Think Globally, Act Locally With Speed and Ambition | Interview with President and CEO Ken Wakabayashi, 7-Eleven International LLC

Founded in 2021 through a joint investment by SEVEN-ELEVEN JAPAN CO., LTD. in Japan and 7-Eleven, Inc. in the United States, 7-Eleven International LLC manages operations worldwide, excluding the United States, Mexico, Canada, and Japan. The company is headquartered in Texas and operates from two primary bases: the Texas team oversees new market development and corporate functions, while the Tokyo team is responsible for supporting Licensees.

Wakabayashi explains, "Our mission is to leverage the strengths of Seven-Eleven Japan in product development and store operations, alongside the strengths of 7-Eleven, Inc. in marketing and digital technology. This approach will enhance performance in existing markets, and facilitate rapid expansion into new countries."

In terms of the expansion into new markets, Wakabayashi says, "7-Eleven has established a presence in many regions around the world, but there are still numerous markets where we have yet to expand. We believe there remains significant room for growth." Unlike in the past, however, the strategy for new markets is no longer the traditional low-risk, low-return licensing model. Instead, the company has adopted an investment model that targets higher returns while carefully evaluating and managing risks.

To achieve its mission, 7-Eleven International has formed a talented team and implemented "Leadership Principles" as the core values of the company.

"Every great business starts with people, and we strongly value our human resources," says Wakabayashi. "Our current personnel structure consists of about 30 employees each from Seven-Eleven Japan and 7-Eleven, Inc., along with 20 employees from outside the group. We are committed to further developing each individual while actively recruiting new talent. While the skills required vary by department, the importance of leadership is consistently emphasized across the company."

Wakabayashi outlines eight Leadership Principles that are fundamental to 7-Eleven International's corporate culture:

7-Eleven International collaborates closely with its local Licensees—companies that operate 7-Eleven stores under a licensing agreement. According to Wakabayashi, the establishment of 7-Eleven International has significantly narrowed the gap between 7-Eleven's leadership and its Licensees, streamlining processes such as decision-making and the execution of plans in local markets with greater speed and flexibility.

"Before the launch of 7-Eleven International, global expansion was managed by a single department, the Overseas Department. Since then, the quality and quantity of support we provide to our Licensees have greatly improved."

While 7-Eleven International's involvement continues to grow, no one understands the local food, culture, and lifestyle better than the local Licensees. Wakabayashi emphasizes the importance of respecting these Licensees and maintaining a clear division of roles.

"What I always remind the Licensees is that they are the ones driving the car. We sit in the passenger seat or the back seat, providing them with necessary information and support. The Licensees are the ones making decisions and taking ownership. This division of roles is clearly defined."

7-Eleven International studies each cultural region, conducts market research, and evaluates what is needed in each area. Licensees engage in thorough discussions of the data and make decisions based on the culture and lifestyle of their respective countries. Both 7-Eleven International's objective perspective and the Licensees' subjective viewpoint are essential to provide products and services that are well-suited for the local markets.

The synergy between different markets is crucial as well. 7-Eleven International LLC also serves as a "bridge" connecting Licensees worldwide. Beyond sharing information between Japan and the United States, the company works to enhance collaboration among countries worldwide by applying successful strategies from one market to others through their "Community of Practice" initiative.

"For example, in Thailand, there are 15,000 7-Eleven stores, with food delivery services averaging over 50 orders per day, which accounts for 11% of total sales," Wakabayashi explains. "We plan to share insights gained from this Thailand's delivery services with other countries."

7-Eleven International also facilitates the Community of Practice initiative, where representatives from different countries gather regularly to share common interests and learn from each other.

"For instance, we are taking inspiration from the three Nordic countries - Denmark, Norway, and Sweden - on the topics of ESG (Environmental, Social, and Governance) practices and sustainability. For ESG discussions, representatives from multiple licensed countries meet online approximately once every quarter to share the successful practices and initiatives from their respective countries. Sustainability representatives from Seven-Eleven Japan, 7-Eleven, Inc., and Seven & i Holdings also participate in these sessions to exchange information."

Additionally, the company hosts an annual event called the "Licensee CEO Summit," where the CEOs of different countries gather to discuss management issues and growth strategies. This year, the CEO Summit was held in Tokyo, where more in-depth discussions took place," Wakabayashi said.

Regarding the company's goals, Wakabayashi expresses his determination with respect and humility.

"The market we serve includes the highest number of countries, stores, and consumers, representing the largest economy. Through bold investments and disciplined strategies that combined renovating existing stores, opening new ones, 7-Eleven, Inc. increased its net income by approximately 23 times over the past 20 years since 2004. By adopting a similar approach —supporting existing Licensees with investments and accelerating our expansion into new markets —we aim to achieve more than a 20-fold increase in net income in a relatively short time frame."

Wakabayashi emphasizes, "To succeed, it is essential to act with both speed and sense of urgency while maintaining the highest quality in our services and products. I am confident that we can achieve this goal and establish 7-Eleven as one of the top brands in the world."