7-Eleven Inc., which has its Southwest headquarters in Brea, is ramping up its efforts to convert mom and pop stores into 7-Elevens with a program that offers $250,000 for remodeling.
The store must have 2,000 square feet of space and meet other qualifications.
The time is right for many independent stores, which are being crunched by the higher gas prices, said Margaret Chabris, spokeswoman for the Dallas-based chain, part of Tokyo’s Seven & I Holdings Co.
Retailers don’t make much profit on gas, and the more money customers have to pay for gas, the fewer items they’re likely to buy in the store.
Product costs are going up as well, she said.
“They’re getting squeezed on margins,” Chabris said.
7-Eleven offers independent operators a brand, a support system and products at lower costs, she said. The business conversion program started a couple of years ago, but 7-Eleven is boosting its efforts during the downturn.
There are about 100,000 convenience stores nationally and the majority of those are independents, she said.
7-Eleven is the biggest convenience chain with 5,600 stores in the U.S.
John Andikian decided to convert his Tustin store into a 7-Eleven in 2006, after going it alone as Andy’s Market.
“I virtually doubled my sales overnight,” he said.
When he opened in December of 2006, he had $70,000 in sales. This past April, he had $161,000.
At Andy’s Market, he sold products similar to those sold in 7-Eleven. For example, he sold Andy’s Freezes, like 7-Eleven Slurpees, he said. But Andy’s didn’t cut it as a brand, he said.
“Everyone who comes in here knows what I’m going to sell,” Andikian said.
With the conversion, which took three weeks, his store also got a better accounting and inventory system.
“I can tell you how many certain flavor Gatorades I sell in two hours,” he said.
The 7-Eleven system also offers better price tracking. If Coca-Cola Co. comes out with a $3 price increase for cases of Coke, the prices are inputted into the computer and automatically reflected at the cash register.
The highest profit items for his store: coffee, Slurpees and Big Gulps.
Andikian pays his workers $10 an hour.
“I pay a little bit more so people will want to work here,” he said.
While 7-Eleven contributes $250,000, the owner also has to invest. Andikian put in an additional $100,000 to cover the franchise fee and construction costs to bring the store up to standards to serve people with disabilities.
The amount each operator invests will vary.
7-Eleven provides the machinery for the store and the computer and cash system.
If a machine breaks down, a technician comes out within four hours, Andikian said. He pays a maintenance fee for the service but immediate and reliable service isn’t something he had as an independent.
Andikian says there has been no downside, other than “remembering all the new people’s names when they come in here.”
Store Openings
Fresh Produce, a women’s and children’s coastal resort style clothing store, has opened at Anaheim GardenWalk.
Swiss jewelry chain Piaget opened a boutique at South Coast Plaza. The nearly 1,000-square-foot store is an exclusive on the West Coast.
Tea and coffee shop Milk + Honey opened at The Camp in Costa Mesa.
Japanese restaurant Isakaya Wasa opened at the Irvine Spectrum Center. The restaurant is new from the owners of the Wasa Sushi restaurants.
Positive Press
Dealers are having a rough time these days, especially selling trucks and sport utility vehicles.
Many people are holding off on buying autos.
Some Orange County dealers are hoping to bail by selling their dealerships but it’s difficult to do that now because like houses they aren’t worth what they were a few years ago.
So dealers are getting their name out any way they can.
Ford of Orange recently got some positive press locally, thanks to a bird’s nest in a Ford F-150.
The dealer’s floor manager Paul Corrigan cordoned off the Ford F-150 pickup, host to the bird’s nest, and won a distinctive award,the Compassionate Citizen Award,from the People for Ethical Treatment of Animals.
“We were just so touched by the story,” said Melissa Kartel, spokeswoman for PETA.
Most Searched
Record gas prices made the Toyota Prius the top searched vehicle on Cars.com in May. The Prius surpassed the Toyota Camry and the Honda Accord.
Irvine-based Kelley Blue Book’s kbb.com breaks out the Prius and other hybrids into its own most-researched category. Prius leads.
The top sedans are the Honda Accord, Toyota Corolla, Toyota Camry and the Honda Civic, respectively.
