Japanese Convenience Stores:

 https://mainichi.jp/english/articles/20210114/p2a/00m/0bu/023000c

Article:

The Mainichi Shimbun answers some common questions readers may have about changes in convenience stores' operating hours.

Question: Are changes being made to convenience stores' operations?

Answer: The relationship between convenience store headquarters, which provide the trade name and operational know-how, and their franchise stores has been worsening in recent years. A Japan Fair Trade Commission investigation found cases in which headquarters had refused negotiations with overworked franchise owners to shorten their business hours, along with cases in which franchisees were forced to buy items they didn't want. Eight major convenience store chain operators that were singled out over such problems submitted improvement plans to the Fair Trade Commission last November.

Ideas:

Unfortunately, because of market power there will always be cases where those who the most resources and or power will try to take advantage of their position and not try to level the playing field in a sense. 

In this case, most likely, this has been going on for sometime. But because the convenience store industry was in a good position for many years, and it being an important source of income as a second career of job those who leave a company, there were probably not a lot complaints and or franchisees just tried to do the best they could.

But as labor began to become more constrained, meaning those wiling and or able to work the 12 to 6 AM night shift became less and less, including foreign university students, the franchisee owners have begun to ask for less work hours due to labor shortages.

Article:

Q: What were those improvement plans?

A: The commission pointed out that the actions of headquarters in which they abuse their superior position to force disadvantageous measures onto franchisees "may violate the Antimonopoly Act." The chains' headquarters have admitted to being at fault, with Seven-Eleven Japan Co. stating that their employees lacked understanding in some areas, and proposed plans to boost dialogue with franchisees by educating their employees thoroughly so that they sincerely comply with requests for shorter business hours. The plans also include, when opening new stores, that they give consideration to existing franchise owners in the neighborhood.

Ideas:

The idea that franchisees don't understand some areas might be true, but at the same time its is a company's responsibility to train and educate a franchisee thoroughly about company policies and rules.

If I read correctly, the company is placing blame on the franchisee for not complying with the required work hours. So is a franchisee or his wife supposed to work 24 hour straight each day, or just die from over work. 

Maybe I am reading it wrong, but it seems some companies have absolutely no compassion for their franchisees, they only care about the money they make.

But the other side; the company is saying its employees, who are not the franchisees were not responding to the franchisees request for shorter work hours. That is a more reasonable idea about what they are talking about in the article.

And yes too many stores in the same location is not good, so the idea try to find a different location that is more suitable.

Article:

Q: What will change at stores?

A: There's a possibility that the number of stores abandoning 24-hour operation will increase. As of December last year, some 900 of the around 20,000 7-Eleven stores across Japan had shortened their business hours -- about twice the figure seen in the same month in 2019 -- as headquarters have begun proactively allowing shorter store hours.

Ideas:

Shorter work hours, at the present time and in the present situation is really the only alternative because of the current labor shortage, again meaning, these days, some people just don't want to work or can't work the 12 to 6 AM shift.

And or course because of the pandemic a decrease in sales and then add in less or no sales during the late night shift can only hasten the need to shorten the hours to remain open.

Of course maybe there are some stores who are doing good and will always do good, but how many of the 20,000 are doing good now and or how many might have labor shortage problems for the 12 to 6 AM shift?

Article:

Q: Will there be other changes?

A: It looks like instances of "clearance sales," in which stores reduce the price of items that are near their expiration dates, will increase. Also, if headquarters stop forcing franchisees to buy unwanted items, profit losses caused by stores disposing of foods that are still edible will decrease. But at the same time, customers may face situations in the future where they can't find products they are looking for at convenience stores because shelves are unlikely to be filled with an abundance of items.

Ideas:

I think the idea of "clearance sales" has always been a part of the convenience store strategy, as they beyond the peak evening hours when office workers might stop by the store to get something take home and or after the lunch time crowd has bought their bento, onigiri, and Itoen green tea, then once the afternoon or evening hits there might be a substantial inventory that the store needs to get sell quickly just like in a supermarket as they get into the evening hours with a lot of bento products that haven't sold yet.

The idea of forcing franchisees to buy unwanted products is not good company and franchisee relations. 

Most likely the company has contracts or relationships with vendor to buy and see as certain amount of products weekly or monthly, and as such force the franchisees to buy a certain amount, which the company might know, the franchisee might never be able to see completely.