5 C-Store Chains Among 2017 Top Franchisees
Jan. 12, 2017IRVINE, Calif. -- Entrepreneur magazine has unveiled its 38th annual Franchise 500, ranking a convenience-store giant as No. 1 for the first time in nearly a decade. Two other c-store chains made the 500 cut, and two more ranked in the second tier of chains.
The list ranks the top franchise opportunities based on an evaluation of financial strength, stability, growth rate and brand power.
Click through to see what c-store brands made the list …
1. 7-Eleven
7-Eleven Inc.
The 90-year-old 7-Eleven convenience-store brand has implemented key tactics, including its retailer initiative program and co-prosperity model, to make the chain the top performer, Entrepreneur said.
“I think what we’re doing now is recognizing just where the consumer is, like we did back in the 1920s when we started," CEO Joe DePinto told Entrepreneur. "We’re tailoring our products to meet their needs. … Quite frankly, convenience stores are in a pretty good position because our inventory is so close to customers. That’s something bigger boxes are struggling with. We’re really involved in our customers’ lives, and that involvement continues to grow.”
The heart of 7-Eleven’s success is its “retailer initiative” program, the report said. For many c-store chains, a corporate purchasing office determines all stores’ products. But 7-Eleven allows its owners to choose from thousands of products, customizing each store to its neighborhood.
“Most other stores push product based on what their vendor offers or what they can buy at discount. We are the opposite," Chris Tanco, executive vice president and COO, told the magazine. "We look at every store and say, ‘Who are our customers, and what do they want?’ ”
Irving, Texas, 7-Eleven operates, franchises or licenses more than 61,000 stores in 18 countries. Almost 11,000 of those are in North America, and 7-Eleven plans to increase its U.S. presence significantly in the coming years, it said.
Ninety percent of 7-Eleven stores in the United States are franchised. In 2006, 75% of the stores were owned by franchisees, said the report. In the past five years, the brand has added 1,500 units in the United States, including 500 business conversions, in which existing convenience stores are rebranded as 7-Eleven.
357. Circle K
Circle K
The Circle K convenience store chain got its start in 1951, when Fred Hervey bought three Kay's Food Stores in El Paso, Texas. The company began franchising in 1999. Now owned by parent company Alimentation Couche-Tard Inc., Laval, Quebec, Circle K franchises can be found in more than 20 states, as well as more than 10 other countries.
368. ampm
ampm
The first ampm location opened in Southern California in 1978. It now has 970 combination gas station and convenience stores operating in California, Nevada, Arizona, Oregon and Washington.
BP West Coast Products LLC, La Palma, Calif., is its parent company. In 2014, the company introduced its "to go" retail image that it offers to sites East of the Rockies.
Farm Stores (not ranked)
Farm Stores
Entrepreneur also listed chains that did not rank in the Franchise 500. Farm Stores was in that second tier of companies.
Farm Stores is a chain of drive-thru convenience stores operating mainly in Florida. The stores offer popular grocery brands and household items, including proprietary Farm Stores products, as well as prepared foods and fresh baked goods. With approximately 80 stores, Coconut Grove, Fla.-based Farm Stores has been operating stores since 1957. It began franchising in early 2015.
Street Corner (not ranked)
Street Corner
Street Corner, based in Topeka, Kan., also made Entrepreneur’s list of chains that did not rank in the Franchise 500.
After Peter LaColla and Daniel McCabe opened a restaurant called Street Corner Cuisine in a mall in Topeka, they noticed there was no place to buy cigarettes, newspapers or aspirin in the shopping center. To meet the need, the partners opened Street Corner, a convenience store with the look of an old-fashioned newsstand, in 1988. The new store was popular with both mall customers and employees, and the partners decided to sell their restaurant and concentrate on franchising Street Corner.
Street Corner’s approximately 40 locations sell snacks, beverages, newspapers, magazines and other items.
QSRs
Meanwhile, quick-service restaurants (QSRs) dominated the top 10 in the Franchise 500:
- McDonald’s (No. 2)
- Dunkin’ Donuts (No. 3)
- Jimmy John’s (No. 5)
- Dairy Queen (No. 6)
- Wingstop (No. 8)
Click here for the full food franchise list.
The Top 10
The UPS Store (No. 4), Ace Hardware (No. 7), Sport Clips (No. 9) and Re/Max (No. 10) filled out the top 10 spots in the Entrepreneur Franchise 500.
The top 10 brands have a few things in common, the report said.
“Their deep understanding of their customers helps determine exactly the kind of products and services to offer, which leads to streamlined inventory and lower overhead. Their laser focus and simplified systems help ensure new units stay open and minimal closures. With access to new data, customer information and technology, these franchises have become even stronger and more competitive,” it said.
“Entrepreneurs in every industry must constantly improve and adapt, and our Franchise 500 list is full of success stories,” said Jason Feifer, editor in chief of Entrepreneur. “No matter what their concept is, these companies—from booming newcomers to established industry dominators—tell us a lot about what it takes to keep up with current trends in the business world.”