Dive Brief:
- Warabeya North America, a division of Japanese food supplier Warabeya Nichiyo, is delaying the opening of a new production facility in Ohio to an undetermined point in the future, according to an announcement earlier this month.
- Warabeya, a longtime supplier of ready-to-eat foods to 7-Eleven c-stores, cited a potential supply chain review of 7-Eleven in North America as part of its reasoning for the delay.
- This pause comes as 7-Eleven steps up its efforts to improve its reputation as a foodservice destination. The company has been focusing on building more of its larger, food-focused c-stores, increasing the number of QSRs at its locations and more recently, adding kids’ meal deals and catering to its restaurants.
Dive Insight:
7-Eleven noted in its Q4 2024 earnings that its plan for the Warabeya partnership was to continue to drive quality improvements to some of its core items while also innovating on some new offerings. But just over a year later, that plan seems to be shifting.
7-Eleven’s leaders said in its latest earnings Q&A that they’ve put many supply chain changes in North America on hold, “not just the Ohio Commissary but all new projects, so that we can really understand how they all fit into the future, so that we, Warabeya, and other suppliers can grow together going forward.”
7-Eleven leaders specified that they still have a good relationship with Warabeya despite this delay.
The planned 140,000-square-foot, $81.5 million plant, originally announced in 2023, was expected to provide packaged foods to about 2,500 7-Eleven and Speedway stores in the Midwest.
“We are currently continuing careful discussions,” Warabeya said in its announcement. “However, as it has become necessary to review the production plan for the new plant, we have decided to change the operation start date to be determined.”
