One of my favorite memories from while I was growing up ws being a senior in high school with a new driver’s license. My friends and I would take turns leaving campus (back when you could do these things) during our free periods and running up to the local 7-Eleven to bring back snacks and beverages. I always got a French vanilla cappuccino. We all felt so grown-up, ha. When I moved to the South, 7-Elevens weren’t a thing in my area, and now I only go every once in a while when I visit my family back on Long Island.
It looks like 7-Eleven’s days of hyping up teenagers over Slurpees and flavored cappuccinos may be behind them. Last week, 7-Eleven’s president and CEO announced that the company plans to close 444 “underperforming stores” across the United States and Canada. No locations have been released just yet, and this makes 3% of their total 13,000 stores across North America. As it turns out, one of the biggest reasons for their struggling profits is less sales thanks to inflation, but specifically in a decline in cigarette sales! 7-Eleven has seen an increase in food sales as cigarette sales has declined, so now they’re leaning into “high-quality” food.
7-Eleven President and CEO Joe DePinto announced during a Thursday, Oct. 10 earnings call that the company will shut down 444 “underperforming stores,” according to the Seeking Alpha Oct. 11 transcript. However, the exact locations were not released. The company has over 13,000 stores across North America, meaning only 3% of its stores will be closed, per CNN.
“Aligned with our long-term growth strategy, we continuously review and optimize our portfolio to deliver convenience where, when, and how customers need it,” a spokesperson for 7-Eleven told TODAY.com. “As part of this, we made the decision to optimize a number of non-core assets that do not fit into our growth strategy. At the same time, we continue to open stores in areas where customers are looking for more convenience.”
The convenience chain, owned by the Japanese company Seven & I Holdings, faced a “challenging” first half of 2024 and is experiencing the same inflationary pressures as restaurants, as well as a decrease in traffic. Additionally, the convenience market has noticed a decline in demand for cigarettes. “From January to June, we gradually improved sales each month… excluding cigarettes,” DePinto said, according to Seeking Alpha. The sales of cigarettes has gone down by 26% in the past five years, with smokers either opting for other nicotine products or quitting.
“Food recently overtook cigarettes as the largest category at 7-Eleven Inc.,” DePinto revealed. As a result, the company is ready to pivot and will provide customers with “high-quality food and services.”
“Growing our proprietary products is an important part of our future. This platform offers our customers a wider assortment of hot food and specialty beverages,” DePinto said. The company intends to add bake-in-store items, self-serve roller grills, grab-and-go cases, espresso, cappuccino, iced coffee and lattes.
Its recent decision came one day after Reuters reported that Circle-K owner Alimentation Couche-Tard, increased its bid for the company by $8 billion, reaching a total of $47.2 billion.
It’s pretty cool/interesting that they’ve seen such a big decline in cigarette sales. I know, vaping probably is a big contributor to that, which also isn’t great. Anyway, I say this with the best-intentioned skepticism, but what on earth does “high-quality food” mean when it comes to 7-Eleven? Are they planning on serving Costco-level hot dogs or are they going to go the Sheetz route of “made to order?” Are they really bringing the class and serving lobster raviolis or something? Won’t actual high-quality foods raise prices? Oh! There’s actually a gas station about a half-hour from my house that is “famous” for its sushi. I’m not kidding! It regularly makes it on those email lists of best food in the area and people voted on it in one of those local newspapers. I keep meaning to check it out. In the meantime, the next time I visit my parents, I’m going to have to get one (potential) last French vanilla cappuccino for old times’ sake.
I absolutely hate the 7/11 experience in the US but am intrigued by this higher quality food. In contrast, the 7/11s in Japan have all sorts of fun and interesting snacks as well as onigiri (rice and seaweed rolls filled with one of plum, tuna, salmon or some other ingredient) which are perfect for lunch. If they can move in that direction – heck why not bring over those exact same option options to the US – I would actually shop in the US 7/11s for the first time in my life
Checkout the 7-11s in Hawaii. They have spam musubis, sushi, manapuas, pork hash, bentos, etc. I was so disappointed when I walked into a mainland 7-11 and realized you guys didn’t have any of the good stuff.
7-11s in the US are yuck tho teenage me loved them. 7-11s in Copenhagen are amazing and like little bodegas with fresh fruits and veggies.
During my first pregnancy back in the ’80s, I craved 7-11 chili dogs! Not so much since then.
Honestly, I don’t think they can compete with stores like Wawa and Sheetz.
I didn’t grow up with a 7-11, but I’ve lived down the street from one for a few years now, and I’m in and out at least once a week. Their food isn’t great right now, but honestly the pizza is decent for the price. I’d be intrigued by higher quality food… our fave fajita spot operates out of a gas station (Chevron, not 7-11), which I think is more of a thing in the south.
The 7/11’s in japan are amazing. Nothing like USA/Canada. They are like a really cool convenience store with great staples and quality food items, as well as tasty shelf snacks. So much variety. If they could bring more Japanese flair and maybe source some local goodies from wherever the convenience store is situated in North America, it will definitely appeal more to everyone.
If they start making North American 7-11’s more like the Japanese ones food-wise, that would be amazing!