Consolidation, Jersey Mike's, Inflation and Thanksgiving
The Money Out There
A few weeks ago, I discussed the consolidation of the HVAC – that’s, Heating, Ventilation, Air Conditioning – industry. Well, there’s a new target: Convenience Stores.
That’s C-Stores for those of us in the know, like 7-Eleven.
Guess how many 7-Elevens there are in the U.S.?
Evidently, the 10 largest chains combined make up less than 20% of the industry.
In merger and acquisition speak, that’s fragmented, and the M&A folks are all about squeezing efficiencies out of the market.
That’s why Circle-K is looking to buy 7-Eleven. Second question: Who owns Circle-K?
Alimentation Couche-Tard. Their HQ is in Laval, Canada.
Couche Tard is French and roughly translates into “night owl’.
And 7-Eleven is headquartered in Japan.
My original thought for this segment was to emphasize that other industries will be consolidating to gain efficiencies. Why not concrete contractors, roofers, or machine shops?
What industry is your business in, and are you maximizing efficiencies in your operation?
There are two reason:
To best prep you to sell your company.
To help you understand the inefficiencies of other firms in your industry so you can take advantage of that knowledge and buy them. But that’s up to you.
The answer: 12,600 stores.
Another conversation starter for the holiday mixer.
How much does a #16 sandwich, Mike’s Way, sell for?
About $8,000,000,000. Yeah, that’s a lot of zeros.
No, that’s not for a sandwich, but the purchase price for the entire chain.
In a Report dated 9/15/24, I did a report on Peter Cancro, the owner of Jersey Mikes.
In it I stated he bought the original store for $125,000 as a teenager in 1975.
And now you know the rest of the story.
Inflation and Thanksgiving
Costs continue to go up, but some have, in fact, come down.
According to the Farm Bureau, here are the cost changes to various items from one year ago:
Fresh cranberries: up 11.8%
Stuffing mix: up 8.2%
16 pound Turkey: down 6.1%
One pound of frozen peas: down 8.1%
Dozen dinner rolls: up 8.4%
Two frozen pie crusts: down 2.9%
Pumpkin pie mix: down 6.5%
Three pounds of sweet potatoes: down 26.2%
Frankly, with a little effort, you can make your own pie crust. My wife spent some time with daughter #2 today to show her how.
She’s bringing the pumpkin pie.
Speaking of pumpkin pie…
It turns out the folks on the Mayflower had the honor of starting the inaugural Thanksgiving celebration in North America. They landed on what is now Cape Cod on November 11, 1620. While it is documented that they attempted to continue to Virginia, I suspect the captain had enough of people saying, “Are we there yet?” and just dropped the anchor in the closest bay he could find.
A year later, only 53 of the original 103 remained, having lost most to a nasty combination of scurvy, pneumonia, and tuberculosis. They were able to plant crops in the spring of 1621 and, with the help of the local Wampanoag Indians, managed to survive, and it is with the Wampanoags that they celebrated Thanksgiving in 1621, 403 years ago this week.
Fun Fact: The Wampanoags helped the Pilgrims get their act together in exchange for protection from the competing Narragansett tribe. And the protection racket was born…
I have found that the most successful business owners and managers also show their thanks to their employees. So, let’s carve a little time out to thank the folks who helped make you or your department successful or helped take your company to the finish line this year. Whether you have one employee or hundreds, show them you care. It will pay dividends, I promise you that.
Have a wonderful Thanksgiving, and count your blessings; after all, you are in the United States of America, the greatest country in the world. Millions risk their lives to get into the USA each year. Maybe that freedom thing that allows you to be whatever you work hard for has something to do with it. Funny how that works out. Just ask Peter Cancro.
Finally, surveys show that households are NOT planning to reduce their spending for Thanksgiving, showing that family traditions are priceless. Like passing on the homemade pie crust recipe.
And from me, thank you for being a reader and sharing your thoughts with me to help make me better, each and every week.
Have a wonderful Thanksgiving.
Adam
