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