7-Eleven in the United States is gearing up for a transformation that will make it more like its Japanese counterparts. For a long time, convenience stores in Tokyo have captured consumers with their fresh food and popular items.
Seven & I Holdings, which owns 7-Eleven, aims to enhance its U.S. locations by incorporating high-quality prepared meals, such as Japan’s favorite egg salad sandwiches. The company noted, “We have been consistently highlighting our focus on food.” They mentioned that in Japan, fresh food makes up over 30% of total sales, and this strategy is expected to increase daily revenue by about 30% compared to competitors.
Looking to invest over $13 billion internationally in the coming years, much of this funding will go towards upgrades and supplier relationships to provide prepared meals in around 13,000 North American stores. Additionally, the company is planning to significantly increase its U.S. store openings from 125 to more than 250 annually, with an aim to add 1,300 stores in the next five years.
There’s a substantial opportunity for growth, although to realize it fully, “we need to build our organization’s capabilities and be proactive,” as noted by Seven & I. Japan’s 7-Eleven, boasting around 22,000 locations, is well-known for its affordable meals and various services, while the U.S. has about 9,500 stores.
One highly anticipated item in the U.S. is the egg salad sandwich, prepared with fluffy milk bread and Kewpie mayonnaise. A team based in Texas has already collaborated with Japanese suppliers to replicate these recipes. This has sparked considerable interest in food tourism online.
Influencer Darcy McKney, based in Washington, D.C., remarked on her experience, stating she flew to Japan just to try these offerings. She captured her findings in a TikTok video that garnered more than 4 million views.
On a trip to Tokyo, influencer Summer Marshall enjoyed similar items, including an ice latte and other trendy snacks recommended in online coffee hacks—her TikTok also received significant attention, highlighting the differences between U.S. and Japanese convenience foods.
The buzz has notably increased interest in Japan’s 7-Elevens, with Google searches for “7/11 Japan” spiking by 5,000% during the summer. Some travel agencies are even now providing guided tours of these convenience stores.
However, the market in the U.S. may prove to be more challenging. For years, 7-Eleven has been more synonymous with snacks and beverages rather than prepared foods. Competing brand FamilyMart exited the U.S. market in 2015 after struggling to find a customer base beyond traditional fuel stops.
Amid this backdrop, Dacus faces pressure to validate his strategy, especially after rejecting a $47 billion offer from Canadian rival Alimentation Couche-Tard. Aside from food improvements, the company is also looking to expand its distribution apps.
Cultural differences play a role, too. In Japan, where many people live in small apartments with limited kitchen space, convenience stores become a frequent stop for meals. This doesn’t occur to the same extent in the U.S., where logistics models haven’t adapted similarly to meet customer needs.
According to the National Association of Convenience Stores (NACS), foodservice sales have significantly increased, now comprising nearly 28% of total sales in the sector. Jeff Leonard, the Vice President of Media and Strategic Communications at NACS, noted that while drivers may come to stores weekly, people typically eat several times a day, which lends an opportunity for growth in this market.
The landscape is changing how convenience stores are viewed. A joke once made about eating a gas station sandwich now seems outdated as perceptions shift towards these stores being viable meal destinations.
