7 Eleven History: The Accidental Company

Summary

The video explores the accidental origins of 7-Eleven, starting as an ice shop that evolved into a convenience store. It highlights the innovative employee who initiated the store's expansion by selling milk, eggs, and bread. The name '7-Eleven' was adopted to reflect the store's operating hours, which later transitioned to 24/7 service. The video also covers the accidental creation of the popular Slurpee and the brand's global expansion, including its acquisition by a Japanese company and its transformation into a luxury brand in some Asian markets.

Takeaways

• 🏪 7-Eleven, with nearly 10,000 stores in the US and over 60,000 worldwide, is a globally recognized brand.
• 🚀 The inception of the 7-Eleven brand was accidental, not the brainchild of a founder or entrepreneur.
• 🛒 The company's growth was significantly influenced by the actions of a dedicated employee, Johnny Jefferson Green, who introduced milk, eggs, and bread to the stores.
• ⏰ The name '7-Eleven' was adopted in 1946 to reflect the stores' operating hours from 7 AM to 11 PM, a practice that has since evolved.
• 🌐 The brand expanded globally, with a significant shift in perception, being seen as a luxury brand in some Asian countries.
• 🏠 Initially, 7-Eleven was an American company, but it is now majority-owned by the Japanese retailer Seven & I Holdings Co., Ltd.
• 🔄 The company has undergone several transformations, including a period of bankruptcy and a hostile takeover attempt in the late 1980s.
• 🏢 7-Eleven has transitioned from a centralized business model to a franchising system, which has been key to its global expansion.
• 🥤 The Slurpee, one of 7-Eleven's most popular products, was an accidental invention by an ice cream shop owner and was later acquired by 7-Eleven.
• 🌟 The brand has become a cultural icon, with stores offering a wide range of products and services beyond the traditional convenience store offerings.

Q & A

How many convenience stores does 7-Eleven have in the US and worldwide?

7-Eleven has close to 10,000 convenience stores in the US and over 60,000 around the world.

What is the origin of the 7-Eleven brand name?

The 7-Eleven brand name originated from the operating hours of their convenience stores, which were initially open from 7:00 AM to 11:00 PM.

Who is credited with the idea of selling items like milk, eggs, and bread at the Southland Ice Company shops?

The idea of selling items like milk, eggs, and bread at Southland Ice Company shops is credited to an employee known as 'Uncle Johnny' Jefferson Greene.

How did the Southland Ice Company transition from selling ice to operating convenience stores?

The Southland Ice Company transitioned to operating convenience stores by noticing the success of selling milk, eggs, bread, and other items during times when grocery stores were closed, leading to the replication of this model in other ice shops.

What was the significance of the totem pole in the branding of the Southland Ice Company shops?

The totem pole became a significant marketing item after a Southland Ice Company associate brought one back from Alaska. It attracted customers, leading the company to adopt the name 'Totem Stores' and later use totem poles as a branding element.

Why did Southland Ice Company change its brand name to 7-Eleven in 1946?

Southland Ice Company changed its brand name to 7-Eleven in 1946 to reflect the new operating hours of their stores, which were from 7:00 AM to 11:00 PM.

When did 7-Eleven stores begin to operate 24/7, and what was the catalyst for this change?

7-Eleven stores began to operate 24/7 in 1963, with the catalyst being a visit from the University of Texas football team who stayed in the store until the next morning, leading to the decision to keep the store open round the clock.

How did the Slurpee soft drink become part of 7-Eleven's product offerings?

The Slurpee soft drink became part of 7-Eleven's offerings after Omar Knedley, the owner of a chain of ice cream shops, discovered the slushy drink by accident when his soda fountain broke down. His business was later acquired by 7-Eleven, and the drink was branded and marketed as Slurpee.

What is the business model of 7-Eleven in terms of store ownership and management?

7-Eleven's business model includes both company-owned and franchised stores. The company has expanded through building new locations and acquiring existing retail stores, and since the 1950s, it has adopted a franchising system where local businesses operate under the 7-Eleven brand.

How did 7-Eleven end up with majority ownership by a Japanese company?

7-Eleven ended up with majority ownership by a Japanese company, the Ito-Yokado Corporation, after facing financial difficulties in the late 1980s and early 1990s, which led to a hostile takeover attempt and subsequent bankruptcy. The Japanese company bought 70% of the shares during this period.

How has the perception and service of 7-Eleven stores changed in different countries, particularly in Asia?

In countries where 7-Eleven has expanded, especially in Asia, the brand is often perceived as more upscale, with stores located in affluent areas and offering services that include social settings and live entertainment, differing from the original Quickstop store concept.