They have a lot of proprietary equipment which they have developed in the sipping category, ice-creams and a lot of other products. That is what they provide to us and it is a much deeper relationship. We have partnership with Hain Celestial on organic and natural food. Our ecosystem will help us to make and deliver products, It can create whatever our consumer wants.
They want us to become profitable as soon as possible and for that they charge a franchise and royalty fee. You said it is more sipping, munching, fresh food so on and so forth. So, Terra Chips sensible portions are being now manufactured in India. We have multiple partnerships for multiple products. One of our brands is Tasty Treat which is the largest in munching category for us. Our ecosystem will come into play with 7-Eleven also in a bigger way.
The chains embraced this model because more outlets meant more income generated.
It improved the efficiency of product deliveries as well.
This expanded role let operators defy market maturity and continue adding stores."We don't think the market is overcrowded," Isaka said Thursday.
But competition keeps growing, and convenience stores now battle new entrants such as drugstores that have begun selling food and online shopping services.
The company intends to open 900 new locations in fiscal 2019, down 40% on the year and the fewest in nine years, while closing 750 outlets.
Japan's largest convenience store operator lifted its net total of outlets by 850 for fiscal 2016, 838 for fiscal 2017 and 616 for fiscal 2018.
Just to give an example, Thailand as a country has 11,000 7-Eleven stores.
It is a 30-year contract in which we are building a joint business plan.