🍔 New Food-Focused Stores
7-Eleven plans to launch over 600 New Standard stores across North America by 2027. CEO Joseph DePinto said these “contemporary facilities” will feature expanded food and drink options to meet changing customer demands. The prototype, launched in Allen, Texas, aims to refresh 7-Eleven’s brand by increasing in-store dining and foodservice options.
📊 Strong Returns from Prototype
DePinto shared that New Standard stores are performing strongly, with an 11% return on invested capital. These stores have also exceeded the first-year sales of 7-Eleven's previous Evolution format by 30%. With popular options like made-to-order coffee and cold bars, the company is seeing positive responses from customers. "Our customers appreciate them, and the stores continue to improve," DePinto said.
📉 Closing Underperforming Locations
As 7-Eleven invests in New Standard stores, it will close 444 underperforming locations across North America. This decision aligns with broader financial strategies to streamline operations amid challenges like price-sensitive consumers and lower-than-expected fuel and cigarette profits. The company recently cut its operating income forecast for 2024 by 28%, from $2.9B to $2.1B.
🚀 Growth Goals Amid Industry Shifts
7-Eleven, which operates nearly 12,650 stores in the U.S., plans to open 115 New Standard locations by the end of 2024, adding 125 more in 2025, 175 in 2026, and 200 in 2027. The company’s goals are ambitious yet essential as it refines its retail approach. By prioritizing high-performing stores, 7-Eleven hopes to capture more food and beverage sales, adapting to new consumer trends in convenience retail.
Will 7-Eleven’s new food focus draw customers back?
