Hello everyone.
Today, I’d like to explain something many people outside Japan probably do not know about Japanese convenience stores:

👉 directly managed stores

In Japan, convenience stores are generally divided into two types:

Directly managed stores operated by company headquarters
Franchise stores operated by independent owners

The store I used to run was a franchise store.

What Is a Directly Managed Store?
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What Is a Directly Managed Store?

A directly managed store is a convenience store operated directly by the company itself.

The store manager is usually a company employee rather than an independent business owner.

Compared to franchise stores, directly managed stores are relatively rare.
Depending on the chain, they are said to account for only about 2–5% of all convenience stores in Japan.

However, despite their small numbers, they play a very important role.

Directly managed stores are often used as:

Model stores
Experimental stores
Training stores

1. Model Stores

One major role of directly managed stores is serving as a “model” for franchise owners.

For example, headquarters may use these stores to demonstrate:

Product displays
Shelf organization
Seasonal promotional areas
Cleaning standards
Customer service style

These stores are often designed to look as ideal and polished as possible.

In many cases, they also use more staff than ordinary franchise stores.

Because of this:

👉 labor costs are often much higher than in regular franchise stores.

In other words, profit is sometimes considered less important than presentation quality and operational standards.

2. Experimental Stores

Directly managed stores are also used as testing locations.

When convenience store companies want to try something new, they often begin with directly managed stores first.

Examples include:

New products
New equipment
New sales methods
New store layouts
New operational systems

Headquarters then studies:

Customer reactions
Sales performance
Operational problems

before deciding whether to expand the idea nationwide.

In that sense:

👉 directly managed stores function as real-world laboratories.

3. Training Stores

Another very important role is education and staff training.

When new franchise managers or part-time workers receive training, they are often sent to directly managed stores.

There, experienced trainers teach them inside a real store environment.

Training may include:

Register operation
Customer service
Cleaning procedures
Product stocking
Basic store management

Because of this, directly managed stores play a major role in maintaining the overall quality of Japanese convenience stores.

The Gap Between Headquarters and Franchise Stores

However, there can also be challenges.

Many headquarters employees begin their careers working in directly managed stores before later becoming supervisors for franchise owners.

The problem is that directly managed stores often have larger staffing budgets and stronger corporate support.

As a result, some supervisors may not fully understand the financial pressure faced by franchise stores.

Most franchise stores operate under very strict labor cost control in order to remain profitable.

Because of this difference in environment:

👉 tensions can sometimes develop between headquarters and franchise owners.

Personally, I believe the best relationships are built when both sides understand and respect each other’s position.

That’s all for today.

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What Is a Directly Managed Convenience Store in Japan?