Convenience Store Chain in Illinois Could Get a ‘Japanese-Style’ Makeover

A popular convenient store chain, one of the rare outlets that doesn't always sell gas, is mulling over the possibility of adopting Japanese sensibilities in order to compete in an increasingly competitive marketplace.

The New York Times recently published an article detailing the struggles of Seven & I Holdings, the parent company of 7-Eleven. It discussed the serious possibility that the company would overhaul many of its 7-Eleven retailers in the United States to look more like convenience stores in Japan, which are eminently popular "food meccas" that prioritize high-quality fresh food.

READ MORE: Kum & Go Stores are Starting to Disappear in Iowa

Why Japanese Convenience Stores are So Renowned:

Japanese convenience stores prioritize premium quality food at affordable prices. Unlike American convenience stores, which often have greasy pizza, heat-lamp-warmed chicken nuggets, and French fries of questionable freshness, Japanese convenience stores have seasonal bento boxes and egg salad sandwiches (a viral sensation made with pillowy milk bread and Japanese mayonnaise).

New CEO Stephen Dacus, who took the helm at Seven & I Holdings this summer, is hoping to bring the same sort of ethos to American 7-Elevens. No 7-Eleven stores exist in Iowa, but in Illinois, they're hugely common. Growing up in the Chicago suburbs, they were a go-to place for a Slurpee, and when I got older, a frosty cold beverage. Had I had the options Japanese consumers had when I was in college, it would've been a game-changer.

Why 7-Eleven Might Make Such a Radical Change:

The New York Times noted that Seven & I is currently experiencing a highly competitive retail market in Japan. There are more than 13,000 7-Eleven stores in the United States, and the challenge is integrating Japanese-level quality food in places where people expect American food at comparatively cheaper prices.

Seven & I could reportedly invest more than $13 billion in such a project. This would mean adding over 1,000 in-store restaurants to existing 7-Elevens, and building a network of companies to prepare and ship food to be sold exclusively at said stores.

And, yes, the aforementioned egg sandwiches would be one of the items.

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The Challenge 7-Eleven Faces:

Beyond the exorbitant costs to make such a sweeping change, Seven & I's move would mean a total brand pivot for 7-Eleven. I can't speak for everyone, but 7-Eleven stores where I grew up where always a little scuzzy, and not one of my first choices when it came to convenience stores (I preferred Speedway, personally).

Not to mention, consumers expect more from everything these days. As they should when the price of damn-near everything continues to climb. Fast food is no longer cheap. Groceries get higher and higher. Wages remain insufficiently comparable to the rise of inflation. People demand quality, and it seems every convenience store, gas station, and truck stop offers hot, ready-to-eat food, or cooked-to-order offerings.

Not to mention, convenience stores have seen slumping tobacco sales for decades. They can't rely on cigarettes to keep the lights on. For survival, they must make a sharp pivot to food.

What is the Key to This Plan's Success?:

Dacus stated that consumers harbor the idea that "fresh food" sold in convenience stores implies food that is frozen and cooked on site. There's a reason that assumption exists. Because it's mostly accurate.

The trick for 7-Eleven's move to a Japanese-style model to work in the States is to create the food supplier themselves. If they can control the supplier, they can control the quality as well as the shipments to their many stores. It's a tricky dance and one that will be fun to see play out.

You can access the New York Times article on 7-Eleven embracing a Japanese-style model on The Japanese Times' website.