Is Speedway Becoming 7-11? [Expert Review!]

Rumors about the demise of 7-Eleven abound. The convenience store chain was once the king of the quick-service restaurant (QSR) world, but now it seems like everyone has a different opinion on what the future holds for 7-Eleven.

The Decline Of 7-Eleven

The last few years have been tough for the once-mighty 7-Eleven. Like many other QSRs, the chain has struggled with a changing customer base, a shift to online shopping, and more competition than ever before.

In response, 7-Eleven has tried to adapt to the changing market with new store formats and menu items. However, things haven’t worked out as the company hoped. 7-Eleven sales have slid almost every year since 2012, and in the last quarter of 2019, same-store sales declined by 5.7%.

To make matters worse, 7-Eleven’s stock price is lower than ever before, especially compared to its competitors. Shares of the company were recently valued at just $2.65 per share, which is far below what one would expect for a company of this size and market value.

The future of 7-Eleven seems pretty bleak at this point. It’s still trading above its IPO price from 2012, but things haven’t improved much for the company in the last five years. This year could be Skynet for 7-Eleven.

The Rise Of The Coffee Shoppe

On the opposite end of the spectrum, we have the Coffee Shoppe, which prides itself on being the “fastest-growing independent coffee shop in the country.”

The coffee shop chain actually started out as “Coffee-mate” back in 1985, but changed its name in 2015 to fit the modern era. Like 7-Eleven, Coffee Shoppe also experienced sales declines in 2019, with a 3.9% drop in same-store sales. However, unlike 7-Eleven, Coffee Shoppe seems to be more than holding its own in the market. In fact, compared to five years ago, same-store sales are up 14.6% in 2019.

In response to the changing market, Coffee Shoppe launched a new store format last year called a “Coffee Labs” in order to appeal to Generation Z. Coffee Labs are designed to feel like “smart coffee shops” with streamlined checkouts, ambient lighting, and built-in charging stations for phones. The shop also offers a full bar and a large outdoor seating area.

It’s clear that both of these coffee chains are trying to adapt to the changing landscape, but with different approaches. 7-Eleven is trying to become a more luxury brand within the convenience store world, while Coffee Shoppe is trying to focus on becoming a more upscale coffee shop.

The Future Of Convenience Stores

While it’s still early days, it looks like the future of convenience stores is becoming more clear. As the world turns to a service-oriented economy, people are seeking value, convenience, and speed above all else.

Take Jeeves Soda Shop, for example, which offers a range of classic soda fountain beverages as well as “modern creations,” such as fresh juices and gelatos blended on site. The ice cream maker at Jeeves is actually a walk-in freezer, which can churn out a variety of ice creams and gelatos literally in minutes.

The ice cream is actually free to customers in real life. Besides being able to try a range of flavors, customers can also take a peek at the ingredients and nutrition information before ordering. Much like other fast food chains, customers at Jeeves can place their order via text message, phone call, or online from any device.

Similarly, Sprout Market bakes delicious gluten-free whole-grain pastries and offers an assortment of vegan, vegetarian, and halal food options, all of which are available all day. Customers can also order online, via text message, or over the phone.

The convenience store market may be changing, but that doesn’t mean it’s time to write off the humble convenience store. Although the market may be shifting towards restaurants that serve fresh homemade food, there are still plenty of quick-service options out there that offer cheap, tasty, and accessible food. If anything, the convenience store market is becoming more important as time goes by. People are seeking value, convenience, and speed above all else, and companies like 7-Eleven and Coffee Shoppe are responding to that demand by creating unique stores that offer customers a new experience. It’s a market that is still going to be important in the coming years, even if it doesn’t feel like it now.

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