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7-ELEVEN FRANCHISE OWNERS ASSOCIATION OF CHICAGOLAND
November 2012
AGAIN!
Missed Opportunity –
By Hashim Syed, FOAC Board Member
Yes, once again, SEI has blown it. What
could have been an opportunity for SEI to
showcase 7-Eleven in all its glory with the opening
of a very prominent store in the city of Chicago; has
instead showcased SEI’s repeated pattern of missed
opportunities.
I was invited to attend the grand opening by my FC,
along with fellow FOAC board member Liaqat Ali.
While we were both very impressed with the size of
Why does SEI
continue to
make the same
mistakes
over and
over again?
Subway, and a Honey Baked Ham restaurant located
within the same strip center as this brand new
7-Eleven. What could SEI’s planners and demographic
experts be thinking?
this new 7-Eleven (probably the largest in the city); I
couldn’t help but shake my head in disappointment.
Why does SEI continue to make the same mistakes
over and over again?
What mistakes? Please allow me to explain.
www.7-elevenfoac.com
Telephone: 312-501-4337
Fax Number: 877-387-FOAC (3622)
Email: [email protected]
Please call the FOAC Hotline with
any problems that require immediate assistance: 312-253-7342
Direct Competition
The new 7-Eleven is located in an area surrounded
by direct competition that will negatively impact
the store’s sales of coffee, fresh food, hot food, and
snacks. Not only is there a Jewel grocery store less
than a block away, but there is also a McDonald’s
on the corner and a Dunkin Donuts a few steps
from there. Even worse, there is a Chipotle, a
(Continued
on page 5)
Congratulations
Charlene Brandt!
Will You Be Joining Us?
Please RSVP Today!
RSVP email: [email protected]
The FOAC’s Annual Holiday Party & Trade Show
is November 8th
Please join us for the FOAC’s annual holiday party and trade show, which takes place on Thursday,
November 8th in the Grand Ballroom of the Holiday Inn North Shore. Last year’s event was so wellattended, that we had to expand our space to accommodate all of our trade show vendors, our
franchisees and their guests.
Last month our very own Charlene Brandt
was recognized by the City of Chicago with
a resolution which was presented to her by
the 2nd Ward Alderman Robert W. Fioretti.
The resolution applauded Charlene for her
dedicated commitment to the community,
her many hours of volunteer work, and the
support she has shown by participating
in numerous special events and city-wide
initiatives.
Charlene, a Certified Business Consultant
and Community Events Coordinator for
Market #1914, has been with 7-Eleven for the
past 6 years. Accompanying Charlene during
the presentation were Bill Engen, SVP – East
Operations and Brian Trout, Heartland Zone
Manager. Alderman Fioretti is on the far
right. Congratulations Charlene! We are very
proud of you and are grateful for all you’ve
done to help our franchisees and promote
7-Eleven.
The event begins with the trade show from 2:00 to 5:30 pm in the ballroom, followed by a cocktail
hour in the atrium (5:30 to 6:30 pm). An awards ceremony will take place at 6:45 pm, before
dinner and entertainment, which starts at 7:15.
“I know that this is a very busy time of year for all of us, but our holiday trade show and party
should not be missed,” said Joe Rossi, FOAC president. “With even more vendors than last year,
franchisees will enjoy some amazing one-day only specials and money-saving deals,” he says.
“We’re looking forward to seeing everyone!”
Details at a Glance
Date:
Thursday, November 8th
Time:
Trade Show – 2:00 to 5:30 pm
Cocktail Hour – 5:30 to 6:30 pm
Awards Ceremony – 6:45 pm
Dinner – 7:15 pm
Entertainment – 8 pm
Place:
Holiday Inn North Shore
5300 W. Touhy Avenue, Skokie, IL
Tickets: Each franchisee will receive two tickets at no charge, but RSVPs are required.
Additional tickets are available for $70 each.
RSVP: Please RVSP for the holiday party and trade show by visiting the FOAC website at
www.7-ElevenFOAC.com (click on CALENDAR of EVENTS). If you have questions or need to order
extra tickets, please contact Guliz Sonmez, FOAC Executive Secretary at [email protected]
FOAC Newsletter Editorial
Contacts
Planner/Art Director: Hashim Syed
847-293-8551
[email protected]
Editor: Alisa Bay
847-266-9053
[email protected]
Graphic Designer: Jacquelyn Aven
630-922-8500
[email protected]
Executive Secretary: Guliz Sonmez
847-971-9457
[email protected]
The FOAC newsletter is printed by Semper Fi
Printing, located in Arlington Heights, IL
www.7-elevenfoac.com
Telephone: 312-501-4337
Fax Number: 877-387-FOAC (3622)
Email: [email protected]
Please call the FOAC Hotline with any problems that require immediate assistance:
312-253-7342
Rereading and
Weeping
Once Again, Store Agreement Leans in
By Bob Strauss, FOAC Board Member
Franchisees never know what the next franchise store
agreement (contract) will look like, but there are a
couple of things we can surely bet on; every store
agreement will get longer and will give 7-Eleven
more.
When Dallas introduced the 2004 store agreement, I read it and wrote
an article for our newsletter. Many of my Dallas friends told me my
comments were reactionary, dark and totally wrong. Several years have
passed and it’s a good time to
review those words. I titled
that 2004 article “Read
Some call it corporate
It and Weep.”
greed. Some call it stealing.
I call it abandoning the
foundation of our franchise
relationship.
From the time when I
first began my 7-Eleven
life back in 1974, there has
always been one fundamental
guiding light in every version of
the store agreement. That was the principle that we, franchisee and
7-Eleven, shared. It was always understood that any financial benefit
that a franchisee derived from operating their 7-Eleven store had to be
shared with SEI. SEI also had an obligation to share income related
to franchise store operations. This was an undeniable given in the
7-Eleven franchise relationship.
It’s evident that the new contract throws that principle of ethics and
fairness out the window. The very corporation that postured itself
as good, fair and honest has just turned things upside down. SEI has
exposed itself and dares franchisees to pass judgment. SEI has shattered
its illusion of integrity.
The new contract rattles off every new franchisee obligation. It
lists various additional charges that SEI will hit franchisees with. It
manacles franchisee independence. It details clever new ways that SEI
can cut another pound of franchisee flesh. In a cruel response to the
7-OFF class action settlement related to SEI receiving rebates,
discounts, allowances, equipment and other benefits that weren’t shared
with franchisees, the new contract provides gaping backdoor loopholes
SEI’s Favor
for SEI to receive limitless benefits from vendors that won’t have to be
shared with franchisees.
In the ultimate act of
insult, it details that
franchisees can’t be
awarded punitive or
exemplary damages,
even when SEI is
proven to be guilty!
The new contract
rattles off every new
franchisee obligation, and
lists additional charges that
SEI will hit franchisees
with.
There’s more...
SEI will pocket all internet profits. Who is soon going to be paying
the credit card fees? What’s about to happen to gas commissions? SEI
only has to share base rental income for electronic services. SEI won’t
share the massive money it’s already making from the sale of store data
to outsiders. SEI even takes full rights and benefits from franchisee
suggestions and ideas. God Bless America.
If SEI directed their team to craft a mean spirited contract, then the
SEI lawyers surely earned their year-end bonuses.
The words of the contract tell the franchise world that the game rules
have changed. We no longer share. SEI takes and takes whenever and
wherever possible. SEI salesmen can smile and say this and that aren’t
the intent, but the judges will only read the words, and the meaning
of the words
could not be
any clearer.
SEI
READ IT AND
WEEP!
Read
it and
weep.
The Art of Custom Retailing
By Bob Strauss, FOAC Board Member
It’s no secret that 7-Eleven franchisees
have varied backgrounds and customs,
but there’s at least one custom shared
by all; the custom of going into business to make some money.
Making money requires much more than just selling stuff. Good expense control is critical. For many franchisees, the ability to make money from every sales
transaction will be the difference between prosperity or a never-ending battle
to keep their heads above water. Custom retailing is a method, or mindset that
will help most stores make more money. Custom retailing (CR) is a custom we
should all share.
CR involves determining the cost of products, the consideration of various factors
(that will soon be discussed), and selecting an appropriate retail, category by category, item by item. Custom retailing requires time, but as they say, “time is money.”
I opened my first store the year that the Vietnam War ended. Back
then CR was among many things that were a part of the 7-Eleven
system. SEI recognized that CR required several assumptions:
1.
Many people are willing to pay a premium for convenience.
2.
We sometimes carry an item that no one else in the neighborhood sells or
not in that size; we’ll refer to those products as ‘Blind Price Items’.
3.
If we can’t get a fair cost on a product, then we should still price it to get
a fair profit. If it won’t sell at that retail, then let the supplier know that
you won’t carry it.
4.
Customers assume that they’ll pay extra in a c-store, so don’t disappoint
them. You’ll only be giving money away.
As things got more automated, 7-Eleven moved away from encouraging CR. As
less stores utilized CR, franchisees began to bring a declining percent of sales
to their bottom line.
If you can’t make decent money on each transaction, then why are you even
carrying that item? If it’s a unique low gross item like newspapers, then you
may not have any options, but otherwise there may be little benefit to selling
lots of something that makes you little.
If it’s a “Blind Price Item” then the retail you assign becomes the recognized
retail for it. Nobody in your area carries it, so be sure to make plenty of money
from it. Make it one of your focus items too!
Here’s an example to help further illustrate how to
apply CR.
You carry two brands of yogurt. Both brands sell well. Due to cost and SRP,
you make 43% on one brand and 31% on the other. That’s a difference of
12 cents profit/sales $. Why not make just as much on both brands?
Never say never. Recent increases in SRPs demonstrate that 7-Eleven
has begun to again embrace making a fair profit on most transactions.
Consider all of the factors and make your CR call. You can use the same
method with other items as well.
Why not
make
just as
much
on both
brands?
How about candy? You probably make 45% or much more on most candy
items. Why should you accept a lower profit on one brand? How about a
nutrition bar, soda, juice, water, condom? Apply the CR mindset and before you know it you’ll take back ownership of your store’s bottom line.
Does it make sense to CR all items? Absolutely not. So before you go running to your
computer to do some custom retailing, please consider the following points.
Is it an item that sells well? Making more money on a slow seller won’t contribute much more profit. It’s more critical to focus on strong sellers. Increasing the
profit on an item that sells well helps you and 7-Eleven make more money.
Does your competition sell or promote that item? Can you afford to be above their
retail? How do you think your customers would react? Would they notice?
Lucky Winner!
If you have questions about Custom Retailing, please email Bob Strauss at
[email protected].
Keep Selling
Those Tickets...
It Could Be YOU!
The Illinois Lottery recently presented an oversized
bonus check for $10,000 to 7-Eleven store #27070, located
at 847 Dodge Avenue in Evanston, Illinois. The lucky store
sold a $1 million winning Gold Bullion instant ticket. “I always ask our customers if they want to try
their luck with a lottery ticket, and I remind them when the jackpots are high,” said Helen Shamoon,
who has owned this 7-Eleven store for 11 years. “A lot of my customers play Gold Bullion,” she adds.
“It’s a very popular game and it was exciting to have a winner!”
4
Helen during the check presentation with
7-Eleven Field Consultant Mike Drop.
Pabst Teams Up with 7-Eleven for
Even Greater Success in 2013
The Pabst Brewing Company is ex-
tremely happy with 7-Eleven’s growth
of the portfolio in 2012. PBC is now
ready to roll out their 2013 Marketing
and Promotional Plan to fuel growth at an even higher
rate. Pabst Brewing is aligned with 7-Eleven, as “Connecting to the Millennial” is their key strategy to propel
growth.
Nationally, PBC will be focused on Pabst Blue Ribbon
with several exciting events that will engage the consumer through Sports, Art, and Social Media, as well
as localization of community supported events. PBR
is now in the fourth year of double digit growth, delivering 22% more sales at
7-Eleven in 2013. While Innovation is very important to 7-Eleven, “Re Innovation”
of a Brand can add just as much excitement to the store and the category!
Regionally, PBC will re-energize the Old Style Brand in 2013. The company will
continue to focus on traditional sporting campaigns with the Cubs and Bears. New
activities to the Old Style Marketing Plan will include themes on doing things “Chicago Style” as well as product and package innovation.
PBC looks forward to continued success with 7-Eleven for both Brands. Thanks
again for your continued success, but hold on for a tremendous 2013!
FOAC Merchandising Committee
Attends NACS
FOAC Merchandising Committee members Joe Rossi, Hashim
Syed, Bob Strauss and Hetal Patel
attended the NACS show in Las
Vegas last month. The NACS event
(National Association of Convenience
Stores) is the largest of its kind, with
attendance close to 25,000!
“Everybody who was anybody was
there,” said Hashim Syed, who along
with the other members of the FOAC
Merchandising Committee, made
many new contacts including vendors who showed an interest in participating in the FOAC’s annual trade
show next year. “I highly recommend
NACS to my fellow franchisees, as I
know they would gain a great deal of
knowledge and useful information
by attending.”
NACS features three days of general sessions, 50+ educational sessions, networking
opportunities, and a trade show. The 2013 NACS Show will take place October 12th
through the 15th in Atlanta. Highlights from the 2012 NACS Show and information on
the 2013 NACS Show can be found at nacsshow.com.
Missed Opportunity
(continued from page 1)
Lack of Design
What would have made a difference and given this
7-Eleven a fighting chance for survival would have been
a modern, updated design – something that would have
captured the audience that we know should be ours (the
teenagers, the young urban professionals “yuppies” and
females).
Instead, SEI chose to stick to its old, tired, “cookiecutter” approach to store design. Again, I ask, what are
they thinking? Why not consider bringing an expert on
board? An interior designer would know exactly what to
do to create a look that would be inviting, welcoming,
exciting and current.
Perhaps SEI should look at Walgreens as an example
of good store design. Beautiful new Walgreens stores
are being built all over Chicagoland, many of which are
close to 7-Eleven stores. If you had a choice between
a big, brightly lit, Walgreens or one of our 7-Elevens,
which would you choose? Wake-up, SEI! We’re losing
customers!
Profitability?
Wake-up, SEI!
We’re losing
customers!
Thankfully, this
store is company
owned so a
franchisee isn’t
faced with an uphill
battle trying to make
money. With competitive
businesses in the immediate area and a design that lacks
any sort of excitement or creativity, I can’t imagine this
store turning a profit. Also, due to its large size, it will
require double the amount of coverage by employees in
order to properly maintain it. I only hope that SEI realizes
what they’ve done and the mistakes that have been made,
and will keep it running under their own management.
Save theDATES!
FOAC Monthly Board Meetings
✔ Thursday, November 15th*
✔ Thursday, December 13th
✔ Thursday, January 24th
✔ Thursday, February 28th
Holiday Inn North Shore
5300 W. Touhy Avenue - Skokie, Illinois
10:00 am – 4:00 pm • Lunch will be served.
FOAC Holiday Trade Show and Party
✔ Thursday, November 8th
All 7-Eleven franchisees are invited to attend our monthly board
meetings and to join us for lunch. As always, a variety of pertinent topics will be discussed and you will have an opportunity
to network with top vendors, those from the 7-Eleven corporate
office, and other 7-Eleven franchisees. These meetings are very informative and will bring you up to date
with the latest 7-Eleven news, so please do your best to attend. FOAC membership is not required in order
for you to join us, but you must RSVP to Guliz Sonmez at [email protected].
Please be sure to RSVP!
Come see for yourself what the FOAC is all about and learn what we are doing to support each other’s goals
and objectives. Board meetings are also a forum where you can express any concerns you may have about
your store. We look forward to seeing you!
*PLEASE TAKE NOTE: The November 15th board meeting will take place at the Red Bull North
America headquarters, located at 181 N. Wacker Drive in Chicago. Details coming soon via E-Alert.
New Product
Holiday Inn North Shore
5300 W. Touhy Avenue • Skokie, Illinois
Festivities begin at 2:00 pm.
See details on page 2 of this newsletter.
Looking Ahead
Upcoming General Meetings
Times and Locations to be Announced
✔ Thursday, January 17, 2013
✔ Thursday, April 4, 2013
✔ Thursday, June 13, 1013
✔ Thursday, September 12, 2013
Improves Accuracy
in Police Roadside Breath Testing
The Breathalyzer Equalizer is a revolutionary product that was professionally formulated by McCoy Moretz, MD FACS, to deal forthrightly
with a problem affecting citizens throughout the world, called Residual
Mouth Alcohol.
Mouth Alcohol has nothing to do with one’s true Blood Alcohol Concentration (BAC) and can produce an elevated false reading on hand held
roadside breath testing devices, currently used by police in the field. The
Breathalyzer Equalizer is made of all natural food grade ingredients,
which absorbs only the Residual Mouth Alcohol that can produce a false
positive breath test result on these roadside devices, which could potentially lead to a false DUI arrest
or unnecessary detainment.
There’s more than one way to flunk a roadside police breathalyzer test. The first way, of course, is to
be drunk. But, even if you’re NOT intoxicated after a single alcoholic beverage, the residual alcohol in
your mouth can cause you to register over-the-legal limit on a police roadside breath test. Even certain
mouthwashes, breath freshening sprays, asthma inhalers or other medications can trigger a false positive, putting you over the legal limit, when you’re NOT intoxicated.
That’s why there’s Breathalyzer Equalizer. It WILL NOT sober you up and it WILL NOT help you
avoid a DUI if you’re truly intoxicated. But, it will help ensure a more truthful and more accurate
breathalyzer reading, if stopped by the police and given a breath test, when sober. The system is not
perfect, and until breath testing devices are flawless, our team offers you The Breathalyzer Equalizer.
Breathalyzer Equalizer is an EASY-TO-USE, EFFECTIVE powder that helps innocent people avoid
being arrested for DUI when sober. For more information or to purchase products for your store,
please visit: BreathalyzerEqualizer.com or call 1-866-491-2129.

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