- Philippine Seven Corp. is now offering a more cheaper franchise package for qualified investors
- The move is to be able to expand the reach of 7-Eleven stores in the nation
- The company also seeks to dominate the 24/7 convenience store market across the country
Are you a fan of the world-wide convenience store, 7-Eleven? Now you can own one if you have a million to invest!
And if you’re one of many who have been helped by the convenience that the 24-hour store brings, whether you’re in the Philippines or in other countries, then you’d be thankful to know that there might be more 7-Eleven stores opening up near you here in the country.
The U.S.-based store chain had only recently entered the Philippine market through the Philippine Seven Corp. (PSC), but now they are making the 7-Eleven franchising package more affordable in order to cement market leadership, even as competition in the 24/7 retailing format is increasing.
According to PSC President, Jose Victor Paterno, people who are hard-working and with a good track record can now enter their franchising program and invest around ₱1 million to operate a 7-Eleven store. This is a huge discount from the usual investor package price of ₱3.5 million.
Although there’s an existing number of other 24/7 convenience stores, they are locally-based and not available in a nation-wide scale. PSC, as the master licensee owner for 7-Eleven, can be labeled as the pioneer in the convenience store format in the whole Philippines.
Paterno went on to reveal that over the longer term, PSC would want to have 90 percent of its network of stores to be owned by franchisees, a ratio similar to Taiwan’s. As of today, PSC has a network of 1,760 stores all across the country, where 57 percent of these stores are owned by franchisees and 43 percent are corporate-owned. PSC’s chair, Jose Pardo, has expressed that the company’s goal is to reach 2,000 stores soon.
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He added, “We believe that this sector will remain crowded and competition [will become] more intense, but we shall capitalize on our first-mover advantage and economies of scale, to maintain our dominant position in the market.”
To their shareholders, Pardo said: “Your company has taken steps to protect and expand its leadership, recognizing that rewards for market share are especially strong in the convenience store sector. This involves not only an increased pace of expansion [in] areas contested by competition, but [also] strategic entry into new territories.” With the affordable franchise package they are now offering, the 2,000-store goal and new locations may not be far off.
The PSC President also added: “In the Philippines, the people with money don’t want to work; [while] the people who are willing to work, (they) don’t always have the money [to invest]. We have the money. We want the people who are willing to work… We’ll attract people who are really passionate about operating stores and who are willing to be there every day. We’ll invest in everything else.”
As for those who will still opt for the usual ₱3.5-million package, the risk-reward ratio will be different. With the franchisees for this package also investing in the location, they also take higher risks in exchange for higher returns. Franchisees of the more expensive package can also get back their investment in as early as six months or, on the flipside, lose their entire investment.
With the ₱1 million package however, the franchisees may not be making a lot, but they won’t lose money either.