The realities of 'owning' a Japanese convenience store
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The realities of 'owning' a Japanese convenience store
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Re: The realities of 'owning' a Japanese convenience store
#2The irony is, of course, that the chain is named "Seven-Eleven" because it was originally open from 7 am to 11 pm.
> One Monday night in late March, only 10 customers came to the man’s store in the three hours before dawn, and the sales during that time were a little more than ¥6,000. The store will be in the red if he hired someone for night shifts.
Smart management would close the store during those hours. Of course, the franchise doesn't care for smart management - when the operator eats the loss.
Re: The realities of 'owning' a Japanese convenience store
#3Just came back from Japan and man are there too many convenience stores. Within any given area there is probably 6 to 7 stores within eyeshot and an easy walk. It's weird thinking that they are too convenient, but honestly they start to become pointless. More than once we simply walked by a few knowing that there would be another one just a minute or two more down the street.
It's great that we could find something to eat at 2am when jet lag messed with our eating schedule and nothing else was open except the four 24-hour chain restaurants, 6 full-service Izakayas and a late night curry shop within a 5 minute walk. What would we have ever done without a choice of 6! different convenience stores within the same area?!
Oh and on the way there's vending machines literally jammed into every available urban crack that can fit one where I can service most of my beverage and a few food needs.
I couldn't figure out how these places earn enough money to keep the lights on given the competition, now I guess I know.
Re: The realities of 'owning' a Japanese convenience store
#4The irony is, of course, that the chain is named "Seven-Eleven" because it was originally open from 7 am to 11 pm. > One Monday night in late March, only 10 customers came to the man’s store in the three hours before dawn, and the sales during that time were a little more than ¥6,000. The store will be in the red if he hired someone for night shifts. Smart management would close the store during those hours. Of cours…
I think what they're getting at is that if you want to operate a 7-Eleven, you ought to be absolutely reliably open at the expected hours. The intended alternative is to shut down the store. This man made a terrible business decision and is now stuck between a sunk cost and probably not a lot of alternatives for work.
Re: The realities of 'owning' a Japanese convenience store
#5Just came back from Japan and man are there too many convenience stores. Within any given area there is probably 6 to 7 stores within eyeshot and an easy walk. It's weird thinking that they are too convenient, but honestly they start to become pointless. More than once we simply walked by a few knowing that there would be another one just a minute or two more down the street. It's great that we could find something t…
I mean, I lived there for 5 years of my life and go back often... the alternatives open at 2AM only really exist in the tourist areas or the uber dense areas (Shinjuku, etc). Past 2, you're pretty much only eating conbini food or a "family restaurant" like Denny's, Johnathans or Royal Host if you're lucky enough to be near a 24 hour one.
Re: The realities of 'owning' a Japanese convenience store
#6The problem seems so obvious. There is far more supply than demand. Why do people keep opening these stores when it is clear no one wants them?
Re: The realities of 'owning' a Japanese convenience store
#7I don't understand the demand from the parent company to stay open late, given the lack of customers they clearly have and the oversupply of combini. I was at a 7-11 in Osaka by the dotonbori and it was basically vacant.
Like many things in Japanese society it seems to be because "this is the way it's done".
Re: The realities of 'owning' a Japanese convenience store
#8Just came back from Japan and man are there too many convenience stores. Within any given area there is probably 6 to 7 stores within eyeshot and an easy walk. It's weird thinking that they are too convenient, but honestly they start to become pointless. More than once we simply walked by a few knowing that there would be another one just a minute or two more down the street. It's great that we could find something t…
As the other person said, outside of major areas Konbinis are pretty much the only option to get anything at late. Other 247 stores are relatively rare.
Re: The realities of 'owning' a Japanese convenience store
#9The irony is, of course, that the chain is named "Seven-Eleven" because it was originally open from 7 am to 11 pm. > One Monday night in late March, only 10 customers came to the man’s store in the three hours before dawn, and the sales during that time were a little more than ¥6,000. The store will be in the red if he hired someone for night shifts. Smart management would close the store during those hours. Of cours…
I think what they're getting at is that if you want to operate a 7-Eleven, you ought to be absolutely reliably open at the expected hours. The intended alternative is to shut down the store. This man made a terrible business decision and is now stuck between a sunk cost and probably not a lot of alternatives for work.
That’s the problem with a lot of franchise agreements. So many things are set and specified for you that you have no room to optimize your business as an operator.
In a way, you’re almost just like an employee of the franchisor, but without any of the benefits and a lot more liability. But it’s a great relationship for the person selling the franchise.
Re: The realities of 'owning' a Japanese convenience store
#10The irony is, of course, that the chain is named "Seven-Eleven" because it was originally open from 7 am to 11 pm. > One Monday night in late March, only 10 customers came to the man’s store in the three hours before dawn, and the sales during that time were a little more than ¥6,000. The store will be in the red if he hired someone for night shifts. Smart management would close the store during those hours. Of cours…
I think what they're getting at is that if you want to operate a 7-Eleven, you ought to be absolutely reliably open at the expected hours. The intended alternative is to shut down the store. This man made a terrible business decision and is now stuck between a sunk cost and probably not a lot of alternatives for work.
I have a feeling that 'expected hours' would suddenly and magically stop including 1am-6am, if the parent company were on the hook for the operating losses the franchises are suffering.
But as long as they can make other people pay for their business decisions, that will, of course, not happen.