7-Eleven Bets Big on Japanese-Style Fresh Food to Fuel US Growth
Plano, TX – Seven & i Holdings, the parent company of 7-Eleven, is embarking on a multi-billion dollar strategy to revitalize its US presence by mirroring the fresh food success of its Japanese convenience stores, known as konbini. This ambitious plan comes at a critical juncture for the company, following a thwarted takeover bid and increasing pressure to demonstrate independent growth.
For decades,konbini have been a cornerstone of daily life in Japan,celebrated for their consistently high-quality,ready-to-eat meals – from seasonal bento boxes to the famously beloved egg salad sandwiches. now, 7-Eleven aims to bring that same culinary standard to its over 13,000 stores across North America.
Leading this transformation is Stephen Dacus, a Japanese American executive with a 30+ year retail career, including a tenure at Walmart. Appointed CEO of Seven & i just three months ago, Dacus is tasked with proving the company can thrive independently after Alimentation Couche-TardS $47 billion takeover attempt fell through in July, triggering a significant drop in the company’s stock price.
A Shift in Strategy: From Japan-Centric to Global Growth
with the Japanese retail market becoming increasingly stagnant, Seven & i is looking to overseas expansion for future growth. Dacus believes the key lies in elevating the food offerings at US 7-Elevens. “Whether it’s hot food or cold food or any kind of food, we have to lean into how we improve the quality and the experience,” he stated in a recent interview. “That’s what Japan does exceptionally well.”
The company is considering investing over $13 billion in overseas expansion over the next five years, with a significant portion earmarked for the US market. This includes store renovations, the addition of over 1,000 in-store restaurants, and the advancement of a robust supply chain to support a wider range of freshly prepared 7-Eleven branded foods.
The Egg Sandwich as a Symbol of Change
The first, and perhaps most symbolic, step in this culinary overhaul? the launch of the Japanese-style egg sandwich. Inspired by the overwhelming popularity of the sandwich among American tourists in Japan, 7-Eleven is meticulously recreating the experience stateside. A team in Texas has been working directly with Japanese suppliers to master the production of shokupan – the incredibly soft, fluffy “milk bread” – and source authentic Japanese mayonnaise, aiming to deliver what Dacus calls “the heavenly pillow thing.”
Navigating a Competitive Landscape
However, 7-Eleven’s foray into premium prepared foods won’t be without its challenges. The US convenience store market is fiercely competitive, with numerous operators vying for a share of the growing demand for fresh, convenient meal options. Furthermore, 7-Eleven will be competing directly with established fast-food chains.
“Prepared food is increasingly what sets different convenience brands apart,” notes Jeff Lenard, Vice President at the National Association of Convenience Stores. “Prepared goods have relatively high profit margins, particularly critically important for convenience stores that face declining sales of traditional staples, including tobacco and gasoline.”
A New Approach to Global Operations
Dacus acknowledges past shortcomings in the company’s international strategy, admitting to a previously “low-risk, low-return approach” and a tendency to be overly focused on the japanese market. He believes a more aggressive, proactive approach is necessary to unlock the full potential of the 7-Eleven brand globally.
While replicating the Japanese konbini model in the US won’t be a simple undertaking, Dacus and Seven
