7-Eleven Income Potential

So you’re thinking about buying a 7-Eleven and would like to know how much money you could make. 

Well, contrary to popular belief, 7-Eleven owners don’t typically make Hundreds of Thousands of Dollars.

What they make varies greatly on their individual store, but here are some rough estimates: 

To get a very rough idea of the income a 7-Eleven can produce, just take 5% of store sales.

  • So a store that does $1,300,000 in sales will make roughly $65,000.

For a slightly more accurate forecast, you will need the following key factors to determine the possible income:

  • Store sales
  • Store GP% - how much out of every dollar you actually keep (roughly 36%)
    • GP split with 7-eleven, 48-52 for the typical store (in favor of 7-Eleven) but will be worse if this is a high volume store, since your GP percent decreases as your total GP dollars increase.
  • Payroll (including taxes & benefits) – A rough guideline is about 9% of sales, but this will increase if you choose to have a full time manager, get more traffic, or sell a lot of coffee.
  • Other Expenses – A rough guideline is about 3% of sales, but could change significantly with inventory & cash shortages.

Based on these factors, a typical store without gasoline having sales of:

  • $900,000 *   36% GP * 49% split = $158,800 GP
    • - $108,000 expenses = $50,000 income
  • $1,300,000 * 36% GP * 48% split = $224,600 GP
    • - $156,000 expenses = $68,000 income
  • $2,000,000 * 36% GP * 47% split = $338,400 GP
    • - $240,000 expenses = $98,000 income

These are still rough numbers, but I would guesstimate that the standard deviation is about $10K, meaning that 95% of all 7-Eleven’s with the above sales will have incomes between $50K – $100K with a variation of +-$20,000 depending on the operations of the specific store. 

So the overall range for the income of a 7-Eleven (without gas), with sales between $900K – $2mm is between $30K –  $120K

If you are considering purchasing a 7-Eleven and would like unbiased answers to all of your questions as well as advice on specific store locations:

Contact me at: c-store-expert@greatconsult.com for a FREE e-mail consultation.

If you would like me to visit the particular location I will be able to provide you with a more exact estimate of the store’s income potential .

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66 Responses to “7-Eleven Income Potential”

  1. Saleem Khan Says:

    Dear Sir,
    Based on your estimates, which I am sure are close to reality, the rate of return on my investment actually dramatically DECREASES as the store sales increase:

    1) Below Average: Sales $900,000
    Investment:$156,600
    Income 5%: $45,000
    ROI: 45,000 / 156,600= 28%

    2) Average: sales $1,300,000
    Investment: $377,000
    Income: $ 65,000
    ROI: 65,000 / 377,000= 17%

    3) Above Average: Sales $2,000,000
    Investment: $ 710,000
    Income: $100,000
    ROI: 100,000 / 710,000= 14%

    I am sorry but this whole thing does not make sense. It goes opposite to the law of economies of scale. Could yoy please clarify?

    Saleem Khan

  2. cstoreguru Says:

    Saleem,

    You are absolutely right in your observation.
    There are two main factors that cause this phenomenon:

    1. In the current franchise agreement – as the gross profit dollars that a store produces increase, the split increases in favor of 7-Eleven Corporate. This is very similar to the US Tax system… The more you earn, the higher percent you are taxed.

    2. An increase in store sales will lead to an increase in store payroll (a franchisee’s biggest expense) , so it is easily possible for a $1.3mm store to be more profitable than a $1.4mm store (because you are forced to hire an additional employee around $1.3mm). Ofcourse as sales continue to grow, the profit they produce starts to overtake the payroll expense. It would be rare for a $1.6mm store to be less profitable than a $1.3mm.

    The last thing I didn’t include in the calculations was the number of hours that a franchisee would be putting in per week. For store #1, the franchisee would more than likely be working one shift themselves (while doing ordering, cleaning, or paperwork) thereby saving about $15K – $20K a year on payroll).

    Let me know if you have any other questions.

    • Lam Says:

      For store #1, how many hours does the franchisee generally work in one shift? Could you pls. clarify on how the franchisee can save on payroll? Can he put himself as an employee + franchise owner operator? When you said saving $15K- $20K a year on payroll will this increase to your estimate of $50K income for 900K sales? Thanking you for your reponse.

      • cstoreguru Says:

        Franchisee can work as many hours as they’d like … if that’s what you’re looking to do. The only other ways to save on payroll: hire good people, and train them well … or understaff your store and miss out on sales/profits. The amount of hours the franchisee works himself will go directly toward their bottom line. 20 hours per week on the register * $7/hour * 52 weeks in a year is over $7K in savings, but once you factor in payroll tax and more it’s more like $10K in savings per 20 hours/week worked. This only makes sense in low volume stores, where the franchisee can multi task working the register and doing other things such as ordering, or cash report.

  3. Jerry Medlock Says:

    Does your ROI analysis assume that you have the cash to put down as an investment rather than borrowed money?

    thanks

  4. cstoreguru Says:

    Jerry – The numbers I listed were just the profits you can expect from a 7-eleven with given sales and gp% … But in Saleem’s comment the ROI was calculated with 100% cash invested.

  5. T. Trotter Says:

    Dear Guru,

    You are way underestimating what a 7-eleven franchisee can make. I own 3 7-eleven franchises. Trust me, the potential for a husband wife team to make over 200k annually on a high volume store is very real.

    • cstoreguru Says:

      Dear Tony T.,

      I’m glad to hear that you have some great stores.

      You are correct that there are stores out there that are producing great income for franchisees… I’ve heard of some stores that make as much as 300K. Unfortunately those stores are few and far between. In the area I worked… out of 105 stores, the store with the highest income only generated 130K for the franchisee. Income varies tremendously on store location, gas, and other factors. The numbers I give are a general averages for the country and do not include income from gas, which can be very substantial in certain cases.

      7-Eleven is a great business, as long as you have the right skillset, temperament, and do your due dilligence before selecting a location.

    • Paolo Says:

      T. Trotter,

      I am about to become a 7-11 franchisee and would love to speak with you for a few minutes about your experiences. Is that possible?

      Thanks..

    • harman Says:

      High Volume… When you say high volume what figures you are talking about?
      What could a store doing 1.35m can make?

    • Anonymous Says:

      Thank you and you are absoloutly right. I dont give a care to any of the ROA or ROE, and I don’t know of it either, but this what I know that, if you want to make money out of it you can do it but if you are not a hard worker you wont do it anyway. I am in same kind of business and never calculated of income going out or coming in but one thing I know for sure I am making money with out having any consultant or a hight colleger degree.

  6. takashi Says:

    Need more information, i have emailed you on the email but didnt get any reply, please any help will be much help.
    by the way i love your articles.

    thanking you
    takashi

  7. Chris Says:

    Guru,
    Great articles. I really enjoy how you “tell it like it really is.” Trust me, after 16 yrs in the Marine Corps, I really appreciate that. I am entertaining the idea of buying into the 7 eleven franchise, and one of my question were; with a store with gasoline, how much more of a pain would that be to manage and is the return worth considering buying a franchise with gas pumps?

  8. Kevin Says:

    I really enjoyed this article, I would like to find more information like this in the near future. Specifically, experience and educated needed to open a 7 eleven franchise.

    Kevin

  9. Monam Says:

    Dear Team,

    My question is very simple, what is the process for the skilled immigrant to start his/her own 7 11 franchise???

    Regards,
    Monam

  10. hana Says:

    Hi what is the process for opening a 7-11 outside the US/ international?

  11. Jack Says:

    Good Evening,

    My name is Jack and I am currently creating a business plan for the purchase of a 7 Eleven on Flatbush Avenue Ext, Brooklyn, NY. Unfortunately, I have waiting for a location in Long Island; however as a new franchise I only get opportunities at those less attractive locations. The total cost is approx 230K for the NY 5 B area; I am interesting in knowing what you believe a typical draw/salary would be (wkly, monthly, and yr? How long to pay back and amts? What do you think about the area? I am certain about crime approx 2-3% and finding quality employment for the evening hrs thru the following morning maybe difficult. I am thinking about working the AM thru PM shifts thru 6-8pm. I am short for the franchise fee and would need a loan or tap into another resource for the balance. My max out of pocket is $125K-$150K; therefore I would assume a loan with interest for the balance as the 1st option.

    Whatever information you can provide me would be greatly appreciated, I do not want to make a mistake by going ahead w/ this franchise if there is no salary and no future opportunities in 1.5-2 yrs to purchase another 7 Eleven. The greatest risk for me is if this does not work I am losing everything the 4 walls, current management job in managed care, etc. Nevertheless, I am in need to get out of the managed care health insurance business due to all the changes and no growth. Finally, if you know of any other strong short/long term business opportunities; I am open to all ideas and suggestions. Thanks again for all your information and experiences. Thanks, Jack

  12. Nigist Says:

    Great information. You said income for a store with $900K sales is $50K. Does that income include an imputed wage for the owner operator? Or does the owner operator enters into the payroll to get to the $50K income with that sales?

    Thanks.

    • cstoreguru Says:

      Nigist – That income includes the franchisee’s wages, but a franchisee typically pays themselves a weekly “draw” (which is in essense a paycheck).

  13. Henry Says:

    Looking into 7-eleven franchises. Have found out that stores for sale in my area (south FL.) have GP’s of 34%. 7-eleven takes 51.1% of that. The franchises pay 11% of Gross sales for labor and and 4.5% of gross sales for operational costs ie advertising, equip and propty maint, etc. Seems to me that recent 7-eleven franchisees are survivng off a few days of cash float. According to my calculations, a store with gross sales of $1.5m earns a Franchisee a net profit of $22K a year . Maybe I’m missing something, but for a $150K investment and a 50-60 hour week work the Franchissee is buying himself a part time job with a mass of responsibility and pain.. I’d appreciate any comment or advice you may have.

    • cstoreguru Says:

      This is definitely not an easy business, and you are absolutely right about it being the equivalent of buying yourself a job. You are missing something though, because the slightest change in your top line numbers has a huge impact to the bottom line. A franchisee with the numbers you describe will more than likely be making around $80K per year.

  14. Jim Says:

    Any help with info on a location when you own everything and pay 7-11 20% of gross profits.

    • cstoreguru Says:

      I find it to be a good option for poor store operators (if you own a store in excellent location, but for some reason has really bad sales/profits, this is probably a good option). Good store operators should usually do better on their own.

  15. MP Says:

    Hi…
    I am looking at new location in Philla area. The store is gas location. Total investment is $243. My biggest challenge is that i am not sure what will be the sales… in general which is better opportunity in 7-11 business, new location or existing one?… i know in existing one you have more investment but you know the numbers. Any comments will be appreciated…

    Thanks,
    MP

    • cstoreguru Says:

      If you have no way of getting the sales numbers, you need to watch the store on different days at different times and do your best to estimate customer counts … then multiply by a typical average transaction for the area (you can use $4 if you don’t have a clue, but it would be better to get a more precise number) … this should give you a pretty good guestimate. Good luck!

  16. Anonymous Says:

    Is 50000 income after/before tax?

    • cstoreguru Says:

      LOL :-) Before tax…. Always before tax.

    • justlooking Says:

      # $900,000 * 36% GP * 49% split = $158,800 GP

      * – $108,000 expenses = $50,000 income

      yikes, 50k in my area is poor. you are just scraping by. better off just getting a regular office job. starting engineer here makes 70k with no experience, and no 350k initial investment. Doesn’t make any sense on why would someone do a c-store, I must be missing something.

      someone above said that hubby + wife team clear 200k/year. all you need is the same team with advance degree and you can clear 300k/year easy. 40-45 hours work week, and weekends off. paid vacation, stock options, 401k, health benefit, free life insurance. You don’t even have to work that hard, my company is full of dead woods all making > 6 figures.

  17. Abe Says:

    Guru,

    As a young but highly eperienced entrepreneur(i have been operating my own used car dealership for 6 years) I am at a loss of understanding with this 7-11 opportunity. I am currently saving my pennies and taking a shot with a $250-300k Investment in a 7-11 Franchise. My question to you is, what is the “sweet spot” for gross anual income of 7-11 store with gas? (for highest yield to franchisee) Because of the constant bottom line change with ANY top line change I am at a loss to understand what kind of store/formula I should be looking for.

    P.S.- This website is truly a gold mine!

    • cstoreguru Says:

      The gas doesn’t make a siginficant difference unless it’s an extremely busy gas store. For sales, you’re looking for the highest possible sales with a decent enough margin… minimum $1.2mm, but preferably over $1.5mm in sales with a margin over 35%. Alternatively, if the store has a margin over 39%, you can probably do a $1.1mm store as well.

      Your decision will also depend on your minimum income requirements.

  18. majman Says:

    so my father is interested in converting his deli into a 7-11. Initially, I was excited about the opportunity for a number of reasons. My dads business is not doing all that well right now, and he has to spend a lot of hours alone because he cant afford to pay additional wages to employees. He is getting older and I worry about his health. Also, as I stated earlier, business isnt going all that well and he is having a real tough time paying the bills. My feeling was that, once he converted to a 7-11, the business operations would become much more streamlined, and he wouldnt have to worry about the stresses of running a deli alone all the time. Also, you obviously want to reap the rewards of having a recognized name brand company such as 7-11, which one would have to assume would bring in more customers on a daily basis. But after reading up on it, Im getting more and more of a bitter taste in my mouth about the whole thing. Just looking at the numbers, and what a franchisee can expect to earn yearly, sounds pretty ridiculous when compared to what initial and ongoing investments take place(both time and money). WHy would individuals go through all the hassle, stress, nonassuarance, etc knowing that your earnings are really limited? Am I wrong in getting all pessimistic about the opportunity. I am personally saddened because I was also looking forward to taking over the business and making it a career for myself.

  19. Sukh Says:

    I owned a seven eleven that had the following:

    1,325,000. In sales
    37.25% GP
    $49356.50 Total GP

    49% split $241,845 My cut after seven eleven royalty
    This is where I would start taking out all expenses:

    Payroll: $92,000 (My employees were trained well, and I worked some shifts)
    Payroll tax: $8,500
    Inventory Variation: $4,500 (this can kill you if you don’t control it)
    Maintenance Contract: $9,000
    Taxes License: $9,000 (every area is different)
    Rubbish Removal: $3,200
    Workers Comp: $6,800
    Credit Card Expense: $8,900
    Misc: $4,500 (phone, bad merchandise, Janitorial etc.)

    Total Expense: $146,400

    Total GP $241.845

    Total Profit for Franchisee: $95,445.00

    This is actual numbers that I have made from my store. If you don’t control your labor or inventory…yes your profits will drop down. I agree with a comment about a husband and wife team that made over 200K..and that is possible (this are running a tight ship with low labor, and great gp margins, I take my hat off to them). This is a business in which you have to be involved and get to know what is going on in your business. I would not recommend it for someone who is looking to be absentee and expect to make 100K the first year (honestly I don’t think that would happen, unless you got a store in Orlando doing over 3.8 million in sales, which there are none left). I encourage everyone interested into becoming a franchisee to learn as much as they can about what they are getting into. Can you work a graveyard shift if needed after working 8 hours during the day? This can happen (luckily it has not to me… the chances are there). Hope this helped out some.

    Sukh

    • Anonymous Says:

      Thanks Sukh

    • Jon Says:

      Since this post is old, I don’t know if you’ll receive this response. Thank you for breaking down the numbers so specifically for your store. That’s a good income, I think. I would really like to get additional information from you, as what you have provided already shows a person who is meticulous and straight-talking. I am considering becoming a franchisee and want to “know what I’m getting myself into”, as you say.

      Jon

    • Tony Says:

      Thank you for the details, very helpful, just one question, was this a gas store? (I’m assuming not since you make no mention of it…. Tony

  20. partho Says:

    whats roi mean

  21. Tony Says:

    I own three 7-Eleven stores in a major metropolitan area for 15 years. I’m planning on getting more stores ONLY without a goodwill because the ROI from a goodwilled store is very low. I patiently wait for new stores or a deadbeat FZ to get the boot from the company. Trust me, the way this franchise system is set the ROI is terrible for goodwilled store due to high franchise fee.

  22. Omar Alkozbari Says:

    I have been with 7-11 for several years working with franchisee side of the business not for corporate. I have seen many things, and ways to make money while doing this business. This business is not for those who have no clue nor for those who haven’t worked at a 7-11 before nor if you don’t have any friends or someone to teach you the system and also all the good sides to it in the back room where all the accounting gets done and records are. 7-11 is a big company making money from selling their own products in the store to the customer and from selling their own products to you to sell everything from 7-11 hot dogs to chips to ice cream to candy to drinks etc. 7-11 Inc announced that it made 76 Billion dollars in 2011 globally in sales from their store sales though including corporate and franchisee stores. 7-11 Inc also makes money from their products that they own which you buy to bring to the store, so 7-11 is very brilliant, smart and competitive in the market and innovative. A typical store makes average $800,000 to 1,250,000 up to $2,500,000 for stores in better areas. I worked with a very smart family, who owned more than (17) 7-11 stores. Each store has their own manager, and at least 2 full time employees and up to 3 part time employees. One of his stores was only making $1,150,000 a year in sales but while earning him more than or close to $100,000 in profit for himself after expenses and payroll. It is more than possible to earn $150,000 while working 30-50 hours per week or less making or checking orders, doing accounting, payroll, and tracking store growth effortlessly but you have to make the right choices.

  23. Omar Alkozbari Says:

    If you invest at least 30-50 hours per week, track your store, hire and train good people as best as possible, then it is more than possible to make at least $150,000 up to $250,000 per store in yearly income but that all depends on store location, sales, profit, # of employees, & agreement with 7-11. The amount of money can decrease depending on how many stores you have and how you manage or how much of your own time you decide to invest in the business. I think anything is possible.

    • cstoreguru Says:

      “more than possible” is a bit of a stretch :) But if you can do it, more power to you! Out of the 100+ franchisees that I’ve met or worked with at some point or another, only a small handfull had stores making $150K or more. Most were somewhere between $60K-$110K.

  24. MK Says:

    This business is a penny business. Every sale, transaction, effort, piece of inventory, write off items or expired items,…. it all counts and makes dollars which turn into thousands of dollars easily in a short period of time. Every store has thousands of dollars worth of inventory, and each store has ability to order thousands more in inventory when ordering for daily and non-daily items. What’s the most important fact is that, you yourself’ have to be trained, and knowledgeable first before anything, and then hire or keep dependable, honest, hard working individuals to train them and teach them techniques and ways to get around the store and finish all required activity during the shift he/she is working while providing excellent customer service. You have to also be careful, mindful, of customers and employees. What I’m saying is that everything counts, and makes a difference. You could sell 20 coffee cups a day or sell 80 coffee cups a day or between 90-200 coffee cups per day with increase in store traffic for newspapers, lottery, milk, breakfast/lunch sandwiches, taqitios, drinks, and etc. thus increasing your store sales and profit. Having a clean store, respectable people, knowing the area, or getting to know the customers and responding to their needs is all important. A major way to make more money, is by bringing in merchandise from the outside of the store. There is a loophole in regards to that topic which 7-11 doesn’t like but you can do it. You can bring in products or merchandise to sell inside the store, making money from buying the product first, then by having it brought to the store, and third by selling it. The potential is very high to make more money in this regard but this is possible more in the established stores and not the new ones being built which 7-11 has a tight strict control over and rules that cannot be ignored, or sidestepped since 7-11 can cancel your contract if you do not follow the guidelines. However I am only sharing what I know and know that happens in many 7-11 stores throughout the country.

  25. RAUF Says:

    Just one question, how much could be the net profit by 7 11 store with fuel, low volume store.

    I m thinking to get into it so someone can answer my question would be much appriciated

    • cstoreguru Says:

      The profit on fuel in the US used to be 1.5 cents per gallon sold (might have changed). You’d need to find out what the margin is in your areas to do an accurate an estimate.

      • Jeff Says:

        Gas right now ranges from 7 cents per gallon to 23 cents per gallon profit, dependent on the supplier and cost of detergents put in the gas. I know many stores that charge a lot more than what they pay (up to 40 cents which is ridiculous) for it until it’s just about depleted, which is a poor business model in my opinion. Typically if you charge 1 cent less than your competitors, you’ll be swamped and easily make the difference in volume versus total profit per gallon. Instead of getting in 8,900 gallons of regular, you can get in 3,000 gallons, charge a competitive rate, and make up any lost profit in the volume will now pump. If you are pumping the volume from examples 2 and 3 below, you’d probably be getting in full loads.

        Example 1 – store sells gasoline at $3.50 per gallon. Cost is $3.12 per gallon. Profit per gallon is $0.38. Store sells 1,000 gallons per day and makes a profit of $380.00.

        Example 2 – store sells gasoline at $3.26 per gallon. Cost is $3.12 per gallon. Profit per gallon is $0.14. Store sells 4,000 gallons per day and makes a profit of $560.00.

        Example 3 – store sells gasoline at 3.25 per gallon. Cost is $3.12 per gallon. Profit per gallon is $0.13. Store sells 5,000 gallons per day and makes a profit of $650.00.

        These are fabricated numbers and do not hold any merit as to what actually happens in one of the most volatile markets in the world, nor can I speculate on what happens at 7-11 or what their distribution charges are for gasoline which would have effects of the profit margin unless the delivery is built in to the price. But 47% profit of just $500.00 per day is $235.00, over 7 days is $1,645, and over a year is $85,540. I’m sure I didn’t follow the model accurately enough, but not bad for gasoline.

        The bottom line is that most consumers, unless they are loyal to a brand of gasoline, will likely go to the cheapest price, and let’s face it, in today’s economy, who can blame them. Get them to your place for gas and they’ll buy something else most of the time.

        I’ve seen many stores (not 7-11 and I have zero knowledge of their gasoline model) sell well over 100,000 gallons of gas per week, every week, and the scales tip towards 150,000 gallons during the busy months, sometimes topping 35,000 gallons in one day.

        Gasoline can be a dangerous business, the expenses are higher, the training is more in depth and time consuming (as you want each employee to know EXACTLY what to do in case of a fire), and there’s a dozen ways to accrue shrink in the gasoline category that’s out of your hands (like evaporation from the tanks and repairs for idiots who drive away with the hose still in their car).

      • cstoreguru Says:

        Hi Jeff, just wanted to thank you for the insightful comment. 7-eleven corporate does not let their franchisees profit from gas, the 1 or 1.5 cent per gallon (whatever it is right now) is meant simply as a means of paying for franchisees for the extra costs of running a gas store. Franchisees also don’t control the price of their gas … if they did, they would ofcourse choose to undercut their competition to bring in more business. Instead, 7-eleven gas price strategy is usually to be the same as higher-end gas providers in the area.

  26. Robert Says:

    As a 7 eleven franchisee I would say this is pretty close to reality of how much a franchisee can earn. Dont be surpirsed if in winter months you acutally have to give money back to 7-Eleven corporate. Think of this as you are buying yourself a job. Unlike other franchises 7-eleven corporate does not gives you a lot of decision making room. You will be monitered and pressured to do things the 7-Eleven corporate way.

  27. Robert Says:

    Corporate changed the contract on fuel approx. couple of years back. Currently franchisee gets 1 cent/gallon on fuel sold. Franchise fee for fuel was $20,000+franchisee fee. They recently went on an auction system to franchisee the stores. Before there was a set franchise fee for store based to sales. Now they set the franchise fee but acution the store, so whoever pays more wins provied he is qualified through 7 Eleven corporate.

  28. Kevin Says:

    I don’t think this is a profitable business.After investing money if you earn only 60K than its better to do a job.By doing any job in australia you can earn 40 to 50 K. 60K income is estimated if you achieve that much sales volume if not, than there will be a loss.

  29. Ryan Says:

    Do you have any articles like this but that include gas?

  30. woundim Says:

    I have three stores right now and all my three stores are located in Washington dc and I have three managers in each stores and my stores yearly sales are almost the same which is 2millions and more so with these sales and with out going to each store everyday can makes easily 175,000/years so its so good business but make sure you choose the right locations

  31. Anonymous Says:

    Guru why you have negative impression about 7-11

  32. adam Says:

    What is the effect of SE opening a new store close to the proposed store for sale
    Thanks

  33. Amool Says:

    Dear Guru,

    I recently bought a small convenience store in Western Australia. Now the first 7/11 store is coming up 100 mtrs from me in few weeks from now. How much do you see on me for this? I am worried.

    • cstoreguru Says:

      Sorry to hear that. It’s definitely a problem. I would not want to own your store right now.

      • Amool Says:

        Dear Guru,
        Thanks for your reply, few more clarifications. My store is supposed to turnover 4,50,000/- a year which can give me a net profit with my wages of about 70,000/-. How much can 7-11 hit me? Mine is also a good location. Are 7-11 very cheap for customers in Australia? Do you suggest I should sell my store as early as possible? Please advise.

      • cstoreguru Says:

        I have no knowledge of 7-eleven Australia specifically. What I do know is, generally speaking, 7-eleven typically outperforms an independent store because they have better systems in place and brand recognition (in U.S.). The brand recognition may not be as big of an issue for you in Australia, or it could be a bigger issue because of the novelty of a new 7-eleven they’ve never seen before. What I also know is when a competitor opens up right next to you, it’s going to cost you sales/profits no matter what, and can potentially put you out of business since customers generally prefer to shop at the newer, cleaner, store. So to your question, based on the information you provided, I would sell unless there’s something that you can offer customers that 7-eleven can’t … even then I would still probably sell.

      • Amool Says:

        Dear Guru,
        Thanks for your valuable advice. Unfortunately, I shifted few months back from India, chose this beautiful location and put my all money in store. Its not easy to sell as I need an alternative. Its in a tourists place and customers are a mix of regulars and tourists. This is very first store by 7-11 in Western Australia, Perth. Anyway, I need to figure out my next step based on your wise advice. Thanks indeed.


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