP
Looking Forward Thanks
Lito from Canada
Hi…
I am from Davao. I would like to know how big should a location be for a seven 11 store. And what are the requirements, and what does the stated 3 to 3.5Million covers? What other requirements and expenses the business owner would have to cover at her own cost?
I would like to know how big should a location be for a seven 11 store. And what are the requirements, and what does the stated 3 to 3.5Million covers? What other requirements and expenses the business owner would have to cover at her own cost?
I am from Dumaguete City and I own a 1000 sq.m property that is a corner lot, along the national highway. It is 50 meters from the Negros Oriental Provincial Hospital, 100 meters to the Hall of Justice, 50 meters from GSIS office and right across Mercury Drug Store. I am interested in Seven Eleven since I feel that there is already a need in our city. How do I go about this?
Hi,I’m currently working outside the Philippines but I am very interested in opening a franchise somewhere in Laguna as a start=up business and I think 7-11 is one of the best franchises to start with. Like anybody else who posted their comments here, franchising fee is the main issue.is there any way we can loan for this said fee so that I can start this business right away. I am very interested with this idea of putting up a 7-11 store in our area in Laguna which I feel will succeed. Please e-mail me thru logan_22_ph@yahoo.com for any suggestion regarding the mode of payment for the franchise fee and how to make a loan for us to jumpstart this investment.would be extremely happy for your response. thanks
hi good day! i would like to know if you could give me info on how to get into your store, i want to sell cigarette from korea, made here in the philippines..its not yet out in the market, hope you could sell our product.
hi, i would like to ask if you have installment scheme for the franchise fee? can you give me a sample schedule? Is there any location that you suggest within metro manila. thanks a lot.
I AM WILLING TO FRANCHISE YOUR SEVEN ELEVEN CONVENIENT STORE KINDLY SEND ME THE PROCEDURE AND LIST OF REQUIREMENT AND CAPITAL REQUIREMENT.
GOOD DAY AND GOD BLESS.
I’m interested din po sa franchising ng convenient store nyo,gusto ko na rin kasing mag stay dyan sa bansa natin at mag-business na lang,but i just want to know the full details of franchising,maraming salamat po.
how much your franchising fee? pls. send me ur list of details and requirements. thanks