7-Eleven to Convert Mother Hubbard's Cupboard Stores

Will remodel 14 locations, upgrade foodservice, expand product mix, offer for franchise

DALLAS & MOLINE, Ill. -- 7-Eleven Inc. is converting 14 northwestern Illinois Mother Hubbard's Cupboard (MHC) stores to 7-Eleven stores and offering them for franchise. As part of the company's growth strategy, 7-Eleven purchased these stores in 2010.

(Click here for previous CSP Daily [image-nocss] News coverage of 7-Eleven's purchase of the Mother Hubbard's stores.)

All 14 MHC stores offer motor fuel service and operate 24 hours a day, seven days a week.

"We plan to remodel these outlets to become 7-Eleven convenience stores and offer the franchising opportunity to people in the community that want to run their own business. 7-Eleven has a proven, successful system along with the support of the world's largest convenience retailer," said Bill Engen, 7-Eleven's East region senior vice president.

7-Eleven is investing in a remodel of these stores, which includes adding new coffee bars, hot foods equipment and its Slurpee beverage with six-barrel machines. The stores already have a roller grill, but will receive a second one as part of the conversion program to accommodate the product assortment of Big Bite hot dogs, Buffalo chicken rollers and breakfast and other taquitos.

In addition, the stores will introduce their customers to 7-Select, the retailer's private brand of products, price 10% to 20% less than comparable products.

These stores will benefit from 7-Eleven's distribution network that provides fresh food delivery on a daily basis which includes bakery items and hand-prepared sandwiches, salads, cut fruits and vegetables.

"7-Eleven provides an attractive business opportunity," said Engen. "Our franchise model supports the local business owner with infrastructure and consulting which enables them to operate great stores and make product assortment decisions that meet neighborhood needs. Franchisees from the local community are in the best position to know and respond to their local retail needs, which, in turn, builds customer loyalty and sales."

Qualified MHC store managers will be given the opportunity to apply for a 7-Eleven franchise.

7-Eleven provides the land, building, equipment and a turnkey operation for its franchisees. The franchise fee for these stores is based on each MHC store's sales history and whether the facility includes a laundromat. The fee is expected to range from around $60,000 to $460,000 with six of these stores offering laundry services. Other franchisee start-up costs include the store's inventory, supplies, business licenses, permits, bonds and cash register fund.

7-Eleven's franchise model is based on a gross profit split rather than a percent of total sales unlike most franchise companies. This increases the focus on co-prosperity and the franchisee's success because each shares in the profits.

The company is franchising its stores in the U.S., and is expanding through organic growth, acquisitions and its Business Conversion Program.

More than 5,100 of 7-Eleven, Inc.'s 6,200 U.S. stores are now franchised. Currently, there are 360 7-Eleven outlets in the state of Illinois, 92% of which are franchised.

MHC locations that will become 7-Eleven convenience stores include stores in Moline (4), Coal Valley, Colona, East Moline (2), Silvis, Rock Island (4) and Sherrad.

Dallas-based 7-Eleven operates, franchises or licenses more than 8,400 7-Eleven stores in North America. Globally, there are approximately 40,900 7-Eleven stores in 16 countries. During 2010, 7-Eleven stores worldwide generated total sales close to $63 billion.

Want breaking news at your fingertips?

Get today’s need-to-know convenience industry intelligence. Sign up to receive texts from CSP on news and insights that matter to your brand.


More from our partners