For private brand products sold at SEVEN-ELEVEN (BEIJING), SEVEN-ELEVEN (TIANJIN), and SEVEN-ELEVEN (CHENGDU), strict criteria are applied in the selection of raw materials, and manufacturing plants are screened for items such as experience in exporting to Japan to select plants with high quality levels.

● Introduction of Quality Management System

Factories that manufacture only private brand products are strengthening quality control by adopting international systems for food safety management and measures taken at Japanese factories. SEVEN-ELEVEN (BEIJING) and SEVEN-ELEVEN (TIANJIN) manufacturing factories, Beijing Wang-Yang Foods and JEANAVICE Factories, obtained "SC" food production license for chilled food in January 2017, earlier than their peers. SC is a Chinese law regarding food production that must be obtained by October 2018, switching from the previous "QS" food quality and safety license.
In addition, Q's Café Factory and Beijing Want-Yang Foods obtained HACCP*¹ certification in March 2017 and March 2018, respectively. Beijing Want-Yang Foods began conducting ATP wipe inspections in November 2021, and is working to manufacture safer and more secure products. In October 2021, additional pillow wrapping machines were introduced, and burgers and rolls that were previously manufactured by hand are now being converted to pillow wrapping. Moreover, the JEANAVICE Factory acquired ISO 22000 (food safety management systems) in March 2022.

SEVEN-ELEVEN (CHENGDU) also asks its suppliers to comply with its own standards, which are stricter than domestic laws and regulations, and also holds regular quality control workshops for store employees to ensure safety and security.

● Automation of Production Processes

SEVEN-ELEVEN (BEIJING), SEVEN-ELEVEN (TIANJIN), and SEVEN-ELEVEN (CHENGDU) are automating their manufacturing processes to further stabilize the taste and quality of their products. Chengdu Yonglida Food Limited Company, which supplies products to SEVEN-ELEVEN (CHENGDU), expanded the installation of rice ball molding and packaging machines in July 2018 and adopted noodle-making machines in 2019. In 2020, the company is expanding its cooking facilities and continuing to implement the offering of completely new and unique products in addition to improving quality. Beijing Want-Yang Foods has mechanized its cooked bread manufacturing plant, which began full-scale operations in March 2019, focusing on the bread-making process and product packaging. SEVEN-ELEVEN (CHENGDU) is working on activities to help improve the temperature control level and safety of its products by enhancing its cooling facilities and in-place cooling system to ensure product safety, following the automation of processes at its manufacturing plant. At the same time, the production management department andSEVEN-ELEVEN (CHENGDU)  employees hold monthly study sessions to improve product quality and stability. SEVEN-ELEVEN (TIANJIN) has been selling salads using the cold chain since July 2019.

Trans-fatty acids, which are said to increase the risk of heart disease, were successfully reduced to zero in the original room-temperature bread products of SEVEN-ELEVEN (BEIJING), SEVEN-ELEVEN (TIANJIN), and SEVEN-ELEVEN (CHENGDU). In addition, since January 2019, allergens have been displayed for rice balls and sushi, and this is gradually being expanded to boxed lunches, sandwiches, and other daily food products.

SEVEN-ELEVEN (BEIJING) began displaying calories on the surface of packages for sandwiches and salads in the second half of FY2021, and also began releasing room temperature bread from the Zero Sugar series in April 2022. In the future, it plans to launch salads made with plant meat. Furthermore, SEVEN-ELEVEN (TIANJIN) launched lunchboxes such as cereal rice and salads rich in vegetables under the theme of health from the second half of FY2020.

SEVEN-ELEVEN (BEIJING) installed donation boxes in stores and has been collecting money from customers since November 2006. The funds are donated to the Beijing Green Fund, an officially-recognized environmental preservation organization. The Fund uses donations from the public to plant trees as countermeasures against sandstorm damage and desertification, creating tree fences that prevent sand movement in and around Beijing.
Starting FY2018, as an activity in which customers could easily get involved, it began an initiative in which part of the proceeds from customers' coffee purchases were donated to the Beijing Green Fund. In FY2022, 35,570 yuan was donated.

Since 2013, SEVEN-ELEVEN (CHENGDU) has continuously provided support for Benevolence House, a home for children with brain disorders. In FY2020, due to the impact of the spread of the new coronavirus infection, two employees volunteered to represent the company and visited Benevolence House to donate household items, etc. In FY2021, as the coronavirus disaster continued, a designated employee represented the company and visited Benevolence House to donate household items, etc. In FY2022, however, the visit to Benevolence House and donation of goods were postponed due to a large-scale mass infection of COVID-19 at the end of the year.

Operations Field Consultants (OFC) play an important role in connecting the Head Office with franchise store owners. They serve as store management consultants that provide multifaceted advice to franchise stores on overall management, including ordering, product lineups, and employee training. OFC candidates first gain store experience at training stores and learn the fundamentals of store management, which include the Four Basic Principles; unit control; employing, training, assigning and evaluating of staff; and management indicators. 

To shorten the OFC training period,SEVEN-ELEVEN (BEIJING) provides training and testing on relevant knowledge of OFC at the stage of training store managers. In addition to traditional knowledge acquisition, role-playing is also incorporated, with store managers acting as OFC and providing on-site guidance on management issues submitted by the franchise store owner. At the same time, store managers travel with experienced trainers to experience existing OFC operations. In order to improve the effectiveness and efficiency of OFC training,SEVEN-ELEVEN (BEIJING) has also introduced an online platform to our traditional training methods, using case studies, simulations, study sessions, on-the-job training, and other training methods to help store managers, our priority target for OFC training, learn OFC operations better. Case studies and simulations are also used in the OFC test content so that managers can apply what they learn on the job.

In FY2019, SEVEN-ELEVEN (TIANJIN) revised the AFC evaluation criteria and introduced a mechanism for quantitative evaluation. The existing qualitative evaluation was changed with clear standards for each evaluation item such as communication skill and evaluation is carried out using scores. Further, since March 2021, each department at the Head Office has been conducting intensive training every week. In order to enrich OFC’s job knowledge, acquisition of knowledge about architecture, finance, products, and operations related to store guidance is ensured. In particular, it educates on how to solve problems and how to respond to franchise store owners who are in special situations. In addition, since the second half of 2020, it has been furthering presentation of issues at store manager meetings. SEVEN-ELEVEN (TIANJIN) aims to improve the ability to analyze, solve, and verify aspects of a problem through presentations on the main theme of unit control. It is promoting education in advance to nurture reliable OFCs who can provide smooth explanations to franchise store owners. Since FY2022, periodic testing of OFCs has been conducted at OFC Conferences. By checking knowledge concerning products, priority products in each product category, solutions for increasing sales, delivery, creation of in-store systems, and other topics, it is possible to determine the overall level of OFCs as well as individual abilities, and the company plan to reinforce education and training based on the test results. In addition, the company has started measures for conducting rigorous training for in-store support systems for OFCs (from methods of use to tips) and to prepare for and implement action plans and verify them in order to enhance the planning abilities of OFCs.

SEVEN-ELEVEN (CHENGDU) started a new training program for store managers in FY2018 to teach skills such as analysis of business figures and computer operations necessary for work. In FY2019, training such as numerical analysis, employment development, and store management was conducted 12 times for 50 store managers. In FY2020, with the decrease in the number of directly managed stores, it shifted the focus of education to the selection of trainees and human resources, introduced the concept of “talent pool,” and focused on the development of talented employees with potential, with the aim of fostering highly skilled OFCs.

At weekly meetings of OFCs, company policies are shared and training is conducted to enhance work skills such as communicating effectively with franchise stores. SEVEN-ELEVEN (CHENGDU) conducts training of Head Office employees on corporate structures, laws and approaches regarding operations, business etiquette, PC operation, and other topics.

Various initiatives are implemented to raise employee motivation and resolve issues they may face in the workplace. For example, SEVEN-ELEVEN (TIANJIN) and SEVEN-ELEVEN (CHENGDU) have instituted internal hiring programs that allow employees to apply for desired positions.SEVEN-ELEVEN (BEIJING) is utilizing employee feedback to improve actual operations by encouraging the institutionalization of probationary and consideration period interviews for new employees, contract renewal interviews, and retirement interviews. In addition, it holds a retirement party to show appreciation for the many years of service to the company and to express the spirit of "valuing employees."

In FY2022, SEVEN-ELEVEN (TIANJIN) started implementation of an “express plan” that enables new store employees to be promoted to AFC within one year to support selection and development of outstanding OFC candidates. This program doesn’t simply reduce the promotion period, but ensures that employees can make a 200% effort by having trainers take the time to follow up with employees starting from the initial stage so that employees can acquire business knowledge as well as in-store practical knowledge and experience, providing a high level of motivation to employees who successfully complete the express plan. In FY2022, five employees applied and to passed, of which one is currently working as a store manager. In addition, six trainees also applied to the program, and the five who passed are currently assistant store managers.

SEVEN-ELEVEN (BEIJING), SEVEN-ELEVEN (TIANJIN), and SEVENELEVEN (CHENGDU) have adopted an employee evaluation system that combines monthly interview evaluations and yearly evaluations. Monthly interviews are conducted between employees and their direct supervisors to discuss the rate of progress toward their performance goals. In addition, once each year, after self-assessments are carried out by each employee, interviews and evaluations are then conducted by the direct supervisor and a secondary, higher-level supervisor. Monthly evaluations are based on company, divisional, and individual performance. For managers who conduct evaluation, education is carried out so that they can evaluate subordinates properly and develop human resources.

In order to improve the evaluation system, SEVEN-ELEVEN (BEIJING) worked with external specialists to review the skill items necessary for each job. Moreover, the frequency of interviews was changed from once a year to quarterly, and progress is being periodically checked so that annual performance goals can be achieved. In FY2020, it implemented only annual evaluations and interviews due to the influence of COVID-19. It is conducting interviews focusing on key positions to gain an understanding of the problems faced by our employees, and implementing coordination of operations to meet the demands of the post-corona period. In addition, in FY2021, it conducted annual performance evaluations and interviews, took a questionnaire on career planning in line with the expansion into new areas in Hebei Province, and developed a preliminary plan for new areas in accordance with business needs and individual motivation.

SEVEN-ELEVEN (TIANJIN) reviewed the self-check system and evaluation items at headquarters and stores, and made improvements to ensure fair and equal evaluation standards. For example, in the evaluation of directly managed store managers, it has created a system that combines monthly rankings of management figures and basic evaluations to serve as criteria for promotion and demotion.

SEVEN-ELEVEN (CHENGDU) changed its company structure and evaluation system in FY2019. Starting from FY2020, managers are evaluated and interviewed every quarter, while non-managers are evaluated monthly. Also, the Employee Rules were revised in 2021 to clarify individual career paths and increase the granularity of the personnel evaluation system. In FY2022, KPI and GS (conduct) were added to the individual performance indicators based on the existing performance evaluation system. An annual bonus evaluation system centered on performance was also created by linking company performance with individual performance.

In China, the labor contract laws have been designed to provide male and female employees with generous leave related to childbirth and childcare. Moreover, men and women are treated equally, and it is common for women to continue working after marriage. This legal system and practice of appointing managers based on ability work together to promote the appointment of women to managerial positions. In 2012, the first Chinese woman director was appointed at SEVEN-ELEVEN (TIANJIN). As of December 31, 2021, women currently occupy approximately half of the nonexecutive managerial positions at SEVEN-ELEVEN (BEIJING), SEVEN-ELEVEN (TIANJIN) and SEVENELEVEN (CHENGDU). In March 2018, SEVEN-ELEVEN (BEIJING) appointed women in the roles of vice president and director, and SEVEN-ELEVEN (TIANJIN) appointed a woman as director.

With the aim of hiring outstanding human resources, hiring local personnel, and promoting the education of youth, SEVEN-ELEVEN (TIANJIN) and SEVEN-ELEVEN (CHENGDU) conduct internships and have been recognized by the government as Youth Employment Intern Bases that promote the employment of young people who have graduated from high school. SEVEN-ELEVEN (TIANJIN) accepted 39 interns in FY2021, 4 of whom were employed by SEVEN-ELEVEN (TIANJIN). SEVEN-ELEVEN (CHENGDU) accepted 10 interns in FY2021, 1 of whom was employed by SEVEN-ELEVEN (CHENGDU) in July 2022.

SEVEN-ELEVEN (BEIJING), SEVEN-ELEVEN (TIANJIN), and SEVENELEVEN (CHENGDU) have installed LED illumination as interior lighting in all stores and are implementing other measures to reduce electricity consumption, such as installing curtains in walk-in refrigerators to prevent the outflow of cold air, and conducting education to raise employees’ awareness. In addition, all the three companies have changed their fast food warming cases and introduced fast food refrigerated cases to save energy while eliminating opportunity loss and reducing waste loss. SEVEN-ELEVEN (BEIJING) has completed the installation of fast food  refrigerated cases in a total of 66 stores by the end of 2021, leading to energy savings of 1,485 kW per day. SEVEN-ELEVEN (CHENGDU) installed fast food refrigerated cases in 85 stores in FY2022, achieving energy savings of approximately 320 kW per day, and starting in the second half of FY2022, it has saved approximately 80 kW of energy per day by turning off one-third of lighting for about seven hours in the evening.

SEVEN-ELEVEN (BEIJING), SEVEN-ELEVEN (TIANJIN), and SEVEN-ELEVEN (CHENGDU) re-announced the 7 power-saving articles and 9 power-saving articles signs to all stores in FY2021 and posted them in store backrooms to raise employee awareness of power saving and ensure strict implementation. In addition, they are thoroughly turning off lights and air conditioners when they are not needed.

Through meetings and product exhibitions for OFCs, SEVEN-ELEVEN (BEIJING) shares information about being thorough in saving energy with OFCs and franchise store owners.

In order to avoid wasting resources, efforts are being made at Beijing Wang-Yang Foods, a food manufacturing factory of SEVEN-ELEVEN (BEIJING) and SEVEN-ELEVEN (TIANJIN), to utilize food loss generated by each factory as feedstock for a pig farm. Similarly, the JEANAVICE Factory has a contract with a fish farm to collect residual bread. Both factories use wastewater treatment facilities that clean water to the same or higher standard than government standards to ensure that polluted water is not discharged, collect waste oil, and conduct periodic investigations of smoke emissions from the perspective of preventing atmospheric pollution.
Furthermore, to save energy, JEANAVICE Factory works to reduce thermal loss from boilers and reduce the consumption of gas.