Reply #4: this was posted a few days ago--7/11 contracts with citgo is up [View All]

[niyad]

next year, and this decision was announced last year. will find the link.



The TRUTH about 7-Eleven/Citgo - decision made in 2005
http://www.csnews.com/csn/search/article_display.jsp?sc...

DALLAS -- 7-Eleven Inc. is rolling out its own brand of gasoline in anticipation of the expiration next month of its 20-year contract with CITGO Petroleum Corp. CITGO recently announced that it is cutting 14 percent of its 13,000 service-station network across 10 states, including Texas where the c-store giant is headquartered, and selectively in four other states

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The main advantage of buying unbranded fuel is price. A company's ongoing costs will be lower with unbranded versus branded, said Tower's Rogers, in addition to the benefits of better service and the ability to control its own destiny.

For the most part, 7-Eleven's plans are being met with optimism among its licensees and franchisees. About 3,300 of the chain's more than 5,800 stores in North America are operated by franchisees, and approximately 430 are operated by licensees.

"I think it's a good decision. CITGO is a good brand, but it wasn't the best," said Ed Denario, a franchisee and U.S. senior vice president for 7-Eleven Franchisees in Long Island. "We (7-Eleven) have such a strong brand and a strong logo. We have the strongest brand in the convenience store industry. I think customers will accept it with no problem."