SEOUL, Jan. 1 (Korea Bizwire) — In the midst of the government banning gatherings of more than five people to prevent the spread of the coronavirus, convenience store owners and franchise headquarters have conflicting interests when it comes to convenience stores’ 24-hour operating system.
Store owners insist that their ‘late night’ operations should be stopped due to the plunge in the number of customers visiting convenience stores late at night.
They claim that the more they operate, the more losses they suffer. In addition, they insist that the 24-hour operating system does not comply with the government’s social distancing guidelines.
The 7-Eleven franchisees association recently asked the franchise headquarters to allow them to adjust the operating hours flexibly for a limited period of time.
Franchise headquarters, however, are reluctant to allow franchisees to suspend late-night operations.
The biggest issue is that the terms of contracts between them are different on the basis of operating hours.
Under the current franchise business act, convenience stores that record a loss during the night from 12 to 6 a.m. for the previous three months are allowed to suspend operations during the night.
In addition, stores located in special commercial areas such as subway stations are already not operating at late night hours.
Against this backdrop, the franchise headquarters are taking a stance that they would not allow the owners of general convenience stores to arbitrarily suspend late-night operations that are stipulated clearly in the contracts.
J. S. Shin (email@example.com)