We need a contract that makes this model workable and profitable for franchisees," Los Angeles-area franchise owner Jas Dhillon said. The structure of the agreement is flawed. "7-Eleven wants to be a place that customers think of for fresh food, but our Franchise Agreement is based on a convenience store model, not a quick-service restaurant model. One possible remedy for franchisees is to raise retail prices, but that creates a competitive disadvantage in the marketplace, which can adversely affect sales and profits."įranchisees are also pushing for changes to the franchise agreement that better fit the store's current emphasis on prepared meals as opposed to its convenience store roots. As labor and other direct store operating expenses keep increasing, franchisees are earning less and working more. "The 7-Eleven Franchise Agreement allows the corporation to keep more than 50 percent of the gross profits of each sale. "We are already feeling the squeeze," NCASEF Executive Vice Chairman Michael Jorgensen wrote. If franchisees are unable to find staff for these shifts, they have to cover them themselves, which can be stressful and even bad for their health, they say in the letter. Now, with a return to pre-pandemic hours planned for May, the franchisees say finding staff for overnight shifts is "extremely challenging," and overnight sales do not necessarily cover the costs of labor. Read more: Restaurant workers should keep collecting unemployment instead of going back to work for poverty wages Some chains are turning to large-scale hiring events to screen swaths of candidates at once, with perks like cash just for showing up and drive-thru interviews at some stores. Nearly half of all US restaurants say they are "severely understaffed," and even getting applicants in the door has been a struggle in some cases. The service industry is facing historic difficulty staffing stores. An estimated 50,000 employees were hired by Franchisees or 7-Eleven since March 2020, a spokesperson told Insider. "7‑Eleven stores are essential in communities across the nation and we will continue to keep our doors open, just not 24/7 at all locations," 7-Eleven president and CEO Joe DePinto wrote at the time. While 7-Eleven stores are typically open 24 hours a day, the company in March 2020 recommended nightly closures from midnight to 5 a.m. Account icon An icon in the shape of a person's head and shoulders.
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