7-Eleven Franchise for Less Than 1 Million Pesos! Would You Open a Store Now?

7-Eleven Franchise for Less Than 1 Million Pesos! Would You Open a Store Now?

7-eleven cover

7-Eleven Franchise for less than a Million? That’s already possible now with the plans of PHILIPPINE Seven Corp. (PSC) to get more franchisees in the country, particularly in Mindanao.

Have you noticed the 7-Eleven stores that mushroomed in Cagayan de Oro City from last year? That is because the 7-Eleven chain has opened 65 stores in Mindanao in the second half of 2015 to boost its presence nationwide.

On Thursday, President and Chief Executive Officer Victor C. Paterno said, “We plan to end the year with a hundred, and I think a hundred stores in the next year and a half. I think Mindanao can probably take about 250 stores and then as incomes grow, it can take more and more, just like Metro Manila.”

There are currently 1,760 7-Eleven stores in the Philippines and with their expansion to Mindanao, the number could go dramatically huge!

“Each of the islands requires a warehouse and once you open a warehouse, you are forced to open a lot of stores. It’s a big bet and I think the bet now is paying off and we welcome the initiative of the new administration to grow the regions outside Metro Manila especially since we have stores there,” said Paterno.

“We want to increase the number of franchisees. Well, we are determined to grow the stores regardless if we find franchisees or not, ” he added.

PSC’s strategy to increase its already successful expansion is to execute the plan of requiring an investment lower than the usual P3.5 million. Paterno is finalizing the process of completing the franchise plan of “under P1 million.”

He said, “The idea is to be able to widen the pool of applicants. In the Philippines, the people with money don’t really want to work, the people willing to work don’t always have the money, so we have the money… We can attract people who are really willing to operate a store.”

PSC recorded a P472.3 million earnings in the first six months of this year. It is a 32% increase compared to the P356.5 million earnings of the same time frame last year.

“We are 32% up versus last year, so if the trend continues we can reach P1.3 billion, probably less,” Paterno said.

Shares in PSC closed P3 or 2.11% lower at P139 apiece on the Philippine Stock Exchange on Thursday.

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