Will Speedway Actually Change Its Name to 7-Eleven?

As an expert with over 15 years of experience in the retail gasoline and convenience industry, I am often asked if Speedway – one of the largest gas station chains in the Midwest – will be rebranded as 7-Eleven following its acquisition.

This is an understandable question. When big brands merge, people naturally wonder if locations will be converted to the larger brand. However, as we‘ll explore in this comprehensive guide, a full rebrand of Speedway‘s thousands of locations is highly unlikely due to the substantial costs and strategic risks involved.

Here, we‘ll take a deep dive into the histories of Speedway and 7-Eleven, the details surrounding the acquisition, precedent for gas station rebranding, and the factors that will shape whether Speedway eventually adopts the 7-Eleven name. Let‘s start with some quick background on the companies.

A Tale of Two Iconic Gas Station Chains

The Speedway Story

Speedway has its roots tracing back to 1938 when Carl Fisher opened "Speedway 79" in Waukegan, Illinois. Through new store construction and acquisitions, the brand expanded to over 50 locations by the late 1950s.

In 1959, Marathon Petroleum acquired the chain and accelerated growth by building hundreds of new Speedway stations throughout the Midwest. Further expansion came through mergers with other regional gas station brands like Grant‘s, Emro, and Hess.

Here‘s a quick snapshot of Speedway today:

• Founded: 1938 in Waukegan, IL (origin)
• Store count: Approximately 4,000
• Locations: Midwest, East Coast, Southeast
• Ownership: Acquired by Marathon Petroleum in 1959
• Offerings: Gasoline, convenience items, food service

Speedway holds the #2 spot among company-owned gas station chains in the United States, right behind sister brand Marathon. It enjoys tremendous brand loyalty thanks to its 80+ year legacy in the Midwest.

The 7-Eleven Empire

7-Eleven is the world‘s largest convenience retailer, with over 77,000 stores in 18 countries. Its origins trace back to 1927 when an ice house in Dallas, Texas began selling milk, bread, and eggs. This evolved into the first convenience store in 1946.

Fun fact – the stores were originally called Tote‘m until being rebranded as 7-Eleven in 1946 to reflect operating hours from 7am to 11pm.

Here are some key stats about today‘s 7-Eleven:

• Founded: 1927 in Dallas, Texas
• Store count: Over 77,000 (global)
• Locations: 18 countries including US, Japan, Thailand, Australia
• Offerings: Convenience foods, beverages, groceries, fuel (select locations)

7-Eleven has grown through both company store expansion and franchising. It has a portfolio of over 9,800 stores across the United States and Canada.

Now that we understand the scale and history of both brands, let‘s take a look at 7-Eleven‘s acquisition of Speedway in 2020.

7-Eleven‘s $21 Billion Speedway Acquisition

In August 2020, 7-Eleven‘s parent company Seven & I Holdings announced the acquisition of Speedway from Marathon Petroleum in a massive $21 billion deal.

This provided 7-Eleven access to an additional 4,000+ established convenience store and fuel locations primarily across the Midwest and Eastern U.S.

By the numbers:

• Purchase price: $21 billion
• Additional stores acquired: ~4,000 Speedway locations
• New U.S. store count for 7-Eleven: ~14,000
• Markets added: Midwest, East Coast, Southeast U.S.

Strategically, this acquisition gave 7-Eleven a leading presence in 3 of the top 10 most populous metro areas in the United States, including #3 Chicago, #7 Philadelphia, and #9 Detroit.

It also boosted their operations in important markets like Ohio, Michigan, Indiana, Pennsylvania, New York and more. This kind of geographic expansion would have taken decades to achieve through greenfield store construction.

However, despite being under joint ownership now, Speedway and 7-Eleven continue to operate as separate, independent brands. There has been no formal rebranding of Speedway locations to 7-Eleven since the acquisition closed.

This begs the question – will Speedway eventually adopt the 7-Eleven name outright? Let‘s analyze the considerations at play.

Analyzing the Possibility of a 7-Eleven Rebrand

Rebranding over 4,000 established Speedway locations into 7-Eleven would be an incredibly complex, expensive, and risky undertaking. Here are some factors 7-Eleven management is likely weighing:

Potential Benefits of a 7-Eleven Rebrand

Brand Unity – A single unified national brand in 7-Eleven could simplify marketing and operations. Customer recognition already skews toward 7-Eleven over Speedway.

Leveraging Brand Equity – The 7-Eleven name has strong equity. Attaching this equity to more stores could increase sales and traffic.

Cost Savings – Consolidating branding, signage, marketing materials, etc. could generate cost efficiencies.

Potential Drawbacks of a 7-Eleven Rebrand

Significant Expenses – Reimaging 4,000+ stores would require massive capital investment in signage, materials, marketing.

Loss of Regional Equity – Abandoning the Speedway name risks losing regional Midwest brand equity built over 80+ years.

Customer Confusion – Regular Speedway customers may be irritated by sudden name change of trusted brand.

Employee Disruption – Rebranding could spur employee turnover and require extensive retraining.

Midwest Market Dominance – Altering such an established brand in Speedway seems unwise in its core Midwest markets.

Additionally, retaining Speedway as a secondary regional brand provides strategic advantages in certain markets compared to forcing full adoption of the 7-Eleven name nationwide.

Based on these factors, a rebrand appears high risk, high cost. But are there any scenarios where it could occur? Let‘s look at some potential rebranding timelines.

Potential Timelines for a 7-Eleven Rebrand of Speedway

Given the drawbacks, here are some possible timeframes for a full Speedway rebrand:

Next 1-2 Years – Extremely Unlikely

A rapid, sweeping rebrand would almost certainly backfire, given high costs and low customer awareness of acquisition details. Retaining Speedway branding remains prudent during the ongoing integration process.

3-5 Years – Potential for Partial Rebrand

We may see selected Speedway locations in newer, less established markets rebranded as 7-Eleven. However, core Midwest branding likely remains unchanged near-term.

5-10+ Years – Future Possibility

Over an extended timeframe, a larger scale rebrand becomes conceivable. Leveraging loyal Midwest customers who now associate Speedway with 7-Eleven could mitigate risks of rebranding regionally.

Never – Maintain Strategic Dual Branding

Having a separate Speedway regional brand alongside national 7-Eleven locations may provide permanent strategic advantages in certain geographies.

Examining precedents from other gas station acquisitions also provides helpful context on likely branding outcomes.

Lessons from Other Gas Station Acquisition Rebranding

Looking at examples where gas station rebranding did or did not occur after an acquisition gives us indications for the Speedway situation:

Did NOT Rebrand

• Circle K‘s purchase of Shell and Texaco stations
• Couche-Tard‘s acquisition of Casey‘s General Stores

DID Rebrand

• 7-Eleven‘s rebrand of ExxonMobil Speedpass locations
• Alimentation Couche-Tard‘s shift of Mac‘s to Circle K

As we can see, maintaining established regional brands is more common, while smaller chains or new markets are more likely rebranding targets. The strong Midwest heritage of Speedway suggests a Circle K or Casey‘s scenario is most probable.

Additionally, rebranding risks customer backlash if loyalty programs are altered. We‘ll examine how Speedway‘s customer loyalty perks could be impacted next.

Potential Impacts to Speedway‘s Speedy Rewards

Beyond branding, Speedway‘s rebranding could have big implications for its popular Speedy Rewards program. With over 4 million active members, Speedy Rewards drives significant customer loyalty.

If a rebrand occurred, Speedy Rewards would likely eventually transition to 7-Eleven‘s 7Rewards platform. However, this change would need to be incremental to avoid angering loyal Speedy Rewards customers.

Here is one potential transition process:

Initial 1-2 Years – Programs stay separate. Customers see no change.

2-3 Years – Reciprocal benefits introduced between programs to increase perceived value.

3-5 Years – Begin allowing redemption of points across brands.

5+ Years – Full merge under the 7Rewards program.

This slow, gradual shift would minimize customer frustration and preserve loyalty through major changes. Communication would emphasize enhancements rather than replacement.

The same careful change management approach would be advisable for any rebranding. With thousands of Midwest employees and customers invested in the Speedway brand, an abrupt wholesale shift to 7-Eleven could prompt backlash and sales declines.

The Most Likely Path Forward

Considering all we‘ve discussed, here is my prediction for Speedway‘s branding and loyalty program in the years ahead:

• The Speedway name will remain intact across most or all current locations in the short term (1-3 years)

• Any rebranding will be incremental, starting with pilot locations in markets without strong Speedway legacy recognition

• Speedway will operate as a regional subsidiary brand complementary to national 7-Eleven locations

• Speedy Rewards will slowly integrate benefits with 7Rewards over 2-5+ years before fully consolidating

• Marketing will emphasize loyalty continuity and enhancements rather than changes to Speedway identity

• 7-Eleven will tread cautiously in altering such an esteemed Midwest brand with deep community ties

While the landscape could shift, this gradual transition balancing regional branding needs with national synergies seems the most prudent path forward. The costs and risks of rushed, sweeping rebranding of Speedway could severely outweigh any tenuous benefits.

The Bottom Line

Given Speedway‘s 80+ year regional legacy and the substantial costs involved, a full rebrand to 7-Eleven appears highly improbable in the near future based on current information. While limited pilots may occur, expect the Speedway name to endure for years to come, especially in its Midwest stronghold.

For loyal Speedway customers like you, the great news is the convenience, fuel, and rewards you know and love aren‘t disappearing overnight. And over time, any changes will likely be for the better through closer alignment with 7-Eleven.

I hope this comprehensive insider‘s guide has provided helpful clarity on what you can expect from Speedway and 7-Eleven following their major acquisition deal. Let me know if you have any other gas station branding questions!