Major convenience store chains are finally moving to reduce food loss. This is because it is now inevitable for them to carry out reforms in response to the demands of the times.
Starting this autumn, Seven-Eleven Japan Co., the biggest company in the industry, is set to begin nationwide the practice of selling near-expiration bento meals and onigiri rice balls at what amounts to a discount.
Purchasers will receive shopping points equivalent to price reductions, thus altering the practice of selling products only at fixed prices.
Lawson, Inc. has also said that it will start, on a trial basis, similar measures at outlets in Ehime and Okinawa prefectures in June.
FamilyMart Co. will switch to selling such seasonal products as unagi broiled eel bento only to customers who order them in advance.
There is great significance to all these measures, as shown by the mass disposal of unsold ehomaki sushi rolls having become an issue of public concern. Efforts should be made to examine the effectiveness of these measures, and, if necessary, to consider raising the shopping-point reward rate and expanding the list of goods covered by the new methods.
Franchisees for convenience store chains are experiencing financial difficulties due to the costs of disposing of unsold products, along with a labor shortage and rising personnel costs. The latest measures will certainly support such franchisees.
Food loss in Japan amounts to 6.43 million tons annually, including waste from ordinary households. This is tantamount to every member of the population throwing away a cup of rice every day. Efforts to reduce food loss should be steadily widened.
Help franchisees
Selling goods at fixed prices is regarded as one of the defining features of convenience stores. They are convenient to use, but their goods are somewhat more expensive than those at supermarkets. However, this has been accepted by consumers.
In 2009, the Fair Trade Commission determined that Seven-Eleven had restricted the discount sale of bento and other items by its franchisees, and it issued an order for the company to end the practice. Stating the reason for its decision, the FTC said Seven-Eleven's action constituted an abuse of its dominant position, which is banned under the Antimonopoly Law.
Still, the practice of selling goods at a discount has not spread very widely. This seems to show that many franchisees fear they may end up being treated unfavorably in the signing of contracts and other matters.
Convenience stores have tried various ways to avoid running out of products if at all possible, so as not to miss opportunities to sell them. Although such efforts have worked to increase sales, they have also contributed to producing a massive amount of waste.
Convenience store chains' strategy for concentrating outlets in limited areas is also exhausting franchisees. In response to calls from franchisees struggling to secure enough employees, convenience store chains have started reconsidering outlets' round-the-clock operations.
The fact that convenience store chains are coming under pressure to promote reforms is a sign that their method of doing business is reaching its limits. Their business model, which forces franchisees to assume many burdens, cannot be described as sustainable.
Most of the close to 60,000 convenience stores in the nation are operating on franchise contracts concluded with the companies' headquarters.
It is desirable for the headquarters and franchisees to seek mutual prosperity and coexistence while also fulfilling their roles as important social infrastructure. Amid a continued population decrease, the convenience store industry must look for a new business model.
(From The Yomiuri Shimbun, May 26, 2019)
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