Seven Eleven, will it continue the success of Seven Cafe with freshly brewed tea? Aiming to expand its footprint, the company targets the establishment of 1,000 stores within the next 3 years.
Convenience store tea” may become as popular as coffee with the development of tea by the largest convenience store chain.
Source:Nikkei Nov 18th 2023
Seven-Eleven Japan has launched a trial sale of freshly brewed tea called “Seventea” in a few stores in Tokyo. One of the trial locations, the “Seven-Eleven Shibaura 4-chome store” in Tokyo’s Minato ward, has dedicated tea equipment placed alongside the existing Seven Cafe for freshly brewed coffee. Customers can choose from three blends – Darjeeling, Assam, and Earl Grey – and watch as the tea is extracted from the selected tea leaves in about a minute. The options include plain tea and milk tea, with choices for hot or cold. The pricing, at ¥102 for a regular-sized iced tea and ¥232 for a large-sized hot milk tea, mirrors that of coffee. While currently treated as an experimental offering, Seven-Eleven plans to address challenges, gradually expand the participating stores, and prepare for a full-scale rollout after 2024. As a retail giant with over 21,000 convenience stores nationwide, Seven-Eleven aims to capitalize on the growing popularity of tea, especially among women, and attract customers, including those who may not prefer coffee or belong to the younger Generation Z.In the Japanese coffee market, the All Japan Coffee Association reports a consumption of 432,875 tons in 2022, surpassing the previous year’s figures but showing an 8% decrease compared to the peak in 2016. On the other hand, according to Fuji Keizai, the combined sales of tea specialty shops and tea stands/cafes offering Japanese and Chinese teas totaled ¥41.7 billion at the end of 2022, with a slight decrease compared to the previous year but a 4% increase from 2020. Recognizing the growing trend and demand for tea, Seven-Eleven’s strategy involves diversifying its offerings, including limited-time coffee subscription services and expanding the selection of in-store beverages, such as introducing smoothies made from fruits and vegetables.