Japan 7-Eleven franchisee who rebelled over opening hours loses court case

OSAKA • Mr Mitoshi Matsumoto, the man who has waged a David-and-Goliath campaign against the Japanese convenience store giant 7-Eleven, stood in front of a roomful of the company's franchisees on Thursday, bowed deeply and apologised.

Mr Matsumoto has spent the past 21/2 years fighting in court for control of a 7-Eleven store that the company forced out of business after he refused to operate it 24 hours a day, seven days a week. His struggle has become a rallying point for thousands of convenience store owners across the country who have bristled against the company's rigid control of their franchises, hoping that a victory would help them win a measure of independence.

But a judge ordered Mr Matsumoto to immediately hand his store in the Osaka suburbs, which he opened in 2012, over to the company and pay 114 million yen (S$1.17 million) in estimated damages for lost business.

After the ruling, Mr Matsumoto said he was sorry to have let his supporters down, but that he intended to fight on and appeal against the ruling.

"It would have been better if we got a good result, but the push to shorten hours is going to keep moving forward," he said.

A 7-Eleven spokesman said the ruling was "appropriate".

The case's final outcome is likely to have profound implications for the relationships between Japan's convenience store companies and the more than 50,000 outlets they control.

Mr Matsumoto's problems began in early 2019, when he decided he would shorten his store's hours, closing five hours every night in defiance of company policy. He was exhausted, labour had become increasingly unaffordable, and he had decided that the revenue from staying open into the wee hours did not justify the costs.

It was a seemingly small act of rebellion. But standing up to one of the most powerful and ubiquitous corporations in Japan made him a celebrity and exposed the inner workings of an industry long celebrated as a model of efficiency.

His decision set off a years-long - and sometimes surprisingly petty - battle of attrition with the company.

Mr Matsumoto, by his own admission, has not been a perfect representative for the owners' cause.

Private investigators had collected evidence against him that was used in court, including grainy video footage that the company said showed him head-butting a customer.

Either way, the complaints against Mr Matsumoto were irrelevant to the central issue, said Mr Shinro Okawa, a member of Mr Matsumoto's legal team.

Mr Matsumoto said he was looking forward to the fight ahead.

But, he joked: "If I lose again, I'm giving up and moving to America."

NYTIMES