It is a practical decision to shorten business hours in line with changes in lifestyle.
Departing from the "open 24 hours" policy has spread to convenience stores and restaurant chains.
Labor costs are rising because it is difficult to secure workers at late night due to labor shortages. Many of the stores have seen their revenue drop due to excessive competition from multiple stores in operation. It is understandable that they would like to close during the late-night hours when there are few users.
Reform the way employees work while maintaining customer convenience. The most important thing is to establish a sustainable business model.
Especially at the nearly 60,000 convenience stores nationwide, automated teller machines (ATM) are installed, and utility bills can be paid at stores and packages can be sent from them. They can be used to provide supplies and help people return home in times of disaster. It is important to explore ways to maintain their function as social infrastructure.
A panel of experts from the Economy, Trade and Industry Ministry has proposed a review of the nationwide uniform service system for convenience stores.
According to a ministry survey, many franchisees have complained about the difficulty of working late at night and the harsh working environment in which they can hardly take a holiday. It is not feasible to continue sticking to the policy of "open 24 hours a day, 365 days a year."
In response to criticism, an increasing number of franchises have chosen to shorten their business hours among convenience store chains. That trend can hardly be changed.
Respond to diversifying needs
FamilyMart Co. had shortened business hours of some of its stores on a trial basis. More than half of the stores reported operating profit that was lower than a year earlier, due to a drop in sales. The first challenge is to cut costs.
The headquarters of the chains should try to reduce food loss and reduce the cost of disposing of food by allowing discounts on products whose expiration dates are approaching. It is also necessary to expand labor-saving support, including the introduction of self-checkout systems.
Meanwhile, so-called "family restaurants" and fast-food chains also face a harsh business environment.
Skylark Group, which operates Gusto and other restaurant chains, has decided to abolish its nearly 50-year-old 24-hour operation policy by April. Other chains, such as McDonald's Co. (Japan), have greatly reduced its 24-hour operations as well.
In the past, people who missed the last train and young people had gathered at family restaurants late at night and the chains could attract a certain number of customers. But the number of customers has been decreasing lately.
As business hours become shorter, how to strengthen profitability will be a challenge.
In addition to making work more efficient through digitization, improving menu offerings will likely be among the keys to survive. It is important to be able to respond flexibly to the diversifying needs of customers.
-- This article appeared in the print version of The Yomiuri Shimbun on Feb. 20, 2020.
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