Seven-Eleven Japan Allows Stores to Halt Late-Night Operations

Economy

Tokyo, Oct. 21 (Jiji Press)--Seven-Eleven Japan Co. said Monday that it has compiled guidelines clarifying procedures for franchise stores hoping to halt late-night and early-morning operations.

The move came after the owner of a franchise store in the western Japan prefecture of Osaka canceled its 24-hour operations in February due to a labor shortage, leading to a feud with the company.

After the store owner's action drew much media and public attention, the unit of retail giant Seven & i Holdings Co. <3382> continued dialogue with franchise store owners on shorter operating hours, and the leading Japanese convenience store operator is now effectively forced to change its around-the-clock store operation policy.

Based on the guidelines, eight stores will be allowed from Nov. 1 to close between 11 p.m. and 7 a.m. Including the eight, more than 200 Seven-Eleven Japan franchise stores operate for shorter hours on a trial basis.

To make it easier for franchise stores to halt late-night and early-morning services, the guidelines stipulate how they should treat employees and a schedule for extending the trial period to up to six months. Partial contractual changes, including on reductions in the amount of monthly royalties franchise shops pay to the company, were also set out.

[Copyright The Jiji Press, Ltd.]

Jiji Press