Expert Take on 7-Eleven’s Food-Forward Pivot

7-Eleven is undergoing a strategic shift by expanding its fresh-prepared food offerings and modernizing its stores. This pivot aims to counter declining sales in traditional categories like fuel and tobacco by focusing on higher-margin food items and mimicking its food-forward experiential strategy in Japan. This also aligns with a consumer trend, as a recent report indicated roughly 23 percent of shoppers purchase fresh prepared items from convenience stores.

Modern Restaurant Management (MRM) magazine reached out to Craig Miller, expert legacy business strategist and former Sonic Drive-In CIO,  for a deeper dive into the strategy, which he says is a necessity.

“The distinction between convenience, fast food, and grocery is fading," said said Miller. "C-stores aim to capture share of food spending traditionally held by restaurants and delis. As traditional drivers such as  tobacco and fuel face pressure or declining margins, convenience chains see fresh prepared food as a growth and differentiation lever. 7-Eleven has shown resilience in a challenging retail environment, the company is facing headwinds from declining foot traffic, inflation pressures, shifts in consumer behavior, competitive landscape,but is actively adjusting.”

Among the ways the brand is adjusting is by steering toward higher-margin categories including food, fresh, and proprietary products, closing underperforming stores, selective growth and resharping its corporate structure to focus management and capital on the convenience business.

“It’s a smart long-term move,” Miller said. “ It aligns with where consumer demand and margins are going, helps future-proof the business against declining product trends, and plays into 7-Eleven’s global DNA. Expanding into fresh prepared food is strategically smart for 7-Eleven — but only if they can execute with the same rigor as brands like Wawa, Sheetz, Casey’s, or Kwik Trip. Right now, it’s more of an aspirational pivot than a proven revenue driver in the U.S. context.”

Consumers want convenience and quality and they’re increasingly comfortable buying meals from non-traditional outlets such as grocery, deli, c-stores,  and even drugstores, Miller pointed out.  Younger demographics (Gen Z, Millennials) are more open to “hybrid” channels for food if the quality is consistent.

"Right now, many consumers see 7-Eleven as a 'last-resort' stop (snacks, drinks, Slurpees). Fresh food could reposition the brand as a destination — boosting frequency and loyalty."

The success of 7-Eleven’s gamble hinges on one main factor: execution, Miller stressed. 

Foodservice is the right hill to climb — but the climb is steeper than for competitors.

“Without commissary scale, franchise buy-in, and consumer rebranding, it risks being a half-step that drains capital without shifting perception. Foodservice is the right hill to climb — but the climb is steeper than for competitors.”

Franchisee buy-in, capital need, operational hurdles, labor struggles supply chain and food quality will be among the challenges to execution.   

“Shifting many stores to fresh / prepared food means more complexity in operations with food safety, staffing, kitchen equipment. Some franchisees may resist or struggle with new standards Scaling fresh food means dealing with perishability, food safety, shrink, equipment, staffing, recipes, supply chain, and forecasting. Maintaining high freshness and consistency at scale is hard and to supply fresh food, the network of commissaries, transportation, cold chain, and demand forecasting become critical.”

Consumer acceptance and perception might be a struggle, as well. 

“U.S. consumers may compare these offerings to fast food or premium deli/meal providers, so execution will matter,” Miller said. “Not every convenience brand has earned ‘permission’ to sell fresh food. Many customers still see 7-Eleven primarily as a place for snacks, cigarettes, or Slurpees. Customers will be intrigued and receptive if 7-Eleven executes on freshness and quality. The brand’s challenge isn’t demand creation — it’s trust, consistency, and perception shift. If they nail those, the strategy could reposition them as not just a convenience store, but a daily food destination. Younger, health-minded consumers may re-evaluate 7-Eleven from 'junk food and lottery tickets' to 'accessible, fresh, and affordable.'"

According to Miller, other legacy brands watching 7-Eleven's food-focused expansion should prioritize understanding the "how" over the "what."

“Other brands don’t need to copy 7-Eleven’s menu — they need to copy the method: leverage customer data, retrofit existing assets, and add new value in a way that amplifies (not replaces) what makes them authentic. 7-Eleven didn’t abandon its identity as a convenience retailer; it layered fresh food onto its existing footprint. That’s a reminder that brands don’t need to 'burn the house down” to modernize' — they can retrofit existing formats. By adding healthier, fresher options, 7-Eleven appeals to younger and health-conscious demographics while still serving its core base (grab-and-go snacks, beverages, late-night runs). That balance is key for authenticity."