The 7-Eleven chain traces its origins back to 1927 when an employee of the Southland Ice Company in Dallas, Texas, began selling eggs, milk and bread from one of the ice house store fronts. The Southland Corporation opened several stores around Dallas which, early on, were known as Tote’m Stores.
The name was changed to 7-Eleven in 1946 and the stores traded from 7am to 11pm. The first 24-hour store opened in Austin, Texas, in 1963 and the first franchise operations began in 1964. The Southland Corporation had financial challenges on a number of occasions and in 1990 transferred 70 per cent of the control of the company to the Japanese affiliate Ito-Yokado. There are now more 7-Eleven stores in Japan than anywhere else in the world – around 31 per cent of the world’s total of more than 67,000 stores.
In Australia, the majority of stores are in metropolitan areas. The expansion of the chain was helped by the acquisition of Mobil petrol stations in 2010. The chain has been in the public eye for all the wrong reasons since a TV program in 2015 exposed many franchisees for wages theft. Investigation by the ABC and Fairfax media found that there was systematic underpayment of wages and doctoring of payroll documentation. Employees who objected (often overseas students working illegally) were threatened with deportation.
Whistle blowers alleged that head office not only turned a blind eye but actively encouraged the practice. The 7-Eleven chain has since stumped up more than $110 million in compensation to underpaid workers.