Philippine Seven Corporation (PSC), which owns and operates all 7-Eleven brands in the Philippines, has announced it will launch a new pilot programme where new franchisees will pay less than one million pesos to operate a store.
A full-blown franchise costs 3.5 million for a regular franchise agreement with 7-Eleven, but PSC’s President Jose Victor Paterno said they are about to launch a new scheme to attract more investors.
Paterno noted that the new programme is aimed at those who work hard but do not have the capital to start their own business.
“In the Philippines, the people with money don’t want to work; the people who are willing to work, they don’t always have the money. We have the money. We want the people who are willing to work. We’ll attract people who are really passionate about operating stores and who are willing to be there everyday. We’ll invest in everything else,” he told the Philippine Daily Inquirer. “When we lower the investment, we want more applicants and we want to choose the best.”
Paterno also mentioned that the risk and rewards ratio of owning a 7-Eleven franchise “won’t lose money, but won’t make [as much].” The company has said it hopes the programme will help it achieve its goal of having 2,000 stores operating within the Philippines.
“We believe that this sector will remain crowded and competition more intense, but we shall capitalise on our first-mover advantage and economies of scale, to maintain our dominant position in the market,” the company noted.
As of 2016, just over 1,760 7-Eleven stores are operating throughout the Philippines – of those, 57% are operated by franchisees.