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, Beijing Wang-Yang Foods obtained HACCP*1 certification in March 2018. 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. For example, Chengdu Xinshuwei 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. In addition, 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.

Furthermore, 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. At the same time, it holds monthly workshops to improve product quality and stability for the production management and other departments. SEVEN-ELEVEN (TIANJIN) has also 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 some of its sandwich and salad products in the second half of the fiscal year ended February 28, 2022, and also began releasing room temperature bread from the Zero Sugar series in April 2022. 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 the fiscal year ended February 28, 2021.

In addition, Beijing Wang-Yang Foods, which supplies products to the SEVEN-ELEVEN (BEIJING) and SEVEN-ELEVEN (TIANJIN) areas, introduced a sandwich slicer in 2023 as a labor-saving and anti-microbial measure and, in 2024, introduced a label analyzer to save labor in product name and thermal label management and to eliminate mistakes.

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 in the fiscal year ended February 28, 2019, 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 the fiscal year ended February 28, 2022, 51,231 yuan was donated.

In 2023, it continued to make donations to the Beijing Green Fund, with donation boxes placed at cashier counters and an automatic donation of 0.01 yuan for every cup of coffee purchased, as undertakings in which customers can easily get involved. As a result of these initiatives, total donations for the full year of 2023 amounted to 33,695.3 yuan. Of this, 28,856.49 yuan was raised from coffee sales, while 4,838.81 yuan was received as cash (in donation boxes) from customers. The company were also the recipient of words of praise from the Beijing Green Fund, who indicated that: “We will put these donations to use in continuously undertaking environmental improvements and preservation projects for old trees in Beijing.”

In 2023, SEVEN-ELEVEN (CHENGDU) donated household goods and other items to residents with disabilities in the Wuhou District of Chengdu. This initiative was well received, with the company receiving a letter of appreciation from the government in acknowledgement.

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.

SEVEN-ELEVEN (BEIJING) has traditionally engaged in initiatives to facilitate the development of OFCs such as on-the-job training, online training, one-to-one mentoring, case studies and presentations, and simulations. In addition to these initiatives, from 2023, the company launched a new study format referred to as “monthly themed training,” for new and incumbent OFCs. This was linked to the company’s various duties contact desks and intended to provide more structured and specialized guidance on everything from the process of opening a store, to documentation, equipment maintenance, system checks, handling complaints, and dealing with government inspections, with the training serving to raise the OFC team's work abilities to an advanced level.

Additionally, for daily management, the company implements third-party quality control surveys to ascertain the status of store operations through third-party organization scores and rankings, subsequently offering feedback on the outcomes to OFCs. OFCs then use any problematic area thus identified as starting points for initiatives to improve store management and operational conditions.

Since the second half of the fiscal year ended February 28, 2021, SEVEN-ELEVEN (TIANJIN) has been furthering presentation of issues at store manager meetings. It is committed to improving 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 the fiscal year ended February 28, 2023, 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.

Furthermore, from 2023, it initiated project meetings for the improvement of delivery, fast food, and sales in residential locations, focused on the relevant departments. It shares case studies of best practices, discusses countermeasures and proposals for problematic areas, and formulates and verifies plans to facilitate improved future sales, while also allocating roles and undertaking initiatives on various challenges in unison towards a single goal. Employees are also motivated by being offered the opportunity to participate in projects, through which they can make suggestions and provide advice.

In the fiscal year ended February 29, 2024, SEVEN-ELEVEN (CHENGDU) organized monthly training for the enhancement of abilities of incumbent OFCs, designed to improve their counselling skills. A total of four major themes and 12 classroom lectures were provided, which will actively serve to improve the counselling abilities of OFCs.

SEVEN-ELEVEN (BEIJING), SEVEN-ELEVEN (TIANJIN), and SEVEN-ELEVEN (CHENGDU) implement various initiatives to raise employee motivation and resolve issues they may face in the workplace. SEVEN-ELEVEN (TIANJIN) and SEVEN-ELEVEN (CHENGDU) have, for example, instituted internal hiring programs that allow employees to apply for desired positions, with selection made through interviews between candidates and Head Office departments as well as the Human Resources Department.

In 2023, SEVEN-ELEVEN (BEIJING) reintroduced the Excellent Employee Award. This award is held once per quarter, with stages in the award process including divisional nomination, jury evaluation, president's decision, and the holding of an award ceremony. A total of 31 employees were awarded in the fiscal year ended February 29, 2024, with excellent employees representing all departments and all duties areas receiving awards. The awards were given in recognition of tangible contributions by sales personnel and innovations by administrative departments which facilitate “cost reductions and improved efficiency,” with the awards having served to stimulate employee morale and boost their competitive mindsets.

In the fiscal year ended February 28, 2023, 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 the fiscal year ended February 28, 2023, five employees applied and two 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.

In 2023, SEVEN-ELEVEN (TIANJIN) conducted an employee satisfaction survey and collected a variety of employee requests and aspirations regarding company benefits, attendance at workplaces, as well as internal training and store membership services. Based on this, in the fiscal year ended February 28, 2025, it plans to make a reality of as many of these as possible to the extent that they are feasible, to facilitate improved employee motivation. In addition, for store trainees, it has held regular get-togethers and chat meetings since the fiscal year ended February 29, 2024, to allow it to maintain relationships with their schools, to select outstanding individuals from among the trainees, and to develop them to become OFC candidates. Chat meetings are held to coincide both with traditional Chinese holidays such as Chinese New Year and the Mid-Autumn Festival and to mark the changeover from trainee to full-time employee, accompanied by the presentation of gifts to new full-time employees. It is thus facilitating improvements in their daily work duties by listening to employees verbally express their aspirations, issues, and requests for help. In addition, it holds a social gathering with trainees once a year to better understand the personalities and communicative capacities of all students, which it uses as a reference for developing human resources. Since 2023, SEVEN-ELEVEN (CHENGDU) has held monthly internal workshops and group birthday parties for employees, which have proven highly popular with employees and are leading to increased motivation.

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 2023, SEVEN-ELEVEN (BEIJING) reviewed its rules for annual performance evaluations of employees and introduced KPI values for all positions. Use of the combined method of performance evaluation KGI (KPI+GS) and competencies evaluation KCI has successfully linked individual performance with divisional duties and company performance. At the same time, it sought to improve mutual communication between supervisors and subordinates and promoted inter-divisional cooperation by means including the General Director 360° evaluation and inter-divisional satisfaction evaluation.

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 the fiscal year ended February 29, 2020. Starting from the fiscal year ended February 28, 2021, 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 the fiscal year ended February 28, 2023, 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 2023, the evaluation items and evaluation criteria for the competency evaluation were reviewed and granularity increased, on a trial basis with OFCs and MDs, with the aim of achieving more objective and impartial evaluation criteria.

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.

At the end of May 2023, the total number of managers at SEVEN-ELEVEN (BEIJING) was 26 (manager and above), of which 16 were women, to maintain a level of more than half of all managers, at 62%.

In 2023, SEVEN-ELEVEN (BEIJING) created the first “University Cooperative Information Map” by carefully surveying schools in Beijing and surrounding areas (mainly Jing-Jin-Ji) with specialized university status or above. 19 schools were selected for potential cooperation, with cooperation eventually established with three schools, following the contacting of 197 schools by phone to confirm the intentions of internees and school requirements. As a result, a total of 56 interns joined the company during the year. This guaranteed a supply of operational personnel and enabled the establishment of a reference model for forthcoming industry-university cooperation.

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 the fiscal year ended February 28, 2022, 4 of whom were employed by SEVEN-ELEVEN (TIANJIN). In the fiscal year ended February 28, 2023, it accepted 33 interns, 6 of whom became full-time employees. Of the 4 interns who became full-time employees in the fiscal year ended February 28, 2021, 2 have already been promoted to OFC. SEVEN-ELEVEN (CHENGDU) accepted 14 interns in the fiscal year ended February 28, 2021, 4 of whom was employed by SEVEN-ELEVEN (CHENGDU) in July 2021. In the fiscal year ended February 29, 2024, it accepted 3 interns.

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 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 the fiscal year ended February 28, 2023, achieving energy savings of approximately 320 kW per day, and starting in the second half of the fiscal year ended February 28, 2023, it has saved approximately 80 kW of energy per day by turning off one-third of lighting for about seven hours in the evening. In 2023, it adopted inverter air-conditioning systems, resulting in reductions of approximately 5,256 kW per store per year, calculated on a basis of eight-hours use per day.

SEVEN-ELEVEN (BEIJING), SEVEN-ELEVEN (TIANJIN), and SEVEN-ELEVEN (CHENGDU) re-announced the 12 power-saving articles signs to all stores in 2023 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 2023, the company engaged with the task of optimizing electricity usage in H/C (hot/cold) cases and developed upright hybrid cooling/heating beverage cases in addition to the H/C cases currently in use, as an energy conservation measure. As a result of testing these in some (50) stores, electricity consumption per store was reduced by 10,620 kWH (theoretical value). It is continuing to consider the development of hot beverage fixtures in view of these results.

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.