In 2019 a single Seven-Eleven owner in Osaka cut his opening hours and set off a national argument about who carries the cost of Japan’s always-open convenience stores. Seven years later the 24-hour rule is no longer sacred, but the labor math behind the franchise model is harder than ever.
The Night One Store Closed Early
In February 2019, the owner of a Seven-Eleven franchise in Higashiosaka began closing his store between 1 a.m. and 6 a.m. He had lost his wife, could not hire enough night staff, and was working shifts himself. The franchisor warned that the change breached his contract. The dispute went public, and franchise owners across the country said they faced the same problem.
Seven-Eleven Japan terminated the contract at the end of 2019. In 2022 the Osaka District Court upheld the termination. The owner lost the case, but the argument had already changed the industry.
What Changed After 2019
Regulators stepped in
- METI study group (2019–2020) — The Ministry of Economy, Trade and Industry set up a panel on “new convenience store models” and asked the major chains to publish action plans for their franchisees.
- Japan Fair Trade Commission survey (2020) — The JFTC surveyed thousands of franchise owners. It warned that refusing to discuss shorter hours could count as an abuse of a superior bargaining position under the Antimonopoly Act.
Chains loosened the 24-hour rule
The big three chains now let franchisees apply for shorter hours, usually after a trial and talks with headquarters. Seven-Eleven, FamilyMart and Lawson all run some stores on reduced hours. Still, most stores stay open all night, because the night shift handles deliveries, restocking and cleaning, and because owners fear losing daytime customers.
Royalty terms were adjusted
Franchisors pay part of the cost through lower royalty rates and subsidies for staffing and utilities. The basic structure has stayed the same: headquarters takes a share of gross profit, and the owner pays wages and absorbs losses from waste.
Why the Pressure Keeps Building
| Factor | Situation | Effect on franchisees |
|---|---|---|
| Minimum wage | National average passed ¥1,000 in 2023 and has risen sharply every year since | Wages are the largest cost that the owner, not headquarters, pays |
| Store density | Roughly 55,000 convenience stores nationwide, and the total has stopped growing | New stores take sales from nearby stores under the same brand |
| Labor supply | Shrinking working-age population; many urban shifts rely on international students | Night shifts are the hardest to fill |
| Owner age | Many owners joined decades ago and have no successor | Contract renewals are harder to secure |
The chain’s profit depends on sales, while the owner’s profit depends on sales minus labor. When wages rise faster than sales, headquarters and owners stop wanting the same things. That gap is what came into the open in 2019.
Technology as the Pressure Valve
Chains now try to reduce the number of staff hours each store needs instead of changing the franchise contract:
- Self-checkout and semi-self registers — Now common in all three chains, which cuts the number of staff needed at the counter.
- Unstaffed night trials — Lawson and others have tested overnight operation with app or card entry and remote monitoring.
- Cashless payments — Fewer cash drawers to count shortens closing work.
- AI ordering — Demand forecasts reduce ordering time and waste, which matters because waste costs fall mainly on owners.
- Shelf robots and remote staff — FamilyMart has tested remote-controlled robots for restocking drinks.
These tools help, but they do not remove the tension. Deliveries still arrive at night, and many customers expect a person behind the counter.
Ownership Shake-Up at the Top
The franchisors themselves are changing. KDDI and Mitsubishi Corporation took Lawson private in 2024. Seven & i Holdings spent 2024 and 2025 fending off a takeover proposal from Alimentation Couche-Tard, which was withdrawn in 2025. New owners and investors want higher returns, and the franchise contract is where that pressure lands. How chains split the cost of automation with owners will decide whether the model stays stable.
Why It Matters for Overseas Partners
- Retail tech vendors — Japanese chains are active buyers of self-checkout, remote monitoring, robotics and demand-forecasting tools that cut in-store labor.
- Staffing and training firms — Demand is steady for recruiting, language training and support for foreign workers.
- Franchise investors — Japan shows what happens when a mature franchise network meets rising wages. It is a useful reference for markets with similar density.
- Food and supply partners — Chains want products that are easier to handle, keep longer and produce less waste.
Conclusion
The 2019 dispute did not end 24-hour convenience stores, but it ended the idea that every store must always stay open. The main question now is who pays for labor as wages keep rising. Chains that share automation savings fairly with their owners will keep their networks. Those that do not may see more stores cut hours or close.
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