Some 7-Elevens No Longer Want 24/7 Hours

A group of 7-Eleven franchisees has said that it is not possible for them to stay open 24/7 as they are being crippled by labor shortages, higher operating costs, and lower profit margins.

The call to reduce the operating hours for the 7-Eleven franchise comes from the National Coalition of Associations of 7-Eleven Franchisees (NCASEF), who penned an open letter to parent company SEI.

NCASEF, which represents about 7,200 7-Eleven franchisees in the U.S., claims that SEI is continuing to ignore the franchisees’ “pleas for help.”

According to NCASEF, the 7-Eleven franchisees were mandated by SEI to resume 24-hour operations, seven days a week, starting on May 24, but the franchisees are asking the company to reverse the decision for those stores that cannot safely operate under these conditions and allow them to close overnight.

“We all remember that when the pandemic struck, SEI listened when we asked for permission to close overnight. We ask them to do the same now,” NCASEF said in the letter.

7-Eleven, like many companies, is facing a tight labor market, where job positions are increasingly hard to fill.

Fast-food restaurants, in particular, are finding it hard to fill jobs as they experience a significant sales boom. Many chains have been forced to keep their dining rooms closed as a result of the labor shortage despite the easing of coronavirus restrictions that allow them to reopen their indoor dining areas.

In one instance, a McDonald’s in Tampa, Florida, was offering anyone that interviewed for a job with the burger chain $50 as the restaurant was so hard-pressed for job applicants. Other companies have resorted to other hiring incentives to attract job candidates to their location, while others have had to cut back their operating hours due to staff shortages.

“We are already feeling the squeeze. Every additional dollar a franchisee pays his or her employees comes off net profit,” NCASEF Executive Vice Chairman Michael Jorgensen said in the letter to SEI.

“The 7-Eleven Franchise Agreement allows the corporation to keep more than 50% of the gross profits of each sale. As labor and other direct store operating expenses keep increasing, franchisees are earning less and working more.”

In response, 7-Eleven told Business Insider that it continues to support its franchisees, saying that since March 2020, as many as 50,000 workers have been hired by franchisees or 7-Eleven corporate.

It continued by saying, “7-Eleven remains focused on supporting and promoting Franchisee profitability, safety, and success. Since the start of the pandemic last year, 7-Eleven has provided Franchisees with more than $173.5 million in investment, savings, and support as they own and operate essential businesses on the front lines of their communities.”

In March, 7-Eleven recommended that franchisees close stores from midnight to 5 a.m. for cleaning as essential businesses in the U.S.

NCASEF concluded its letter by saying that SEI “surely knows that many franchisees are struggling with the labor to safely operate 24 hours. They need to acknowledge that and be amenable to limited hours of operation.”