TOKYO -- Major convenience store operator FamilyMart Co. has conventionally been franchised to teams of two, often husband and wife, but recent changes to franchisee contracts have allowed shops to be run by solo managers. The company's move comes as Japan's population decline has triggered a labor shortage in the industry, which has become a key part of social infrastructure in the country.

In August 2024, Manami Murata, 28, became the owner of a FamilyMart store in Ishinomaki, Miyagi Prefecture, fulfilling a long-held wish. She aimed for the shop to be rooted in the local community, putting to use her roughly seven years of part-time experience, while valuing casual conversations with the regular customers.

Murata decided she wanted to run her own shop when the owner of the store she had worked at retired due to old age. However, the general rules stated that stores must be owned by two people, such as married couples or relatives within the third degree, who can make the business their full-time occupation. Murata's husband was working for a different company, so at the time, she could not become an owner.

Change came in May 2024, when FamilyMart announced it would allow individuals to own shops, even if they lacked experience working at its stores or as a manager. Murata's store was the first to operate under these rules.

"Without this system, I might have given up on establishing my own business," she reflected.

According to FamilyMart, the system was introduced because it had become common for store managers to be hired by multi-shop owners and manage those outlets alone.

Since the change meant that those without managerial experience, such as former white-collar business workers, could own stores, the company improved its support for new owners, such as extending the period of assistance once a store opens and providing money toward staff-hiring costs.

As a result, there were nearly 100 applicants for the new system within its first five months as of the end of October 2024.

A FamilyMart official explained the company will in principle continue to recommend two-person ownership, but shared their hopes for the new system, saying, "The program will be available not only to singles, but couples like the Muratas who work at different jobs. The number of applications has exceeded our expectations, and we are now preparing for the stores suited for the program, and hope to see it blossom in fiscal 2025 and beyond."

Married couple owners ideal, but other factors emerging

The most common format to run convenience stores is for the operating company to give franchise owners signage, products and other forms of support in exchange for royalties upon entering a contract with the head office. Through this relationship, the stores can gain recognizability and know-how. They also have access to products and services and support from upper management.

According to Japan Franchise Research Institute Inc. CEO Yuki Yamaoka, many franchising contracts are limited to corporations or require initial investments of 10 million yen or more (at least around $64,000). For example, it can cost 15 to 16 million yen (up to $103,000) to open even a small ramen chain shop.

In contrast, a convenience store can be opened with an investment between 1 and 3 million yen (around $6,400 to $19,000), with optional plans for the operating company to handle expenses such as building construction and equipment. Since owners can receive such broad supports, it is relatively easy to get started. This is even called a "turnkey business" in reference to how owners can get started as soon as they hold the keys.

Although getting started may be easy, since the stores operate on a 24-hour basis, stably managing the business is a trickier task. In addition to filling in for part-timers when needed, many owners stay on for longer to maximize profits. Some of the reasons married couples fit the role are their ability to provide continuous work, the ease of building trust and availability of tax benefits.

Kenji Yamamoto, who opened the first 7-Eleven franchise in Japan in Tokyo's Toyosu district in 1974, said that he looked for a partner under the condition of owning a store together. At the time, marriage was considered a sign of trustworthiness and married couples were the main component of owners at convenience stores in the United States.

According to Yamaoka, businesses in industries besides convenience stores also recommend that married couples run shops, including work gear and clothing retailer Workman Co. and Daikichi System Ltd., which operates the restaurant chain Yakitori Daikichi.

However, in line with the declining population, a higher proportion of people are remaining unmarried. According to the National Institute of Population and Social Security Research, in 2020 around 28% of men and 18% of women were unmarried -- the highest figures ever. The changing demographics mean married couples can no longer always be expected to fill ownership roles.

Toray Corporate Business Research Inc. chief analyst Tomomi Nagai, who was a member of a Ministry of Economy, Trade and Industry committee on "new forms" for convenience stores, said, "This is not an age in which everyone gets married. It's good to see things are being reevaluated in accordance with changes in the world."

However, even some married co-owners are struggling with tough labor conditions such as being unable to take time off. Based on such circumstances, Nagai pointed out that the companies' headquarters need to provide comprehensive support, saying, "It's good to open the doors wider, but the burden is too great for a single inexperienced person."

The bid by Canada's Alimentation Couche-Tard Inc. to take control of 7-Eleven Inc. from its parent company Seven & I Holdings Co. was a reminder of how ingrained convenience stores are in Japanese society, going beyond retail to everything from administrative services to acting as logistics points during times of disaster.

Industry responses split

How are the other major players in Japan's convenience store industry responding? Lawson Inc. permits single managers as long as they fulfil conditions such as undergoing certain training or having been recommended by a current owner. Meanwhile, 7-Eleven still requires two-person ownership. It says it is not planning to change the policy on the grounds of ensuring stable store management.

(Japanese original by Yuka Kato, Business News Department)