7-Eleven Franchisees Weigh In on Potential Canadian Takeover

Former 7-Eleven franchise owner Jun Nagao and other franchisees express their dissatisfaction with Seven & i Holdings' strategy, suggesting a $38.5 billion bid from Canada's Alimentation Couche-Tard could bring beneficial changes. Despite the resistance from Seven & i, many franchisees believe a takeover could be a needed wake-up call for the company.

Former 7-Eleven franchise owner Jun Nagao, who spent decades with the retail giant, believes a foreign takeover could beneficially shake up the company. Last month, Canada's Alimentation Couche-Tard made a $38.5 billion bid for Seven & i Holdings, the parent company of 7-Eleven. Nagao and many other franchisees support this move, citing strategic missteps by Seven & i.

Nine current franchisees interviewed by Reuters echoed Nagao's disapproval of Seven & i's strategy, welcoming the proposed acquisition. Although Seven & i rejected the bid, Couche-Tard has shown continued interest. The potential deal, which would be the largest foreign acquisition of a Japanese company, could significantly enhance the Canadian retailer's economies of scale.

The franchisees' grievances include the failure of the 7pay cashless payment system and rising operational costs. Many find Seven & i lagging behind its competitors and believe that new management could create better value. Despite some franchise owners contesting the foreign buyout, an internal survey shows that around 80% of franchisees are generally satisfied with the current management. However, Seven & i continues to strive for sustainable growth and closer collaboration with franchisees.

(With inputs from agencies.)