FOR global convenience-store chain 7-Eleven, a significant foundation in growing the franchise business system—from tapping to continuously expanding in new markets—is making solid alliances with mutually passionate partners.
This growth strategy holds true for 7-Eleven’s groundbreaking franchise venture in the Visayas, as it holds dominant leadership in the area with more C-stores operating in Cebu, Bacolod and Iloilo.
Behind the brand’s flourishing business success in the South is Cynthia Alino, one of Philippine Seven Corp.’s (PSC) pioneering C-store franchisees and owner of 7-Eleven Caltex Mango at General Maxilom Avenue.
Strategic collaboration
Partnering with an undisputed convenience-store leader has its perks, as well as challenges. When she decided to pursue her own C-store business, Alino, a Business Management degree holder, said being hands on in managing one’s business and knowing the entire cycle of operations—from establishing internal controls to effective fund management—are the key points that are foremost learned in running a business. All these, she stressed, ultimately lead to developing one’s potentials.
“The franchise for a 7-Eleven store came as a package with our existing gasoline station. It was a welcome offer to be among the pioneers in the Visayas to carry such a widely accepted and popular brand in the convenience-store business,” Alino shared.
She also described her initial interaction with PSC as “family.”
“The welcome from top management down the line of staff and employees was genuine and so comfortable one would feel the intensity of commitment and dedication to the business just like a family wherein the parents are in an all-out care and support to a newborn baby,” Alino noted.
7-Eleven’s franchise package offers suitable franchise partners a unique opportunity to benefit from a proven system and ongoing support. Apart from one-month preparatory training, partners are lent assistance, especially at the crucial stages of operational transition.
With this nurturing support and exchange of strategic insights, not to mention a proven franchise system all in place, Alino said she was fully motivated to take the business to its elevated potential.
“Being one of the pioneers of 7-Eleven in Cebu, the first days of operations were really so overwhelming, exciting and challenging. But being an entrepreneur also came as a blessing for me and my husband, having had no experience as we were both from the corporate world. Our confidence level is challenged, but eventually achieved. Inspiration came from each other with the loving support of our children,” Alino said.
As one of the first franchisees to bring 7-Eleven in the Visayas, she recalled that locals especially welcomed the arrival of the C-store giant’s unique offerings.
“The 7-Eleven Caltex Mango opened its doors to the very excited and eager Cebuanos on July 31, 2012. We were among the first three stores simultaneously opened on that date. Customers, like students, drove in 30 [pax] to 50 pax, rushing from the corner of the store every lunch break and dismissal to sample the food stuff, especially the proprietary products Slurpee and Fundae ice cream,” Alino said.
But what makes the franchise ideal despite challenges, Alino noted, is that the business is handed down smoothly as free flowing in terms of setup/logistics, from trainings to actual operation, support and assistance in all aspects of the business.
“The PSC has a very unique franchise organization with shared investment on profit margins, operation costs like power and manageable goods/product supply from their centralized distribution center, up-to-date technology and systems, and guidance from management through open lines of communication offered by knowledgeable company staff,” she said.
Alino, who is also currently Franchise Advisory Council representative for Cebu, is also actively cascading to fellow franchisees PSC’s commitment to service, product innovation and management policies
“Fellow Cebu franchisees see to it that the whole operation is personally managed through regular coaching, meetings and training of service crew, presence in the selling area, monitoring customer needs and wants as much as possible getting to know regular customers by taking time to chat with them,” she added.
Customization of convenience
To develop an even more competitive C-store business for franchisees like Alino, 7-Eleven, through its exclusive licensor PSC, has partnered with Caltex via Chevron Philippines Inc. (CPI).
Since 2009, PSC was granted recognition by CPI as the only recognized co-locator of convenience store for the establishment, operation and franchising of 7-Eleven store within the premises of CPI’s service station.
This strategic co-branding efforts between two global brands resulted in a broadened, more profitable franchise retail format. It also paved the way for diversified offerings, specifically more proprietary food products and value-added services for both 7-Eleven and Caltex customers.
Early in February 2014, PSC revealed its investment infusion of P2 billion for its planned expansion. Also this year, PSC has opened 170 branches, 32 of which are currently in the Visayas. To date, there are 65 stores in Cebu, 15 branches in Bacolod and six in Iloilo.
Fulfillment as a franchisee
Now on her second year as franchise owner, Alino proudly revealed her fulfillment in her business. “I am gradually seeing the fruits of my labor. I can say that besides reaping investment returns, my fulfillment as manager and owner comes in the form of being able to smoothly operate the business, achieving target profit margins with full support by a team of dedicated staff and employees,”
“I’m very much secured, and also contemplating on expanding through additional stores in the future. Our business partner in PSC is such a model in the way they set up the franchise organization with their ultimate goal of constantly motivating us the franchise operators in terms of return on investment, support and guidance and most especially growth,” Alino concluded.