CONVENIENT SUCCESS

$46 billion in sales
for food retail chain boasting 24/7 profits!

ABOUT 7-ELEVEN

7-Eleven, Inc. is the premier name and largest chain in the convenience retailing industry. Based in Dallas, Texas, 7-Eleven operates, franchises or licenses approximately 7,800 7-Eleven® stores in North America. Globally, 7-Eleven operates, franchises or licenses more than 35,600 stores in 17 countries. During 2007, 7-Eleven stores worldwide generated total sales of more than $46.6 billion. Named the #1 Franchise Opportunity for 2008 by Entrepreneur magazine, 7-Eleven is franchising its stores in the U.S., and is expanding through organic growth, acquisitions, and
its Business Conversion Program.

Find out more information online at www.7-Eleven.com.

In the New York metro area alone, there are now 65 7-Eleven stores and the 100th independent store to join the franchise is in Queens Village. While Slumdog Millionaire demonstrates the game-show route for a million-dollar payday for Jamal Malik, in the real world, many Indians, as well as other nationalities, are turning to Slurpees and Big Gulps to fuel their road to success. 7-Eleven, Inc. rolled out the red carpet for the 100th independent U.S. store to join the 7-Eleven franchise with a grand opening celebration at the Queens Village store on March 27th.

“Unlike other convenience store franchises, 7-Eleven is a true partner with our entrepreneurs and we provide a proven system of operation that includes our expert merchandising assistance, retail information system, infrastructure of daily delivery of fresh foods and bakery goods, store support and ongoing business advisory service provided by our field consultants,” said Jeffrey Schenck, 7-Eleven’s senior vice president for national franchise and real estate. Despite recessionary conditions, converting independent stores to the 7-Eleven brand plays a prosperity role with entrepreneurs.

The 3,800-square-foot Queens Village store at 219-17 Hillside Avenue is owned by Piyush “Peter” Patel along with his brother and uncle. Patel, a licensed pharmacist, whose family owns several other retail establishments in New York and Connecticut, was attracted to 7-Eleven’s proven approach to convenience store operations.

New York business, community and political leaders, together with 7-Eleven management were on-site to recognize the 100th Business Conversion Program (BCP) store milestone with Hot 97 FM supplying the sound track to keep the celebration in the hip-hop and R&B groove. Family entertainment and complimentary food and beverage sampling were all provided.

“7-Eleven leverages its scale to directly impact and improve store operations,” said Piyush Patel. “We recently converted our J.D. Foods business to 7-Eleven earlier this year, and, despite the traditionally slow winter months, we are already experiencing 30 to 35% higher sales volume.”

“High quality products, low pricing and beautiful and clean stores are what gives the 7-Eleven stores an edge over the corner convenience store,” said Paul Kandhari, franchise owner of a lower Manhattan 7-Eleven store at 140 Church Street who opened his store in July 2008. “The Fresh Foods program is very popular at our store and we have seen a substantial increase in revenue since becoming part of the 7-Eleven family.”

“We welcome 7-Eleven to Queens Village and look to the company as a good neighbor who is investing in our community,” said Albert F. Pennisi, president of the Queens Chamber of Commerce.

Consistently a high-ranking franchise, 7-Eleven’s Business Conversion Program is an alternative franchising model that unlocks the opportunity to convert existing, independent convenience-type stores to the 7-Eleven® brand by licensing the company’s proprietary retail business system while maintaining all of the business standards and services of this traditional franchise system.

The branding program includes the installation of new equipment and fixtures to brand the store and meet franchise trademark standards including counters, gondola system, Slurpee® and Big Gulp® beverage machines, roller grill, fresh foods, bakery and ice cream novelty cases, ATM and money order machines, point-of-sale cash registers, back room computer as well as electrical and plumbing upgrades.

Piyush “Peter” Patel, age 32, moved to the United States in 1981 from the city of Ahmedabad in Gujarat, India. Patel, who is married and the father of two young children, graduated from St. John’s University in 2001 with a Bachelor of Sciences degree.

Patel’s retail roots run deep, as he watched in admiration as his father built a thriving card and gift store in Astoria, Queens. “A rite of passage in our home was to work for my father when we were growing up,” says Patel, co-owner of the 100th independent convenience store to join the 7-Eleven franchise.

Today, Piyush Patel co-owns the Queens Village 7-Eleven store along with his brother Balvant “Mike” Patel and his uncle, Lalit “Larry” Patel. The 7-Eleven Queens Village store also features an on-site Greyhound bus depot that is owned and operated by the Patels. A busy entrepreneur, Patel oversees other businesses including a card and gift store in Howard Beach, Queens and a motel in Stratford, Connecticut.

“We turned to 7-Eleven for the opportunity to convert our store because we wanted to make a positive change for the neighborhood,” said Patel. “I looked into a number of franchise opportunities but the only one that resonated with me was 7-Eleven. The company assigns a business consultant who comes into my store each week to help with effective merchandising, day-to-day order management and maximizing merchandise profits. I’m proud to be part of the 7-Eleven store brand in Queens,” says Patel.

The Conversion Program
Through the Business Conversion Program (BCP), the company seeks qualified independent operators of gas stations as well as convenience, liquor or small grocery stores, and presents them with the opportunity to re-brand their business as a 7-Eleven® store.

Because independent operators own or lease the land and building, they are responsible for making property upgrades to convert to 7-Eleven and maintaining the building over the 10-year agreement. To ensure high-quality image standards, 7-Eleven makes a co-investment in facility upgrades with proprietary signage and store equipment. The retail chain’s average investment per site is $250,000.

In addition, the operator pays a franchise fee of $20,000, plus a refundable security deposit. Merchandise gross profits are shared like 7-Eleven’s traditional franchise format; however, the operator splits 20 percent with 7-Eleven. At gasoline sites, operators can continue using their current brand of gasoline or use the 7-Eleven brand. In either case, operators arrange for supply, control pricing and do not share gasoline profits with 7-Eleven.

Although the economics of BCP are different from 7-Eleven’s traditional franchise, the business elements are identical. BCP Franchisees follow the same standards as traditional Franchisees, such as 24-hour operations and merchandising purchases. 7-Eleven provides the same support and services, such as, a proprietary business and information technology systems, proprietary products and equipment, weekly business counseling, invoice and payroll processes.•