7-Eleven is rolling out a new plan to refresh its U.S. stores, taking inspiration from the chain’s success in Japan.
Stephen Dacus, the new chief executive of parent company Seven & I Holdings, told the New York Times that the chain plans to improve the quality of its fresh food offerings — and introduce the iconic egg salad sandwiches that have gained popularity among American visitors to Japan.
Newsweek has contacted 7-Eleven for comment on Thursday, outside of regular working hours.
Why It Matters
7-Eleven’s overhaul comes as the company faces a stagnating market in its home country of Japan, where its stores are under pressure in a highly competitive retail landscape.
Under Dacus’ leadership, Seven & I Holdings plans to introduce Japanese-level quality foods to U.S. outlets in the hopes of expanding its business in the country.
The new push also comes after its rejection of a $47.2 billion takeover attempt last year, which led to its stock price collapsing.
What To Know
A former member of Seven & I Holdings board of directors, Dacus took on the leadership role just three months ago, tasked with replicating some of the success that 7-Eleven stores have had in Japan.
This strategy will place an emphasis on selling high-quality fresh food, a hallmark of 7-Eleven’s success in Japan.
“Whether it’s hot food or cold food or any kind of food, we have to lean into how we improve the quality and the experience,” Dacus told the New York Times. “That’s what Japan does extraordinarily well.”
The company is considering spending more than $13 billion over the next five years to expand its overseas operations.
This would involve initiatives like upgrading existing U.S. stores, adding more than 1,000 in-store restaurants and strengthening supplier partnerships to boost its prepared food offerings.
This plan includes introducing the Japanese egg sandwiches, which are made with “milk bread” and Japanese mayonnaise, to its U.S. stores.
Dacus said that these ingredients give the sandwiches “the heavenly pillow thing.”
To bring this popular product to the U.S., a team in Texas is working with Japanese suppliers to learn how to produce it.
7-Eleven’s flagship egg sandwiches and strawberries and cream sandwiches have exploded in popularity in recent years, with countless videos on TikTok showing tourists visiting its Japanese stores to sample them.
Dacus said that in the past the company took “a low-risk, low-return approach,” which involved little focus on operations outside of Japan, but that he now hoped to changed this.
What People Are Saying
Stephen Dacus, the chief executive of parent company Seven & I Holdings, told the New York Times about the company’s past strategy: “We could have been much more aggressive. There’s that much opportunity out there for us as we shift our focus.”
What Happens Next
7-Eleven will roll out its new strategy across the U.S., with the hope that its revamp can deliver growth.
Dacus hopes that success will result in concrete profits, as he wants to quell investor concern and “show them the money.”
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