Japan News: Convenience Stores

https://mainichi.jp/english/articles/20200207/p2g/00m/0bu/014000c

Unfortunately there has been a lot of news lately about the plight of franchise convenience stores in Japan, related to hours and a labor shortage. Such as the case in Osaka a month or so ago, when the franchise person decided to shorten the hours because he couldn't find anyone to work the midnight shift.

Yes consume demand is very important, but there comes a point where the company has to also think of those who operate the stores. If a franchise owner can't find labor who want to work the midnight shift what are they supposed to do but close during that time.

Consumer demand for the midnight to 6/7 in the morning is declining. Companies need to be more flexible.

I remember going to many convenience stores in Yokohama and seeing only international students working and senior citizens working. The same at Mos Burger and McDonalds too.

If there truly is a labor shortage and sales from midnight to 6/7 are declining why can't companies adjust and be more flexible? Business models always should change. What worked 20 years ago, its not what might work today.

Companies need to change and adjust as the need arises, not just stick to what worked 20 years ago. Unfortunately many companies only focus on profits, they focus on the well being of the workers. If they focused more on the well being of the franchise owners and the workers in the stores, the productivity of the workers and franchise owners would increase. There would be more sales and more profits even with a shorter work day.

Companies need to learn to innovate and change and not get stuck into just doing what worked 20 years ago. Consumer behavior never stays the same. Companies need to understand, that the consumer of 20 years ago, is not the same consumer of today.

The same goes for the labor force. The labor force 20 years ago is not the same labor force as today. Innovation and or more flexibility is very important if the convenience store market wants to continue to grow. If not there might be continued decline in franchise stores and those interested in opening a convenience store will decline and workers will continue to shun working part time jobs in convenience stores. Innovate or die, or see a drastically reduced market.


© 2020, Tom Metts, all rights reserved