FamilyMart has not achieved profitability in the Chinese mainland for 10 years, and just as they began to turn a profit, they faced soaring rents. 24-hour convenience stores have become a necessity for modern urbanites, especially young people. You likely walk into a convenience store every day; according to industry estimates, each person from age 18 to 40, over 22 years, can bring over 70,000 yuan in consumption to a store. With everyone's active participation, these small shops of about 100 square meters hide many interesting details. Here are 28 little secrets of FamilyMart:

  1. FamilyMart has built 7 boxed meal factories in China, selling 300,000 boxed meals daily, making it the largest "small cafeteria" in the mainland.
  2. FamilyMart uses 10 tons of rice daily to produce boxed meals, resulting in 40,000 jin (20,000 kg) of cooked rice.
  3. If you look closely, you'll notice two colors of labels on FamilyMart's bento boxes: orange labels expire at 16:00, and green labels expire at 23:00.
  4. The last line of the price tag indicates the microwave heating time for each bento. The microwave principle is that water molecules vibrate to generate heat, and rice, chicken, and vegetables have different water contents. When the chicken leg is fully cooked, the rice might be dry; when the rice is hot, the chicken leg might still be cold. FamilyMart conducts multiple tests in advance to design the optimal heating time for each bento.
  5. Among dozens of bento varieties, the most popular is Cheese Curry Pork Cutlet Rice, selling an average of 10 boxes per store per day.
  6. FamilyMart processes over one million transactions daily, with non-cash transactions accounting for about 35%. Among these, Alipay and bank cards are almost evenly matched.
  7. Baozi (steamed buns) are the top item paired with coffee purchases.
  8. You might wonder why FamilyMart often offers "buy one, get one at half price." This strategy aims to increase gross profit. Although items are discounted to half price, when consumers add an item, the store earns half the gross profit on that additional item.
  9. 60% of FamilyMart's customers are women. Catering to their preferences, FamilyMart selects products based on convenience rather than price, and attractive packaging, freshness, fun, and trendiness are most appealing.
  10. New product launches are crucial for convenience store marketing. At FamilyMart, about 100 products are replaced every two weeks, and about 1,000 items are delisted annually.
  11. Unlike hypermarkets and supermarkets that attract family consumers, convenience stores focus on "single-person consumption," so they sell small packages.
  12. FamilyMart spent a year researching how to make the printing on coffee cups meet food-grade standards. They designed anti-scald ridges on the paper cups instead of adding an extra sleeve like some coffee shops, allowing customers to grab one cup in one motion without extra steps. Currently, FamilyMart stores selling coffee average 40 cups per day, aiming to become the largest coffee chain in Shanghai.
  13. FamilyMart stores sell an average of over 400 oden items per day. 700 stores have ice cream machines, and during the hottest summer days, a single store can sell 100 ice creams a day, making it the largest cold drink shop.
  14. FamilyMart also has "invisible businesses" for consumers; for example, it sells over 400,000 bottles of red wine annually, with one type pre-ordered at 30,000 bottles a year at a price more than half cheaper than e-commerce prices.
  15. FamilyMart's store design ensures that when a customer enters, the first things in view are fresh foods like bento and bread, as well as "quasi-fresh" items like oden and ice cream, because these account for half of FamilyMart's sales.
  16. FamilyMart counters typically have rounded corners so children won't bump into them. The upper part of the counter has an extended ledge for customers to place bags during checkout. The lower part is recessed to accommodate wheelchair users, allowing their feet to fit without hitting the counter or getting stuck, making it easier to approach.
  17. Unlike most convenience stores that use a single light source, FamilyMart uses two types: a white cool light in the center and a yellow warm light around the perimeter. This lighting makes the store look warm from outside while remaining bright inside.
  18. If you pay attention, you'll notice FamilyMart has several industry-first design features. For example, it uses suspended ceilings, which triples the ceiling decoration cost compared to competitors. Additionally, it is the only convenience store that installs lighting above the inner side of bread shelves.
  19. To ensure unobstructed sightlines, when designing the safety railing on the second floor of two-story stores, they removed the stainless steel pillars connecting two glass panels and used more expensive pure glass railings. They also added soft cushions to wooden chairs in the rest area, designed to be slightly more comfortable than average.
  20. Ten years ago, one secret of convenience store decoration was using large floor tiles instead of small ones to save about 20% construction time. However, ten years later, FamilyMart still uses all small tiles because they provide better slip resistance.
  21. FamilyMart has not achieved profitability in the mainland for 10 years, and just as they began to turn a profit, they faced soaring rents. This year in Shanghai, some real estate agents have snatched many of FamilyMart's prime locations by offering 2-3 times higher rents.
  22. For all business formats, location is the most critical success factor. Convenience store locations are generally divided into communities, office buildings, community+office, hospitals, airports, train stations, etc. Generally, areas with high foot traffic like hospitals, airports, and train stations can generate the highest sales. In 2015, FamilyMart's highest-grossing store was the Beijing airport store.
  23. The highest-grossing stores are not necessarily the most profitable because they often have high rents. In these areas, FamilyMart prioritizes brand exposure over profitability. These locations attract customers from all over the country, allowing more consumers to learn about FamilyMart.
  24. Although high-traffic areas can generate higher sales, for convenience stores, the key is to secure regular customers. FamilyMart's repeat customer rate is 60-70%. A store manager earning an annual salary of 300,000 yuan told The Paper that she recognizes 8 out of 10 customers.
  25. FamilyMart currently has over 1,500 stores in China, with 70% being franchise stores. To enhance employees' "ownership" spirit, FamilyMart adopts an internal franchise model, developing internal employees as franchise store managers. The headquarters handles site selection, equipment, and products. FamilyMart believes this is the only way to control store quality and overcome the "connected but not locked" problem of external franchising.
  26. The average age of franchise store managers is only 28.7 years old. If they manage a store well, they can earn an annual salary of over 300,000 yuan.
  27. Many franchise store managers run their stores with parents or relatives. Two sisters jointly obtained the operating rights for 6 stores. The most successful manager recruited dozens of relatives and friends from Fujian and secured the operating rights for 5 stores.
  28. FamilyMart's most encouraged franchise model is for a couple to contract two stores, which can eventually be passed down to the next generation. Their internal slogan to attract employees to franchise is: "One year to prepare, three years to settle down, six years to live comfortably, ten years to pass on the family business." (Source: Convenience Store Boss Internal Reference)