There have been noticeable moves to reexamine the 24-hour operation of convenience stores. While maintaining their social infrastructure functions, it is imperative to reform the operation of convenience stores into a sustainable business model.
FamilyMart Co. has announced it would allow its franchises to shorten their business hours from next March. Almost all of its about 16,000 stores will be covered by the decision.
In the case of the nation's largest convenience store chain operator, Seven-Eleven Japan Co., shorter business hours that started at eight franchises will expand to 75 stores next January. Lawson Inc. has already adopted shorter business hours at 118 of its stores.
As it has become difficult to secure employees for late-night shifts due to lack of workers, it does not make sense for the headquarters to continue to stick to around-the-clock operation.
Most convenience stores are run by people who have franchise contracts with the headquarters. It would be a realistic judgment for individual convenience store chain operators to aim for coexistence and co-prosperity with franchisees while giving consideration to the needs of their franchised stores.
There are nearly 60,000 convenience stores across the nation. In times of disaster, they serve as bases for the provision of goods and for assisting people on their way home. They are indispensable to residents. There are strong voices, especially in regional areas, that shorter business hours are acceptable as long as the stores continue to operate. It is hoped that the decision on shorter business hours will be made according to the needs of individual regions.
Lawson will conduct a trial run on Jan. 1 of next year in which 50 to 100 of its stores will be closed. After checking the impacts of the closures, it will decide whether to implement full-scale closures on Jan. 1 in 2021 and onward. It is essential to reexamine the ways of operating convenience stores flexibly, including the practice of never closing.
According to a survey of convenience store owners conducted by the Economy, Trade and Industry Ministry, more than 80 percent of them are able to take no more than one day off per week. About 30 percent of respondents answered that they "spend more than 12 hours" a day in dealing with customers over the counter.
Many owners said "the rise in personnel expenses depresses business operations." This indicates a harsh business and labor environment surrounding convenience stores.
As a matter of fact, not a few convenience store owners continue to engage in 24-hour operation for fear of a drop in sales.
Business improvement of franchised stores is a big challenge for each convenience store chain operator.
FamilyMart has put forth a policy of increasing monthly assistance money from 100,000 yen to 120,000 yen for franchisees if they continue operating 24-hours-a-day.
It is necessary to make positive efforts such as reducing food loss and saving labor through such means as the introduction of self-checkout machines. This summer, FamilyMart made its unagi bento (grilled eel boxed meals) available only by advance reservation, thus reducing the value of food discarded by 80 percent from a year earlier and increasing franchisees' profits by 70 percent.
It is effective for franchise headquarters to take steps to lessen financial burdens of franchisees after listening to their opinions.
(From The Yomiuri Shimbun, Nov. 22, 2019)
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