7-Eleven gives units 'The Works'; Southland testing its own fast-food brands

7-Eleven gives units "The Works'

Southland testing its own fast-food brands

Southland Corp., whose 7-Eleven convenience store chain is rapidly becoming a major force in the fast-food arena, has begun testing its own line of branded fast foods at outlets in the Dallas and Richmond, Va., markets, a company spokesman confirmed.

Called "The Works,' the new line of freshly prepared take-out foods includes Philadelphia cheesesteak sandwiches, kosher-style hot-dogs, fresh pastries and some breakfast items--such as one that resembles McDonald's Egg McMuffin, the spokesman said.

The Works test is running concurrently with a series of other trials, in which well-known fast-food brands are being offered at selected 7-Eleven outlets around the country. Hardee's, Church's Fried Chicken and Rocky Rococo Pizza have each entered into licensing agreements with Southland, which is attempting to establish the viability of selling branded fast foods at its convenience stores.

"This [The Works] is completely different than the Hardee's, Church's or Rocky Roccoco tests,' explained Southland spokesman Jim Willett. "We're trying to see if we can do freshly prepared fast food without the help of the experts.'

A key to the success of failure of the program, Willett added, is whether branded fast foods will "compliment rather than cannibalize' sales of 7-Eleven's already established food and beverage items, such as coffee, deli sandwiches and the company's signature Slurpees and Big Gulps.

Thus far, there is at least some evidence of a positive result. After more than a month and a half, the presence of a mini-Hardee's unit operating in a St. Louis 7-Eleven unit-- the initial test store to feature the branded fast foods--has reportedly helped boost the sales of the outlet's other high-margin food and beverage items.

As for which branded fast foods--Hardee's, Church's, Rocky Roccoco or The Works--will ultimately prevail once the test period has ended, Southland is keeping an open mind.

"We're not certain at this time what direction we'll ultimately take with branded fast foods,' Willett noted. "We will continue to study the situation with the realization that there are different seasons, different climates and different locations to be considered. We don't want a jaundiced view.'

He added that The Works menu will be expanded to additional test sites in the near future.

For fiscal 1985 the more than 8,000 7-Eleven stores chalked up more than $900 million in food-service sales, according to company estimates.

Photo: 7-Eleven executives are hoping to establish their own fast-food line without the "the help of the experts' such as Hardee's, which is currently operating a mini-unit inside a St. Louis outlet.

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