7-Eleven may have pioneered the convenience store concept in the U.S., but its lackluster reputation in the country is forcing a major transformation across its more than 12,000 stores there.
Nearly 70% of 7-Eleven parent company Seven & i’s total revenue comes from North America, and the U.S. makes up the majority of that. Even so, sluggish performance has made the Japan-based company rethink its stores in the U.S.
“The U.S. side remains a huge question mark,” said Lorraine Tan, director of equity research for Asia at Morningstar. “Revenue-wise, it’s a huge contributor. But profit-wise it’s not. “
In its full fiscal year 2024, Seven & i’s net income in North America dropped about 17%, and it closed 444 underperforming stores. Same-store sales and year-over-year traffic were both down in its first quarter 2025.
“They were just very focused on expansion”, said Neil Saunders, managing director at data analytics company Global Data’s retail and consumer division. “What doesn’t always happen is that you don’t evolve the store concept and format in a way that’s suited to changing consumer needs. And I think 7-Eleven fell into that trap.”
Seven & i changed up its leadership with a new CEO, Stephen Dacus, in March 2025. Dacus announced in August that the company needed to make urgent changes and that “long-term success can breed a certain complacency in the business.”
“This is our opportunity to redefine and reinvent ourselves,” said Dacus.
A major part of the plan is revamping the food business in North America. That includes adding healthier options for its ready-to-eat meals and introducing some fan favorites to the U.S. market, like the egg-salad sandwiches found in its Japanese locations.
The company is also adding more of its proprietary restaurants to existing locations, like its Laredo Taco Company — which it inherited from its acquisition of Stripes — and southern-inspired chicken chain Raise the Roost. It’s planning on opening 1,300 food-focused “new large format stores” by 2030.
The company noted the locations it has already revamped deliver 45% higher sales per store.
Restaurants can bring more traffic to 7-Eleven stores, but there are additional costs.
“I have mixed views on the restaurant side,” said Tan.
These updates come in preparation for a potential IPO of the 7-Eleven North America convenience store business in 2026. Seven & i is planning to spin off the business but stay on as a majority shareholder.
It is also dealing with the fallout of a failed $47 billion takeover attempt by rival, and No. 2 player, Alimentation Couche-Tard.
Watch this video to learn more.
