A trial to reduce business hours has resulted in a 59 percent drop in operating profits for FamilyMart Japan.The trial by the traditionally 24-hour convenience-store chain operator was conducted from October to December at around 600 FamilyMart outlets to assess the effect of cutting late-night hours of business.
While average labor costs fell 11 percent at participating stores, the average drop in sales of 6.7 percent led to the operating profit declines, according to a Jiji Press report. 41 percent of the outlets recorded growth in profits.
FamilyMart Japan has now announced that it will allow its franchises to apply to reduce their hours permanently beginning in June.
“From now, we will ask franchise store owners to decide whether to shorten service hours,” said FamilyMart VP Toshio Kato.
Stores will be allowed to close late-night and early-morning operations daily or on Sundays only.