7-Eleven, often seen as a pioneer of the convenience store concept in the United States, is facing a downturn in its American business that is prompting a major transformation of its over 12,000 stores in the country. This includes introducing some popular foods from its stores in Japan.
The parent company of 7-Eleven, Seven & i, generates nearly 70% of its total revenue from North America, with the U.S. market representing a significant portion of that. Despite this, the sluggish performance has forced the Japanese-headquartered company to reconsider the future of its American stores.
According to CNBC, Lorraine Tan, Director of Stock Research at Morningstar Asia, said, “The U.S. market remains a big question mark. While it is a huge contributor from a revenue perspective, it is not as much from a profit standpoint.”
In the 2024 fiscal year, Seven & i saw a decrease of about 17% in net income in North America and closed 444 underperforming stores. In the first quarter of 2025, both same-store sales and year-over-year foot traffic showed a decline.
Neil Saunders, Managing Director of Retail and Consumer Goods at data analysis company Global Data, commented, “They were just too focused on expansion. If they cannot adapt store concepts and models in line with evolving consumer demands, they won’t always achieve their desired results, and I think 7-Eleven has fallen into this trap.”
In March 2025, Seven & i made changes to its leadership, appointing a new CEO, Stephen Dacus. In August, Dacus announced that the company needed to make urgent changes, stating, “Long-term success has bred a certain amount of complacency within the business.”
Dacus said, “This is our opportunity to redefine and reshape ourselves.”
A major part of this plan is restructuring the food business in North America. This includes adding healthier options to its ready-made food offerings and introducing some popular products loved by consumers, such as the egg salad sandwich that sells well in Japanese stores.
The company is also adding more self-owned restaurants within existing stores. For example, the Laredo Taco Company inherited from the acquisition of Stripes and the Southern-style chicken chain, Raise the Roost. The company plans to open 1,300 food-focused “new large-format stores” by 2030.
The company noted that the revamped stores saw a 45% increase in sales per store.
While restaurants can bring in more foot traffic to 7-Eleven stores, they also come with additional costs.
Lorraine Tan commented, “My view on the restaurant business is mixed.”
These adjustments are preparations for the potential listing of 7-Eleven’s North American convenience store business in 2026. Seven & i plans to spin off the business but will still retain the majority of shareholders.