[HN Gopher] 7-Eleven Is Reinventing Its $17B Food Business to Be...
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       7-Eleven Is Reinventing Its $17B Food Business to Be More Japanese
       [video]
        
       Author : indigodaddy
       Score  : 47 points
       Date   : 2024-07-05 20:56 UTC (2 hours ago)
        
 (HTM) web link (www.youtube.com)
 (TXT) w3m dump (www.youtube.com)
        
       | m463 wrote:
       | A friend from Japan said 7-11 was an upscale store there. It
       | features the top products in every category, and is maintained in
       | an organized and clean japanese way.
        
         | TulliusCicero wrote:
         | 7-11 and convenience stores in general in Japan (the other big
         | ones are Lawson and Family Mart) are vastly superior to
         | American offerings. Almost every American who goes to Japan
         | seems to comment on this.
        
           | Klonoar wrote:
           | It's not _just_ Japan, it 's largely Asia in general (e.g,
           | Taiwanese 7-11's and Korean 7-11's are also so far above
           | their US counterparts in terms of offerings/feel).
           | 
           | (A fun trivia fact is that like 7-11, Lawson also originally
           | started in the USA. They only recently-ish returned stateside
           | with locations in Hawaii (IIRC).)
        
             | sho_hn wrote:
             | I'd say in Korea 7-11 is the worst of the top 3 options
             | though (GS25, CU and 7-11)
        
               | Klonoar wrote:
               | I mean, sure. I don't even think 7-11 is the top in
               | Japan, but this is all opinion (ish).
               | 
               | My only real point was that they are categorically above
               | their US counterparts, and that it's not _just_ a Japan-
               | specific thing.
        
             | mlinhares wrote:
             | I'd be surprised if there is any place where 7-11 is worse
             | than in the US given how bad they are in here. Having lived
             | most of my US time in PA I always either drove longer or
             | waited for a Wawa to shop because all 7-11s were pure
             | garbage.
        
               | alephnerd wrote:
               | The Asian equivalent of a trashy and cheap American 7/11
               | or Circle-K would be street vendors or a hyper-local
               | general store/bodega with a bare minimum amount of goods.
               | 
               | In much of Asia (JP, SK, and TW excluded), convenience
               | stores like 7-11 are similar luxury wise to what Target
               | is in the US.
        
           | jrockway wrote:
           | With that in mind, I've never noticed a difference between
           | the various brands of Japanese convenience stores. Lawson /
           | Family Mart / 7/11 all seem the same to me. The only thing
           | that ever stood out about 7/11 was that I could use their
           | ATMs to take money out of my American bank account circa 2002
           | when I lived there. (The post office also worked.)
        
           | parhamn wrote:
           | Probably because most Americans live in lower density cities.
           | Fresh food distribution is a lot harder in low density areas,
           | and that is probably why 7-11 focuses on microwavable wings
           | and hotdogs in the US.
           | 
           | A good NYC bodega is as stacked as a 7-11 in Tokyo. Really
           | good fresh baked goods and they'll cook up anything you want
           | for you too.
        
             | chipgap98 wrote:
             | But 7-11s in Japan seem better than American convenience
             | stores in similar density areas (from my experience)
        
         | forgetfreeman wrote:
         | I feel like the parent company is going to have an interesting
         | time of it when convenience store wages collide with stocking
         | and food prep processes more complicated than "load hotdog
         | roller then studiously ignore for the entirety of shift",
         | especially in the markets that are currently served by 7-11.
        
       | RcouF1uZ4gsC wrote:
       | As we all know, "gas station sushi" enjoys a special place of
       | trust in American culture.
        
       | corey_moncure wrote:
       | Please bring the salmon jerky.
        
       | philip1209 wrote:
       | 7-11 in Japan is a way of life.
       | 
       | I've been to an American 7-11 once or twice in my life. (I didn't
       | want to go back.)
       | 
       | In Japan, I went at least once daily - sometimes twice per day.
       | They almost function the role of a NYC bodega, but with more and
       | fresher food options. In addition, they often have a stack of
       | microwaves run by the staff, allowing for inexpensive, fresh, and
       | warm meals.
        
         | Loughla wrote:
         | 7-11 here in the States tends to be a great place to get
         | stabbed and/or purchase illegal drugs, in my experience.
        
           | throwup238 wrote:
           | Here their parking lots are used to stage large illegal
           | street racing competitions.
        
           | le-mark wrote:
           | 7-11 used to have really great fresh brewed coffee. It been
           | about 10 years since I moved and no longer go there. But it
           | used to be the best gas station coffee around imo.
        
         | Graziano_M wrote:
         | When I was there last I had an egg salad sandwich almost every
         | day.
        
           | shermantanktop wrote:
           | Tamago sando! The hot dog bun version is a little odd to me.
        
         | xianshou wrote:
         | 7-11, Family Mart, and Lawson are the holy trinity of konbini
         | (convenience stores)
        
           | wesapien wrote:
           | I stayed in Japan for two months and some days I don't feel
           | like sitting down for food. I go to a a grocery store (or
           | supermarket) and grab food there to take home. If there's
           | none along the way, I go for konbini.
        
       | navbaker wrote:
       | 7-11 spam musabi is amazing if you're ever on one of the Hawaiian
       | islands
        
       | the__alchemist wrote:
       | The video mentions at least twice that gas is one of the two main
       | revenue sources of 7-11 in USA.
       | 
       | A: How common is this? 7-11s don't serve gas where I've seen. B:
       | Is this accurate re profits? My understanding was that gas
       | stations make their money from the convenience store vice fuel.
       | (This is in direct contradiction)
       | 
       | Unrelated: Is it normal in marketing to refer to customers as
       | "targets"? (See around 75% through the video for one example)
        
         | malwrar wrote:
         | In my (midwest) experience maybe in cities 7-11s are primarily
         | convenience stores, but once you drive out into the
         | suburbs/country they're always gas stations. Until I started
         | living in cities I wasn't even aware there _were_ convenience
         | store 7-11s!
        
           | bane wrote:
           | The weird ones are in the lower density American suburb/urban
           | transition area where many of the 7-11s are setup as if they
           | could have gas pumps but don't and act as drive-up
           | convenience stores/small groceries.
        
         | Molitor5901 wrote:
         | In some places they do, such as the northeastern United States,
         | but it seems like it might be more of a partnership with a gas
         | provider branded as 7-11.
        
         | greenthrow wrote:
         | It's a commonly believed lie that gasoline is not profitable.
         | It is the main profit center for all gas station chains.
        
           | StanislavPetrov wrote:
           | That may be true of chains, but for ~20 years a close family
           | friend owned an independent gas station with a small
           | convenience store and they made 4-5x more in the store than
           | the ~1c per gallon of gas they sold. The margins on Soda,
           | candy and cigarettes were absolutely massive.
        
         | next_xibalba wrote:
         | > The video mentions at least twice that gas is one of the two
         | main revenue sources of 7-11 in USA.
         | 
         | Definitely. 7-11 is nationwide with thousands of locations and
         | the majority of those found outside huge, built-up metros sell
         | gas.
         | 
         | > Unrelated: Is it normal in marketing to refer to customers as
         | "targets"? (See around 75% through the video for one example)
         | 
         | Yes. I worked at a place where we called them "military aged
         | males." /s
        
       | alekratz wrote:
       | it's kind of disappointing that they're focusing on food in this.
       | I get that it's a quarter of their revenue, but one of the things
       | that makes japanese convenience stores so convenient is that you
       | can do more than just buy stuff. like, they often have printers
       | and scanners if you need to make a copy of something or print
       | something off. or if you're a tourist and you're taking the train
       | someplace and have too much luggage, you can get it shipped to
       | the hotel at your destination via 7/11. that's the kind of thing
       | I would love to see in a convenience store.
        
       | ambarp2 wrote:
       | 7-11 (the corporation) is owned by one of its own Japanese
       | franchisees, Seven & I Holdings.
       | 
       | https://en.wikipedia.org/wiki/7-Eleven
        
       | ajb wrote:
       | Interesting. 7-11 is one of the example's in Rumelt's book on
       | strategies[1]. In the chapter on 'pivot points' (by his
       | definition, areas where effort yields significant reward) he
       | outlines that 7-11 focuses on different things in Japan vs China.
       | In Japan, they believe that the customer is easily bored and
       | requires their stores to stock many choices, and carefully track
       | which are rising and falling in popularity in each area, to avoid
       | them seeking out novelty at competing stores. In China, they
       | focus on attracting customers by having Japanese-style "spotless
       | interiors and white-gloved service", a much more pleasant
       | experience that traditionally found in stores in China.
       | 
       | I was wondering what this said about the US customer. But it
       | sounds like the US operation was just not as well run and needs
       | to catch up.
       | 
       | [1] Good strategy, Bad Strategy, 2012
        
         | mathgeek wrote:
         | Not sure of the structure in Japan and China, but US 7-11s are
         | franchised and thus the individual owners have a huge effect on
         | the base level of service and upkeep. There are many
         | stereotypes that it wouldn't be appropriate to get into here,
         | but the quality of individual stores can vary a lot.
         | 
         | They are also known as a place to buy huge sodas, tobacco, and
         | energy drinks, but many other convenience stores also provide
         | those.
        
         | alephnerd wrote:
         | > In China, they focus on attracting customers by having
         | Japanese-style "spotless interiors and white-gloved service", a
         | much more pleasant experience that traditionally found in
         | stores in China
         | 
         | In Asia, 7-11, Circle K, GS25, etc are all "upscale"ish outside
         | of JP/SK/TW.
         | 
         | They can't compete at the price point that a local bodega or
         | street vendor in Dongguan, Diliman, or Da Lat so they segment
         | themselves as slightly more upscale. Sort of like how Target
         | differentiates itself from Walgreens and CVS.
         | 
         | The whole point is that because they're
         | Japanese/Korean/Taiwanese they are much more "luxury" than a
         | local brand.
        
       | varispeed wrote:
       | Have warm memory of 7-11 in Japan. Basically they had only cash
       | machine that I could use to withdraw some money as all other in
       | the area refused my cards. Sort of saved my life in a way.
        
       | underlogic wrote:
       | 711 food in the US is sugar saturated to a comical degree. This
       | store will hurt you. I think there's grounds for class action.
       | That's what happens when you track and then promote the most
       | addictive products of the company inventory
        
       | petulla wrote:
       | 7/11 just opened its largest store in Taipei. It really bears no
       | resemblance to the US stores.
       | https://www.youtube.com/shorts/5mnlYjgeGxQ
        
       | yinser wrote:
       | This made me curious how much smokeless tobacco products like
       | vapes and Zyn offset the losses they talked about in combustible
       | tobacco products.
        
       | sdsd wrote:
       | I spent so much time on an imageboard called 711chan, as a teen.
       | It's actually still around: 711chan.wtf.
       | 
       | Wanting to contribute to leh /i/nsurgency nonsense was kind of
       | how I got into programming. Not related to TFA, but that's what
       | it made me remember.
        
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       (page generated 2024-07-05 23:00 UTC)