Seven Eleven Signs '2023 Franchise Win-Win Agreement'

Choi Kyung-ho, CEO of Seven Eleven (right), and Gye Sang-hyuk, Chairman of the Seven Eleven Franchisee Council, are posing for a commemorative photo after signing the 2023 Win-Win Cooperation Agreement.

Seven Eleven announced on the 17th that it has signed the ‘2023 Franchise Win-Win Agreement’ with the Management Council to realize mutual growth and co-prosperity with franchisees, and has prepared a win-win plan focused on realizing coexistence and public value with management owners. This win-win agreement focuses on institutional support to create a stable store operation environment, such as strengthening the business stability of franchise stores, increasing store operation efficiency, and supporting sales revitalization.

Seven Eleven will further expand the waste support system for ready-to-eat meals, which have become a core product of convenience stores. Seven Eleven is expanding the waste support for the food ready-meal category from the existing maximum of 40% (basic 20% + conditional 20%) to 50% (basic 20% + conditional 30%). By expanding the support scope, Seven Eleven expects to encourage active operation of key products and spread a virtuous cycle structure leading to increased sales.

In addition, waste support of up to 40% is provided for food items such as lunch boxes and gimbap, and up to 1.2 million KRW annually is supported for room temperature and refrigerated categories. Also, as part of the store competitiveness enhancement program, promotional support (350,000 KRW per month) is provided for stores with poor sales.

Seven Eleven is also strengthening investments to enhance franchise business stability and improve operational convenience and efficiency. Seven Eleven is introducing an integrated control system capable of remote control of signboards and power usage control to increase store management convenience and help reduce energy costs. In addition, as a measure to support sales increase at late-night unmanned stores, cigarette and liquor vending machines with identity verification and authentication capabilities will be strategically introduced.

Seven Eleven is also strengthening its platform business to target the emerging core customer base, the MZ generation (Millennials + Generation Z). ‘Narasarang Pay,’ linked to the military welfare service platform ‘Narasarang Portal’ application, was introduced earlier this month, offering a 5% discount on military food products (over 110 items) and a 7% discount on Seven Eleven mobile gift card purchases. Along with this, differentiated services to attract young customers are being promoted, such as introducing meal ticket services through partnerships with meal ticket platforms and exclusive O4O services for university students. Digital transformation (DT) strategy investments will continue, and the next-generation POS system for efficient store management will be completed within the year.

Lee Jung-yoon, head of the Compliance Division at Seven Eleven, said, “We have prepared support plans focused on strengthening store competitiveness and improving productivity for mutual growth with franchisees,” adding, “We will devise and institutionalize practical support measures with high stability and efficiency so that management owners can focus on store operations with peace of mind.”