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Is the 7-11 franchise out of control. A street in Pattaya has one ever 50m to 100m


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I was shocked to see one street in Pattaya (Khopai Rd which is 5min from Soi LK metro area) that has a 7-11 convenience store every 50 to 100m. I laughed at one point when I saw a very small soi separating two  7-11 stores right opposite each other on the same side of the road. I couldn't believe how many there were in that one street alone. Are they all owned individually or by one rich dude? 

 

I assume anyone buying this franchise takes on the risk that the governing body will allow any other business owner to open another store right next door. Why would they do this to their investors. The profitability of each shop will evidently be reduced the more 7-11's there are in the street. I dont understand the business model to be honest.

 

From what I understand the business owner has to pay 35% of profits to the central office. Also each shop has to buy the stock from the central office who can dictate the prices. It seems to be a high risk business to invest in when the governing head office allows one to be opened virtually next door to each other. Very daft business model or am I missing something?....

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26 minutes ago, impulse said:

 

The theory behind the franchise is that they have proven the market, they've developed the sourcing and distribution and inventory system.  Basically, you're buying a complete system that generates cash.  If you work it, you bought a job.  If you hire someone to work it, you've bought a cash flow- contingent on some smarts on your part.

 

The franchisees all know that going in...  

 

I would love to know what the average franchisee gets pa and for what investment. 

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2 hours ago, URMySunshine said:

CP have been ruthless and efficient operators to become the second richest family in Thailand in just 90 years. There are a lot of busy fools running a franchise who find out the hard way that it is a stacked deck and that the house always wins even if they don't.  

Yes I would never buy a franchise business Thailand or anywhere  else. You never make a living. It is the same in the western world. Most of them go bankrupt and left with nothing.

 

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33 minutes ago, Berkshire said:

Not sure why you would say that.  There's a reason franchises are flourishing all over the world. 

 

Because the "starry eyed" people who bought into them are stuck in them, never having earned enough money to pay off the debts incurred when they borrowed to get into them?

 

They spend their lives paying off interest?

 

I may be wrong, but it would seem to be an obvious reason.

 

Not having read this, I can't really say:

 

Top 4 Reasons to NOT Buy a 7-Eleven Franchise

 

Whatever, there are always plenty more starry eyed individuals "in stock".

 

 

 

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I once came across a crossroads somewhere in an innner BKk suburb that had a 7/11 on 3 corners and a Familymart on the other ! It was an older part of town,not a particularly prosperous area, just townhouses no condos, nor was the road too busy to cross, so I don't know why anybody thought that 4 convenience stores were wanted or profitable.

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1 minute ago, MikeN said:

I once came across a crossroads somewhere in an innner BKk suburb that had a 7/11 on 3 corners and a Familymart on the other ! It was an older part of town,not a particularly prosperous area, just townhouses no condos, nor was the road too busy to cross, so I don't know why anybody thought that 4 convenience stores were wanted or profitable.

Not just in Thailand. Just outside Blackpool there's a crossroads with 2 McDonalds on opposite corners.

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18 hours ago, ubonr1971 said:

I was shocked to see one street in Pattaya (Khopai Rd which is 5min from Soi LK metro area) that has a 7-11 convenience store every 50 to 100m.

That few? In some parts of Bangkok we have them one next to the other... there are 12 within 200m from my home. And then there's Family mart, supermarket, etc... Can't say I have nowhere to shop in the middle of the night.

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18 hours ago, ubonr1971 said:

It seems to be a high risk business to invest in when the governing head office allows one to be opened virtually next door to each other. Very daft business model or am I missing something?....

You're missing how much money is being made by CP All and the franchisees, if they weren't making money they wouldn't be investing millions into these franchises, would they?

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23 minutes ago, joskeshake said:

do you have chopper for making trip from soi LK Metro to Soi Khopai in 5 min ? or i'm I wrong and is there an Khopai road somewhere ?

Yeah hate people that tell lies... Khopai to LK is 2.1km and take 7 minutes according to google maps.

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18 hours ago, URMySunshine said:

CP have been ruthless and efficient operators to become the second richest family in Thailand in just 90 years. There are a lot of busy fools running a franchise who find out the hard way that it is a stacked deck and that the house always wins even if they don't.  

So you're claiming that all these shops aren't making money for themselves, then?

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18 hours ago, URMySunshine said:

CP have been ruthless and efficient operators to become the second richest family in Thailand in just 90 years. There are a lot of busy fools running a franchise who find out the hard way that it is a stacked deck and that the house always wins even if they don't.  

 

18 hours ago, URMySunshine said:

i.e if you do well then they will steal your thunder after you took the risks and determined the market. 

 

17 hours ago, URMySunshine said:

I would love to know what the average franchisee gets pa and for what investment. 

Your first two comments suggested that you already knew that otherwise why would you have made those comments?

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