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: firstname.lastname@example.org 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 .