National Post (National Edition)
7-Eleven plans to sell beer, wine
In-store consumption only, with food
Convenience store chain 7-Eleven's plan to sell wine and beer to consume in its Ontario stores has stoked concerns for the future of a restaurant industry still struggling under COVID-19 pandemic restrictions.
The chain announced on Wednesday that it had submitted 61 applications for a licence to sell beer and wine for in-store consumption, which if approved, could put their stores on par with restaurants and bars.
While the economics of the plan is “puzzling,” one entrepreneurship expert says that even if the applications were to be approved, it would not be a threat to businesses, big or small, within the restaurant industry.
“I don't think there are that many folks interested in sitting in a 7-Eleven and eating a sandwich or having a beer,” said Brad Poulos, who teaches entrepreneurship and strategy at Ryerson University. “7-Eleven food is pre-prepared. That alone limits how good it can be. Any restaurant that can't compete with a 7-Eleven on food quality and service does not deserve to be in business,” he said.
Ryan Mallough, director of provincial affairs for the Canadian Federation of Independent Businesses, said small businesses are concerned about whether the move may change how a province defines a restaurant, and if so, what rules would apply to 7-Eleven.
“If we're defining what 7-Eleven offers as a qualifying restaurant, in addition to the other things they offer, that's going to raise a lot of eyebrows,” he said. “And then ... it's one thing to say that's a restaurant, but are they playing by the same set of rules?”
In an emailed statement, a spokesperson for the chain said stores will serve a “small selection of Ontario-made beer and wine products, offered during limited hours, and in designated consumption areas of our stores.”
The spokesperson did not elaborate on what an indoor seating plan would look like.
Raymond Kahnert, a spokesman for the Alcohol and Gaming Commission of Ontario, emphasized that the locations applying for a liquor licence must have a space “created for the sale, service and consumption of alcohol with food inside the store.”
“Takeout of alcohol would not be permitted,” Kahnert added.
The application process could take up to three months — longer, if there are application errors — which means by the time 7-Eleven starts selling alcohol, the provincial economy could be in different shape, pandemic-wise.
“By the time the dust settles on whether or not the application gets approved, maybe we're far enough out of lockdowns and never come back,” Mallough said.
But if lockdowns were instituted again, would the chain have to shut its indoor dining space or could it offer takeout in the same way as restaurants, alongside their usual products, he wondered.
Poulos agreed that if the applications were approved, then the same rules that applied to restaurants around serving alcohol would have to apply to the chain.
But he is skeptical as to whether a premise of indoor dining could economically benefit the chain.
“Convenience stores have a reasonable amount of dollars of sale per square foot per year,” he said. 7-Eleven, he explained, would have to reallocate potentially profitable shelf space to creating seats for customers.
The Ryerson professor also quashed any concerns that the chain could impact the consumption of alcohol by minors coming in to buy snacks or the chain's popular slurpees.
“They've already got a lot of experience selling cigarettes, which is another regulated product, in fact more regulated ... and keeping it out of the hands of young people.”
Several of the stores are also connected to service stations, which road safety advocates say could lead to impaired driving.
“It's on 7-Eleven to be good corporate citizens and abide by the rules,” said Andrew Murie, CEO of Canadian non-profit Mothers Against Drunk Driving.
Regulation of alcohol, while worth a conversation, should not be enough of a reason to prevent 7-Eleven from obtaining a liquor licence, Poulos said. “We've proven that putting alcohol anywhere does not cause problems. We went through the same arguments for cannabis.”
In fact, it might even make sense for the chain to add beer and wine to their product offerings. “The truth is, look at your classic convenience items, beer and wine are right up there. So they should absolutely be widely available to customers,” he said.