Buy 7-11 Franchise in Thailand

[HulkSmash]

Dear All,

I am mix Thai, 25 years old. I have my dreams and goals in Life. I am Thinking to buy a 7-11 Franchise. I have been researching a lot about it recently. 

Is there anyone would like to share ideas ? Your help will be grateful.

 

Have a marvelous day. 

[lopburi3]

You are aware that there already is a 7-11 just about everywhere in the country and that the world, and Thailand is part of this world, is rapidly turning to home delivery for most items; including food.  Currently the three largest supermarkets offer this service here in Thailand and it is expanding.  Suspect this may not be a positive sign for stand alone stores. 

[Peterw42]

7 minutes ago, lopburi3 said:

You are aware that there already is a 7-11 just about everywhere in the country and that the world, and Thailand is part of this world, is rapidly turning to home delivery for most items; including food.  Currently the three largest supermarkets offer this service here in Thailand and it is expanding.  Suspect this may not be a positive sign for stand alone stores. 

To a certain extent its 2 different markets, people dont buy there weekly groceries at 7-11 and people dont go to the supermarket for a can of coke and a cheese toasty. 

[HulkSmash]

You are aware that there already is a 7-11 just about everywhere in the country and that the world, and Thailand is part of this world, is rapidly turning to home delivery for most items; including food.  Currently the three largest supermarkets offer this service here in Thailand and it is expanding.  Suspect this may not be a positive sign for stand alone stores. 

Yes there are more than 10,000.
7-11 stores in Thailand. Achieving the milestone faster pace than japan.
And they have a plan to expand more

I guess that buying a franchise is also depend upon the location itself
Like central Bangkok or (Soi’s in Asok) or something.
Meanwhile I have permanent job and this will be part time. Not sure I will have a time to manage all that [emoji4]
Any idea how much is the average profit we can make from 7-11 franchise , after paying the wages and rental
?




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[Peterw42]

I dont know how true the stories are but supposedly there are franchise stores and company stores, if you have a successful franchise store then the Company will open a company store close by.

[HulkSmash]

Too many challenges around lol


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[lopburi3]

11 minutes ago, Peterw42 said:

To a certain extent its 2 different markets, people dont buy there weekly groceries at 7-11 and people dont go to the supermarket for a can of coke and a cheese toasty. 

True but is changing as here in Bangkok can order from TOPS for same day delivery, often at less cost than going out to a 7-11.  Expect they will co-exist for a long time to come but afraid the profit may shrink.  In OP case, not being on-site full time, would place shrinkage as a real issue unless he has a very good manager (and expect that would cost). 

[theguyfromanotherforum]

I was told that if you want to buy 7/11 you better put 60 hours a week minimum (not something you can do part time) for 30k a month.

 

 

[HulkSmash]

Thank you


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[RichCor]

Also suggest you see all the previous ThaiVisa posts

Google Search =>  site:www.thaivisa.com 7-11 franchise

 

...really too many to list, but here are some:

 

7 Eleven Vs Family Mart
By bonviveur, August 15, 2004 in Jobs, economy, banking, business, investments 

 

7-11, Tesco Lotus Express Franchise
By Khun Jean, November 15, 2007 in SME Business in Thailand 

 

I Am Considering Buying A 7/11 Franchise..
By Daxter, August 27, 2012 in Jobs, economy, banking, business, investments 

 

Going Into Negotiations To Open A 7-11 Franchise - Help Needed
By TenCent, November 22, 2012 in Jobs, economy, banking, business, investments 

 

How to open a 7/11?
By Crazy chef 1, October 30, 2015 in Jobs, economy, banking, business, investments 

 

 

You might be able to make it work for you if you've already won multi-millions from the lottery and need something to invest in for fun.

[HulkSmash]

Also suggest you see all the previous ThaiVisa posts

Google Search =>  site:www.thaivisa.com 7-11 franchise

 
...really too many to list, but here are some:

 

7 Eleven Vs Family Mart
By bonviveur, August 15, 2004 in Jobs, economy, banking, business, investments 

 

7-11, Tesco Lotus Express Franchise
By Khun Jean, November 15, 2007 in SME Business in Thailand 

 

I Am Considering Buying A 7/11 Franchise..
By Daxter, August 27, 2012 in Jobs, economy, banking, business, investments 

 

Going Into Negotiations To Open A 7-11 Franchise - Help Needed
By TenCent, November 22, 2012 in Jobs, economy, banking, business, investments 

 

How to open a 7/11?
By Crazy chef 1, October 30, 2015 in Jobs, economy, banking, business, investments 

 
 
You might be able to make it work for you if you've already won multi-millions from the lottery and need something to invest in for fun.

Thank for sharing.


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[lkn]

20 hours ago, Peterw42 said:

I dont know how true the stories are but supposedly there are franchise stores and company stores, if you have a successful franchise store then the Company will open a company store close by.

Would be nice to hear from someone who has actually tried running one.

 

If the company can run their own stores, you are definitely at a disadvantage, since they know exactly how much you sell.

 

But I do wonder, if running a 7-Eleven only gives you break-even revenue, why do they often seem to have spare staff? It’s not uncommon I see 1-3 staffers behind the desk seemingly doing nothing, sometimes even when there is a line of people waiting to pay.

[RichCor]

3 hours ago, lkn said:

But I do wonder, if running a 7-Eleven only gives you break-even revenue, why do they often seem to have spare staff? It’s not uncommon I see 1-3 staffers behind the desk seemingly doing nothing, sometimes even when there is a line of people waiting to pay.

I wonder what the average hourly wage is for a 7-Eleven staffer.  If they work 40-48 hours a week for, say, 8000THB/mo...  maybe 40THB an hour?

[wirat69]

If you do buy, check the procedures for banking and reconciling to the till receipts..... not uncommon for the Manager to "remove" a few baht in the process between till and bank...... 200,000 baht in one village in Khon Kaen

[thailand49]

It has been a number of years since I did the research. I believe there is a forum for this as I remember that have past owners and perspective interested buyers like you.

I and my wife was first approached by a representative for 7/11 to be honest not too knowledgeable because the more question I ask the more she started to withdraw. The one thing that stuck to my mind was her statement " you can clear 100,000 a month "

When I did the research and number it just didn't hold up.

As noted today there are 7/11 all over the place, in my research the years back I found there were two types of franchise one can buy?  A&B  the A was the smaller ones buy in 7-8 1.5 million, B, was 2.5 million. They had restriction as the qualification to manager to running the store and if you don't qualify they provide a manager to you. As most franchise they have their rules and rules from what you put in and what is sold.

Today, in Pattaya the stores are getting larger the small ones are slowing being phased out.

I also found out the " 100,000 baht clear is the old old days, if this was possible I would have purchased a half dozen. But the fact is very hard to make you money back in 7-8 years. Thereafter, you have to renew the contract again which means you kick out the lump sum again. You basically have no control since they can open a store just 50 feet away from you and no choice to the location of the store.  Here in Pattaya, two years back I noticed a number of stores closing and renovating the reason was the old franchise owner didn't renew the contract thus the renovation.

I've found depending on the area you can make more money if you purchase land and try to determine where they might open up and rent it to them to open. I know a Thai neighbor who had such a piece of land, 7/11 is giving him 50,000 baht a month for the space?

Personally, you be better off getting a KFC...

[Tchooptip]

On 13/01/2018 at 2:23 PM, Peterw42 said:

I dont know how true the stories are but supposedly there are franchise stores and company stores, if you have a successful franchise store then the Company will open a company store close by.

1

"I dont know how true the stories are"

True most probably! They all behave like that

[dean2926]

In any business, in any country It's not easy making money in retail.

 

It's hard enough when you have full control but I'd reckon near impossible in a franchise situation and especially in Thailand where things don't seem to be straight forward.

 

You have to be able to make your own decisions and manage everything.

 

I think with 7-11 you're beaten before you start.

 

Sorry to be so negative but on a positive note you've got the right idea in working for yourself.

 

Keep looking for something you can build on and control.

[murraynz]

i looked closely into buying 7-11, several years ago..the biggest problem to me is---there is NO  garauntee that they wont open another one, very close by..as somebody has already stated---they do that if an existing shop is very busy.

i think there are very few small businesses in thailand,that actually do make much money...there is also huge problems with the staff...

if you do have cash to invest--far better to do so--elswhere...

[Srikcir]

54 minutes ago, thailand49 said:

You basically have no control since they can open a store just 50 feet away from you and no choice to the location of the store. 

Isn't it a little more complicated?

Maybe you know and can confirm or object to what I've only read in forums.

The Thai national franchise operator holds 7/11 franchises to a maximum return and/or sales volume. When that's exceeded (or expected to be exceeded?), it can justify the placement of another 7/11 nearby. That protects the franchise fee.

So whether than having a protected territory, one gets a protected income. Of course 7/11 has no control over the placement of other competing franchises such as Tesco Express.

[Nice Boyd]

On 1/13/2018 at 3:23 PM, Peterw42 said:

I dont know how true the stories are but supposedly there are franchise stores and company stores, if you have a successful franchise store then the Company will open a company store close by.

CP owns them , I think you have first choice to buy the competitors site, I would buy one in Isaan or on the hiway at PTT  or similar, but no alcohol sales in hiway

[Thaidream]

Google 7-11 in Thailand and a wealth of info becomes available some from Thai Visa archives. It appears the key to profitability is funding the stat up and the location and if you are the land owner then you are in the driver's seat.  For most people- unless you already own the land- a land purchase in Bangkok would make it very costly to even think of a return on investment.

 

One thing that I read -really caught my attention- if the location you are thinking about is so good and there is no competition why not open your own place- call it whatever you want to and reap all the profits. Of course, at some point, along will come 7-11 or Lotus Express or Mini C and then you will have competition unless all the nearby land is already occupied by other business.

[Brunolem]

37 minutes ago, Nice Boyd said:

CP owns them , I think you have first choice to buy the competitors site, I would buy one in Isaan or on the hiway at PTT  or similar, but no alcohol sales in hiway

CP owns the franchising licence indeed, and that already says something...

 

I had the same idea years ago and went to their head office on Silom.

 

The major problem, by far, is not about the competition, but the fact that everything is done in Thai language, including the massive paperwork, or its equivalent via computer.

Unless you are fully fluent in Thai, spoken, written and read, you can forget about it!

 

Then, even if you were somehow able to deal with this issue, you would be faced with managing local employees 24/7, who would never have the same respect, and fear, for a farang boss than they have for a Thai or a Chinese.

 

If you want to open something in Thailand, forget about a franchise...open your own business: restaurant, shop...

It will cost much less and you will keep your freedom.

Finally, avoid Bangkok, too expensive, and the major tourist spots, too crowded...

 

[BernieOnTour]

I always remember a McDonalds manager telling me years ago: Essentially, we are in the property business and fast food just comes on top of that.

And IMO, the same holds true for 7/11.

 

So, in the end it all comes down to 3 important factors: location, location, location.

Most likely, you'll have difficulties to find a good location without at least one 7/11, Tesco, Family Mart, unless you have a good nose to anticipate, which areas will be trending in near future.

[sawadee1947]

On 1/13/2018 at 2:03 PM, lopburi3 said:

You are aware that there already is a 7-11 just about everywhere in the country and that the world, and Thailand is part of this world, is rapidly turning to home delivery for most items; including food.  Currently the three largest supermarkets offer this service here in Thailand and it is expanding.  Suspect this may not be a positive sign for stand alone stores. 

true, but it will take years over years until it would spread into country side, because of the costs and distances of delivery.

So, man, do it, take the chance!

[toofarnorth]

On Saturday, January 13, 2018 at 2:23 PM, Peterw42 said:

I dont know how true the stories are but supposedly there are franchise stores and company stores, if you have a successful franchise store then the Company will open a company store close by.

Funny how things are sometimes. 3 years ago we had no 7-elevens in town , now there are 3 and just a couple of months ago  a mini Lotus opened across the narrow road in town directly opposit 7/11.

[natway09]

Just remember that the holding Co CP Group will always be your boss as just about everything you stock,buy, sell, will have to be purchased through them they control margins & detailed daily reports 

automatically go back to them.

More importantly they are ruthless, the moment you start to make a good profit (with all your hard work)

they will try & open one down or across the road. I have seen this happen twice in our Soi within 4 years 

[Thaidream]

If you own a piece of land in Issan and you look around and there is potential traffic to a store- simply copy the 7-11 concept and call your store something else  such as 'Somchai Express'.

However, if successful- expect competition from a 7-11 or Lotus. They would then try and capture all your customers-  however, if you have their concept already- you will have made your money by that time- 

One thing to be learned when picking a spot for a restaurant or convenience store- imagine what the site will look like in 10, 20, 30 years.

[Techno Viking]

On 1/13/2018 at 6:37 PM, lopburi3 said:

True but is changing as here in Bangkok can order from TOPS for same day delivery, often at less cost than going out to a 7-11.  Expect they will co-exist for a long time to come but afraid the profit may shrink.  In OP case, not being on-site full time, would place shrinkage as a real issue unless he has a very good manager (and expect that would cost). 

can I order a toasted ham cheese sandwich and can of coke from Tops ?

[Brunolem]

1 hour ago, sawadee1947 said:

 

So, man, do it, take the chance!

But just make sure that you really master the Thai language, otherwise you might have some trouble checking your inventory, placing your orders, prepare your daily reports, and deal with the multiple administrations both in writing and in speaking...

 

Other than that...well...read the posts above, they are all true...

[maxpower]

38 minutes ago, Thaidream said:

If you own a piece of land in Issan and you look around and there is potential traffic to a store- simply copy the 7-11 concept and call your store something else  such as 'Somchai Express'.

However, if successful- expect competition from a 7-11 or Lotus. They would then try and capture all your customers-  however, if you have their concept already- you will have made your money by that time- 

One thing to be learned when picking a spot for a restaurant or convenience store- imagine what the site will look like in 10, 20, 30 years.

Yes its all so easy in theory and then Somchai Express will sit and wonder why so many are heading to the 7-11 5km away.

 

Counter Service, 24 Catalog, Bakery + Coffee, Yummy Hot Sandwich, Microwave Meals, 7 Card, Hot Promo.

And the 7-11 marketing beat goes on ......

Smart people lease prime locations and let someone else have the headaches.