Chinese Convenience Store Business
Providing Safe and Reliable Products
In China, where concerns over food safety and integrity have been mounting, SEVEN-ELEVEN (BEIJING), SEVEN-ELEVEN (TIANJIN) and SEVEN-ELEVEN (CHENGDU) work to provide safe and reliable products by leveraging quality management and product development capacities cultivated in Japan.
Quality Management at Plants
For the Group’s private-brand products in China, strict standards are applied in selecting ingredients, and processing plants that maintain high quality levels are selected through a screening process based on whether they have experience exporting to Japan and other criteria.
We have strengthened quality management at dedicated plants producing only the Group’s products by incorporating international food safety management systems and measures implemented at plants in Japan. Beijing Wang-Yang Foods and JEANAVICE factories, which are dedicated plants of SEVEN-ELEVEN (BEIJING) and SEVEN-ELEVEN (TIANJIN), obtained the “SC” food production license for chilled foods in February 2017, earlier than peer companies in the industry. “SC” is a regulatory requirement related to food production in China. Food manufacturers must acquire the “SC” license by switching from the existing “QS” food quality and safety license by October 2018. Beijing Wang-Yang Foods acquired HACCP*1 certification in March 2018 with the aim of raising quality levels even further. At the JEANAVICE Factory, Chinese plant managers and the manager of the quality control division attend the HACCP inspections of daily food processing plants that are implemented annually by Seven-Eleven Japan, and the manager of the quality control division obtained qualification as an internal inspector under FSSC 2200*2.
Yuanqi Food Co., Ltd., which functions as an exclusive plant of SEVEN-ELEVEN (CHENGDU), relocated to a new plant in the fiscal year ending February 28, 2019. As a result, manufacturing processes that were previously performed manually have been automated, enhancing the stability of product quality.
- HACCP (Hazard Analysis and Critical Control Point) food sanitation management method
- A food safety management system certification
Giving Consideration to Health
In response to an increase in health-conscious customers, the three companies are working to provide products with a good nutritional balance.
In 2016, SEVEN-ELEVEN (BEIJING) renewed its boxed lunches based on the concept of “Abundant vegetables, low calories and healthy.” It also started display calorie information at the same time.
Also, 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) and SEVEN-ELEVEN (TIANJIN).
In the fiscal year ended February 28, 2018, SEVEN-ELEVEN (TIANJIN) began supplying fried tomato and egg as well as eggplant dishes that use contaminant-free vegetables that meet national standards for residual agricultural chemicals, nitrates, and so on.
Improving Customer Satisfaction
The three companies are working to collect customer feedback in order to improve products and services from the standpoint of customers. Feedback obtained from customers is shared with departments and stores on a daily basis. In addition, in order to grasp changes in customer needs and reflect them in products. SEVEN-ELEVEN (CHENGDU) conducts annual surveys while SEVEN-ELEVEN (TIANJIN) conducts surveys every other year. In the fiscal year ended February 28, 2018, SEVEN-ELEVEN (CHENGDU) received responses from 1,023 customers and based on the results, launched a delivery service.
In order to further improve the customer service provided by employees, the three companies conduct training and established award programs. SEVEN-ELEVEN (CHENGDU) conducts store employee training that includes 15 minutes of customer contact simulation. Starting in the fiscal year ended February 28, 2018, SEVEN-ELEVEN (TIANJIN) has been conducting cash register customer contact training at model stores. The training has produced significant effects including improvements in cash register customer contact of 50 points or more are being seen after the training compared to before, and consequently, the company plans to introduce the training to all stores starting in the fiscal year ending February 28, 2019.
SEVEN-ELEVEN (BEIJING) created customer service awards to recognize employees who provide outstanding customer service. The awards are presented in a group ceremony every three months. We will strive to enhance motivation by presenting awards to recipients at meetings and other such forums in conjunction with striving to increase examples of best practices for employees to follow by making the award-winning activities widely known.
Presentation of awards by SEVEN-ELEVEN (BEIJING)
Thriving with Local Communities
Each company conducts social contribution activities as members of their local communities.
Environmental Preservation Measures through In-Store Donations
SEVEN-ELEVEN (BEIJING) installed collection 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.
In the fiscal year ended February 28, 2018, a total of 126,434 yuan was donated in July. SEVEN-ELEVEN (BEIJING) plans to implement a new program to donate a portion of product sales proceeds to the Beijing Green Fund in the fiscal year ending February 28, 2019.
|147,763 yuan||148,189 yuan||126,434 yuan|
Support for Children
Since 2013, SEVEN-ELEVEN (CHENGDU) has continuously provided support for Benevolence House, a home for children with brain disorders. In 2017, employees visited the facility in August and December to play games with the children and participate in a Christmas event and a birthday party. The employees provided entertainment and delivered toys and other presents to the residents.
In addition to supporting Benevolence House, in the fiscal year ended February 28, 2018, SEVEN-ELEVEN (CHENGDU) donated 100,000 yuan as relief aid for the landslides that occurred in Mao County, Sichuan Province in June. In recognition of this donation, the company received a Certificate of Appreciation from the Chengdu Charity Foundation.
Value of Goods Donated to Benevolence House by SEVEN-ELEVEN (CHENGDU)
|800 yuan||1,937 yuan||1,826 yuan|
A visit to Benevolence House
SEVEN-ELEVEN (CHENGDU) has designated each July 11 as “7-11 Day” since 2012. On that day, all Head Office employees collect rubbish and waste in the area of the Head Office with the aim of contributing to creating a clean urban environment.
Creating Fulfilling Workplaces
In continuing to expand our network of stores in China, it is essential that we hire and train local employees. The three companies are focused therefore on raising the communication abilities of employees and train them to be able to think and act with autonomy. To this end, the three companies are working to provide various training seminars and create workplaces where employees are able to demonstrate their abilities to the fullest.
Supporting development of employee abilities
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 staff; and management indicators. SEVEN-ELEVEN (TIANJIN) conducts training of AFC (OFC assistant) candidates selected from among employees who work at stores to provide knowledge about OFC duties and enhance managerial skills. They accompany veteran OFCs during store visits and address store improvement issues. At the conclusion of the training, the candidates give presentations on proposals for store improvement and earn their AFC qualifications.
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.
Systems to Raise Employee Motivation
Various initiatives are implemented to provide opportunities to raise employee motivation and resolve issues they may face in the workplace. In addition, SEVEN-ELEVEN (TIANJIN) and SEVEN-ELEVEN (CHENGDU) have instituted internal hiring programs that allow employees to apply for desired positions. They are selected on the basis of interviews between the applicants and the relevant Head Office divisions, the Human Resources Department, and so forth. In the fiscal year ended February 28, 2018, six employees were transferred to requested divisions under this program. SEVEN-ELEVEN (BEIJING) gathers opinions from employees and gathers opinions from employees and has established structures for conducting interviews when renewing employment contracts and when employees separate from the company in order to make improvements. The Company conducted surveys on career motivation among OFCs and store managers in FY2016 and FY2017 and reflected the results through changes to training and pay systems and the workplace environment.
Examples of systems for raising employee motivation
- Operate a contact desk so that employees can consult with the company on issues
- Interviews with employees by personnel departments
- Interviews with new employees by supervisors
- Organize employee get-togethers to promote closer interaction and socializing among employees
- Conduct questionnaires on motivation
- Share information about role models among employees by conferring awards upon talented employees
Evaluation and Remuneration
The three companies 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. After self-assessments are carried out by each employee, yearly 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 perform evaluations, regular training is carried out on matters such as monthly evaluation methods for subordinates and on determining pay in accordance with these evaluations. The training enables managers to obtain the correct knowledge on these matters.
In the fiscal year ended February 28, 2018, SEVEN-ELEVEN (BEIJING) clarified and comprehensively implemented rules on company results, individual evaluations, and determination of bonuses in order to accurately reflect the company’s results and individual work performance in wages.
Barring special circumstances, employees of the three companies leave their workplaces at the appointed times when their shifts end. If overtime is deemed to be necessary, employees must seek permission from their supervisors in advance. Procedures call for supervisors to manage the daily and monthly overtime hours of employees in order to prevent employees from doing unnecessary overtime. In order to conduct thorough management, starting in the fiscal year ended February 28, 2018, each month SEVEN-ELEVEN (BEIJING) sends information on the status of overtime work and use of annual paid vacation time in the previous month to the heads of each division and reinforced the provision of guidance by supervisors to the responsible personnel. In addition, management of overtime work is an item of store manager monthly evaluations, and appropriate shift and personnel management is performed.
Promoting the Advancement of Women
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 practice 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). Appointments continued in 2017, and women currently occupy approximately half of the non-executive managerial positions at the three companies. In March 2018, SEVEN-ELEVEN (BEIJING) appointed women in the roles of vice president and director.
With the aim of hiring outstanding human resources, hiring local personnel, and promoting the education of youth, SEVEN-ELEVEN (TIANJIN) conducts internships and has been recognized by the government as a youth employment intern base that promotes the employment of young people who have graduated from high school. In the fiscal year ended February 28, 2018, SEVEN-ELEVEN (TIANJIN) accepted 27 interns, of which 10 gained employment with the company.
Employee-Related Data (As of December 31, 2017)
|SEVEN-ELEVEN (BEIJING)||SEVEN-ELEVEN (TIANJIN)||SEVEN-ELEVEN (CHENGDU)|
|Full-time employees (Male and female)||599 (316・283)||221 (90・131)||279 (127・152)|
|Part-time staff Number of employees||940||371||822|
|Ratio of employees with disabilities||2.0%||2.7%||3.6%|
|Ratio of women in management positions, excluding executives||58.4%||48.5%||59.2%|
Reducing Environmental Impact
The Chinese government has been putting great emphasis on climate change issues. In Beijing, companies with annual CO2 emissions in excess of 5,000 tons are subject to upper limits on emissions in each industry as major emitters and must purchase emissions credits for the excess portions. SEVEN-ELEVEN (BEIJING), which subject to this program, saw electricity consumption per store decline in the fiscal year ended February 28, 2018 compared to the previous year, but emissions exceeded the limit as a result of an increase in the number of stores and expansion of coffee machines, and consequently, the company purchased emissions credits for 7,000 tons. Similarly, SEVEN-ELEVEN (TIANJIN) and SEVEN-ELEVEN (CHENGDU) also reported lower electricity consumption per store compared to the previous year but higher total electricity consumption.
Energy Conservation Measures at Stores
The three companies installed LED illumination in all stores in the fiscal year ended February 28, 2018. Other measures to reduce electricity consumption were also implemented, such as installing curtains in walk-in refrigerators to prevent the outflow of cold air, installing energy-saving equipment, and conducting education to raise customer awareness. In the fiscal year ending February 28, 2019, LED illumination will be installed in new stores, and SEVEN-ELEVEN (CHENGDU) plans to install inverter type refrigeration equipment.
A curtain installed in a walk-in refrigerator
The three companies also implemented the following initiatives in the fiscal year ended February 28, 2018 as part of the 7-Eleven Global Campaign to Fight Climate Change*.
(1) Seminars held for all employees
Shares materials were prepared and employees were instructed on the causes and effects of climate change, international trends, developments concerning the Chinese government, measures for saving electricity as stores, and other topics. The seminars were held from June through the first week of July during portions of managerial conferences, FC meetings, and morning meetings, and were conducted at individual stores for employees.
(2) In-Store Implementation
During the week of July 11, posters in the Seven Rules of Electricity Conservation were displayed in store backrooms and energy conservation measures such as washing filters were implemented.
* SEJ and 11 overseas Seven-Eleven operating companies implemented measures to mitigate the effects of climate change around July 11 (7/11) in line with the “Seven-Eleven” name.
|Number of stores||150||175||187||219||247|
|Electricity consumption (MWh)||19,648||19,366||18,122||24,856||25,702|
|Number of stores||56||60||70||82||118|
|Electricity consumption (MWh)||8,472||6,164||5,278||7,027||10,077|
|Number of stores||66||60||67||87|
|Electricity consumption (MWh)||7,319||7,746||6,031||7,892|
Environmental Measures at Dedicated Plants
In order to avoid wasting resources, efforts are being made at the Beijing Wang-Yang Foods and JEANAVICE factories, both of which are dedicated plants of SEVEN-ELEVEN (BEIJING) and SEVEN-ELEVEN (TIANJIN), to utilize unneeded food materials generated by each plant as feedstock for a pig farm. The JEANAVICE Factory has a nursery collect residual bread under contract. Both plants use wastewater treatment facilities that clean water to the same or higher standard than government standards to ensure that polluted water is not discharged and conduct periodic investigations of smoke emissions from the perspective of preventing atmospheric pollution.
List of Awards Received in the Fiscal Year Ended February 28, 2018
|Employer that Promotes the Employment of Disabled Persons||Dongcheng District Disabled Persons (Disabled Persons Association)|
|China Best Employer Nomination Award||Sponsored by the Zhilian Recruitment and Beijing University Corporate Social Responsibility and Employer Brand Advertisement Research Center|
|Most Charitable Company Award||Chengdu Charity Federation|