Japan’s Convenience Store Giants Defend Foreign Workers Against Government Clampdown

Leaders of Major Chains Warn Against Exclusionary Policies as Workforce Dependency Grows

Top executives from Japan’s three largest convenience store chains have issued a rare collective warning to the government, emphasizing the indispensable role of foreign workers in their operations. This public stance comes amid moves by the administration of Prime Minister Sanae Takaichi to tighten regulations on foreigners residing in Japan. The executives argue that restrictive policies could undermine an industry that has become increasingly dependent on international labor to maintain the convenience lifestyle that Japanese consumers have come to expect.

The number of foreign employees working at Seven-Eleven Japan, Lawson, and FamilyMart reached 110,000 in 2025, representing a substantial increase from 80,000 workers just eight months prior in May 2024. This growth trajectory underscores how rapidly the convenience store sector has come to rely on foreign nationals, who now constitute a significant portion of the part-time workforce that keeps these 24-hour operations running smoothly.

Junro Ito, Executive Chair of Seven & i Holdings, the parent company of Seven-Eleven Japan, articulated the industry’s position with clarity. Speaking to reporters at a New Year reception hosted by the Japan Business Federation in Tokyo, Ito emphasized that these workers should not be viewed merely as cheap labor.

“We certainly do not see them as cheap labor, but want them to learn in Japan through work, including their studies,” Ito stated, highlighting a more nuanced perspective on the value foreign workers bring beyond filling staffing gaps.

The executives’ intervention represents a significant moment in Japan’s ongoing debate about immigration and foreign labor, with business leaders taking a public stand against government policies they fear could damage their ability to operate effectively.

The International Student Workforce Behind Counters Across Japan

A significant portion of the foreign workforce in Japan’s convenience stores consists of international students pursuing education at Japanese universities and language schools. Under Japanese immigration law, student status does not permit work in principle. However, students can apply to the Immigration Services Agency for permission to engage in activities other than those allowed under their status of residence. This special permission enables them to work up to 28 hours per week.

This arrangement has become essential for both the students, who need income to support their studies and living expenses, and the convenience stores, which struggle to find sufficient Japanese workers willing to take part-time positions, particularly during overnight shifts. The 28-hour limit is designed to ensure that work does not interfere with the students’ primary purpose of being in Japan: education.

Ito expressed understanding of this regulatory framework, stating, “Rather than letting work interfere with their studies, having the current limit on working hours is OK.” His comment reflects the industry’s acceptance of reasonable restrictions designed to protect students’ educational goals.

However, the Seven & i Holdings chair raised concerns about the broader direction of government policy. “It would be scary for the situation to turn into a form of exclusionism. It’s necessary to protect those who are working without any problems,” Ito warned, suggesting that the current discourse around tightening rules could create an environment of hostility toward foreign residents.

The student visa arrangement creates a unique dynamic in Japan’s labor market. Many of these workers develop valuable skills and knowledge about Japanese business practices and customer service during their part-time employment. Some even aspire to greater involvement with the companies they work for, as Ito noted when sharing enthusiastic comments he has heard from foreign workers.

“If Seven-Eleven opens in my home country someday, I want to be the owner of the first one,” Ito quoted one worker, highlighting the entrepreneurial ambition that can develop through this work-study arrangement.

Industry Fears Global Competition for Labor Intensifies

Lawson President Sadanobu Takemasu articulated a more urgent perspective on the challenges facing the convenience store industry. He expressed a sense of crisis about the industry’s outlook, framing the labor shortage within a global context of competition for workers.

“In the future, there will be a global labor shortage, and it will be an age when workers ponder, ‘Which country shall I work in?’ If they don’t choose this country, it will become one where a convenient lifestyle is difficult (because the convenience store business won’t be sustainable),” Takemasu warned.

This statement reflects a recognition that Japan is not merely competing domestically for workers but must also position itself attractively in an international labor market. As other countries actively recruit foreign workers, Japan risks losing out if it develops a reputation for restrictive or exclusionary policies.

The convenience store industry has long faced serious labor shortages due to Japan’s aging population and declining birth rate. Companies have been working to streamline operations through technological solutions, including self-checkout registers and artificial intelligence systems that handle ordering and other tasks. However, these technological advances have not eliminated the need for human workers, particularly for tasks requiring judgment, customer interaction, and physical handling of products.

Takemasu explained Lawson’s dual strategy for addressing these challenges: “We will make proper use of AI, digital technology and robotics to boost productivity. While preparing a work environment that foreigners will choose, we want to raise productivity.” This approach acknowledges that technology alone cannot solve the labor shortage and that creating attractive conditions for foreign workers remains essential.

The convenience store model that has become ubiquitous in Japan relies on a dense network of stores operating 24 hours a day, seven days a week. This model provides Japanese consumers with unparalleled convenience, from paying utility bills and withdrawing cash to purchasing prepared meals at any hour. Maintaining this service level requires a substantial workforce willing to work varied shifts, including overnight hours that are particularly difficult to staff with domestic workers.

Policy Gaps Leave Convenience Stores in Regulatory Limbo

FamilyMart President Kensuke Hosomi addressed a specific regulatory gap that affects the convenience store industry. He cautioned against excessive tightening of regulations, noting, “General theory should be separated from individual cases in discussions. It’s not good to keep moving in the direction of continuing to impose restrictions excessively.”

Hosomi pointed out that the convenience store industry is not covered by the Specified Skilled Worker (SSW) system, which the Japanese government established to accept foreign workers with certain expertise or skills in industries facing serious labor shortages. This system currently covers 16 industrial fields, including nursing care, construction, agriculture, and food service, but excludes retail convenience stores.

The SSW program, introduced in 2019, represented a significant shift in Japan’s traditionally restrictive immigration policy. It created two visa categories: SSW (i) for workers with considerable knowledge or experience in specified fields, valid for up to five years, and SSW (ii) for those with proficient skills, which allows for longer stays and family accompaniment. However, the exclusion of convenience retail from this system creates uncertainty for foreign workers and employers in this sector.

Hosomi emphasized the importance of addressing this gap, stating, “It is extremely important to resolve the shortage of workers, including by adding the convenience store category of retailing to the system.” This suggestion would provide a clearer pathway for foreign workers to remain in Japan legally while working in convenience stores, potentially reducing reliance on the student visa workaround.

The current situation creates precarious circumstances for many foreign workers in the convenience store sector. Students must balance work hours with academic requirements, and upon graduation, they often cannot continue working in stores where they have gained valuable experience because their college major may be unrelated to retail work. This forces both workers and employers to constantly recruit and train new personnel, reducing efficiency and creating instability in the workforce.

The Human Reality Behind the Statistics

Beyond the statistics and policy debates, real people are navigating life and work in Japan’s convenience stores. The day-to-day reality involves significant challenges, particularly for workers still learning Japanese language and cultural norms.

At a Lawson store in Tokyo’s Koto Ward, trainer Jiyu Chen works with foreign part-time workers, explaining the complexities of tasks that might seem straightforward to Japanese workers. Chen, a Chinese national who came to Japan 17 years ago as an international student, understands these challenges firsthand. He now trains approximately 50 part-time workers across four stores, 90 percent of whom are foreign nationals.

Two of his trainees, a 20-year-old from Nepal and a 19-year-old from Vietnam, face the daily challenge of communicating in Japanese while handling diverse tasks ranging from using microwave ovens to managing store lottery systems. Even simple transactions can become complicated, such as understanding customer responses like “iidesu,” which can mean either “yes” or “no” depending on context and intonation.

The Nepalese worker recounted an incident where she failed to provide a plastic bag to a customer because she misunderstood their response, resulting in being scolded. The Vietnamese worker noted that cashier duties are particularly difficult because input screens are not multilingual, requiring workers to memorize functions without visual aids in their native languages.

These language barriers create stress for both workers and customers. To address this, convenience store chains have implemented various solutions. Seven-Eleven has installed “pointing sheets” with illustrations at registers to facilitate non-verbal communication. Lawson introduced multilingual badges showing which languages staff can speak. FamilyMart adopted a virtual reality training system available in 19 languages to help workers learn procedures before facing customers.

Navigating Cultural Expectations in Japanese Service

Beyond language challenges, foreign workers must also navigate the distinct cultural expectations surrounding customer service in Japan. The concept of “omotenashi,” Japan’s unique approach to hospitality, can be unfamiliar to workers from other cultural backgrounds.

FamilyMart conducts online training programs specifically designed to teach foreign workers about Japanese service culture. Chinese and Vietnamese employees serve as instructors, explaining concepts such as bowing when greeting customers and holding items with both hands when handing them to customers. The training even includes instruction on how to smile appropriately for Japanese customers.

The Japanese cultural principle that “the customer is God” creates high expectations for service behavior. Foreign employees who do not naturally adhere to these expectations may face conflicts with customers who perceive them as disrespectful. These cultural misunderstandings can lead to stress for workers and may contribute to higher turnover rates.

Ayako Tsutsui, a manager at FamilyMart’s sales promotion department, explained the company’s perspective: “Convenience stores want to avoid conflicts between store staff and customers caused by cultural differences so that their employees will stay at their jobs as long as possible. Many foreign employees come to Japan with the dream of studying Japanese. I hope convenience stores can be a place for such people to actively participate in Japanese society.”

This approach reflects a recognition that convenience stores can serve as important entry points for foreign residents to engage with Japanese society. By providing supportive environments that acknowledge cultural differences while teaching necessary skills, these businesses can help facilitate integration and mutual understanding.

The composition of the foreign workforce in convenience stores has evolved over time. Ten years ago, Chinese and Vietnamese nationals were the largest groups at Seven-Eleven and Lawson. By 2024, Nepal had overtaken both countries to become the top nation of origin for workers at these chains. At FamilyMart, approximately 80 percent of foreign employees come from five countries: China, Vietnam, Nepal, Myanmar, and Bangladesh. This shifting demographic reflects changing migration patterns and the globalization of Japan’s labor market.

Japan’s Broader Immigration Policy Dilemma

The tensions highlighted by convenience store executives reflect Japan’s broader struggle with immigration policy. Japan has traditionally maintained restrictive immigration laws, accepting relatively few foreign workers and avoiding the term “immigration” due to its association with permanent residency. The basic policy framework has been to accept foreign workers only on the understanding that they will eventually return to their home countries.

This restrictive approach exists alongside an economic reality that increasingly depends on foreign labor. The number of foreign workers in Japan has quadrupled since 2007, reaching more than two million people in a country of 125 million. Despite this substantial increase, Japan’s reliance on foreign labor remains low by international standards at approximately 3.4 percent of the overall workforce.

International comparisons highlight Japan’s position. The ratio of job vacancies as a percentage of the labor force population stood at 3.2 percent in Japan in 2013, compared to 1.1 percent in Germany and 2.5 percent in the United States. In the service sector particularly, the labor shortage is acute, with ratios of more than three job openings for each waiter position and five for security guard roles in some periods.

The demographic pressures driving Japan’s labor shortage are severe and worsening. Japan’s birth rate dropped below the replacement level of 2.1 in the mid-1970s and now stands at approximately 1.4. Combined with the world’s longest life expectancy at 85.5 years, this creates a shrinking working-age population supporting a growing elderly population. The International Monetary Fund estimates that Japan’s medium-term potential growth rate is just 0.6 percent, partly due to reduced labor supply.

Projections indicate that non-citizens could constitute 10.8 percent of Japan’s population by 2070, with some experts believing this threshold will be reached sooner. During 2023, the increase in foreign residents was nearly double the government’s projection, suggesting Japan may reach 10 million foreign residents by the 2040s. These numbers indicate that Japan is becoming a country that cannot function without foreign labor, despite official policies designed to limit permanent settlement.

Political Divisions Emerge Over Foreign Worker Policy

The debate over foreign workers has become increasingly prominent in Japanese politics, emerging as a key issue in recent elections. Different political parties have adopted starkly different approaches to the question of accepting foreign workers.

Prime Minister Shigeru Ishiba has advocated for a moderate approach, stating, “Nothing will come from confrontation and division,” in apparent response to opposition parties calling for exclusionary policies. The ruling coalition has promoted acceptance of foreign workers in light of deepening labor shortages in service and other industries.

However, some opposition parties have adopted more restrictive stances, apparently seeking to attract voters frustrated by economic challenges. The Democratic Party for the People and Sanseito have called for tougher regulations on accepting foreign workers, arguing that priority should be given to helping Japanese young people enter the workforce.

Yuichiro Tamaki, leader of the Democratic Party for the People, stated, “What has to be done first is taking steps to help Japanese young people work more. [The government and the ruling parties] got the order wrong by accepting foreign workers simply because workforce is in short supply.” Sanseito leader Sohei Kamiya has advocated a “Japanese First” policy, stating that “appropriate acceptance is required” while expressing opposition to excessive acceptance of foreign nationals.

In contrast, Yoshihiko Noda, leader of the Constitutional Democratic Party of Japan, has criticized exclusionary approaches, calling for a multicultural society that respects minorities. “Foreign residents are critical to maintaining Japan’s economy,” Noda said, warning against division and conflict that could grow from exclusionist policies.

This political divide reflects broader tensions within Japanese society. While 98 percent of Japan’s business leaders support expanding acceptance of foreign workers according to a Nikkei survey, public opinion remains mixed. A 2020 telephone survey conducted by NHK found that 70 percent of respondents favored increased immigration, though this figure dropped to 57 percent when asked if immigrants should reside in their own neighborhood. Respondents expressed both anxieties about differences in language and culture and positive expectations about the introduction of new ideas and cultures.

International Context and Comparative Perspectives

Japan’s approach to foreign labor exists within a regional and global context. Other East Asian nations face similar demographic challenges and have developed their own approaches to managing migrant workers, though often with significant policy differences.

Taiwan, for example, has recently moved to expand fields open to migrant work while simultaneously cracking down on problematic “internship” programs that served as loopholes for de facto blue-collar labor arrangements. New regulations in Taiwan require that student work hours be limited to 50 percent of study time and that interns receive at least minimum wage. Taiwan has also proposed opening critical care hospital positions and bus driver roles to migrant workers, recognizing severe shortages in these sectors.

Taiwan currently has over 800,000 blue-collar migrant workers primarily from Indonesia, the Philippines, Thailand, and Vietnam. Unlike Japan, Taiwan faces public backlash when proposing to admit workers from new source countries, as seen when racist online reactions followed proposals to admit Indian workers. However, Taiwan also faces criticism for its 12-year maximum limit on migrant worker stays, with demonstrators calling for an end to this restriction.

These regional comparisons highlight that Japan is not alone in grappling with the tension between economic needs for foreign labor and social concerns about immigration. Each country has developed its own regulatory framework, often with complex systems of visas, work permits, and restrictions designed to balance competing interests.

Japan’s reliance on the student visa system for convenience store labor represents a distinctive approach that differs from the more direct guest worker programs used in some other countries. This approach allows Japan to benefit from foreign labor while maintaining the fiction that these workers are primarily students rather than labor migrants. However, as the executives’ comments indicate, business leaders recognize the limitations of this approach and advocate for more transparent and sustainable regulatory frameworks.

The regional competition for labor that Takemasu warned about is becoming increasingly real. Countries like South Korea, Australia, and European nations are also actively recruiting foreign workers to address their own demographic challenges. Japan’s ability to attract and retain workers in this competitive global market will depend significantly on the clarity and fairness of its immigration policies, as well as the willingness of Japanese society to welcome and integrate foreign residents.

The Economic Imperative for Sustainable Policy

Japan’s convenience store executives are not merely advocating for their own industry interests but highlighting a fundamental economic reality. The convenience store sector serves as a microcosm of broader challenges facing the Japanese economy, where labor shortages threaten to undermine productivity, economic growth, and the quality of life that Japanese citizens have come to expect.

The IMF has identified several policy solutions to Japan’s labor shortages, including moving toward more capital-intensive technologies, increasing wages to attract workers, increasing labor force participation among underrepresented demographic groups, and increasing the supply of foreign labor. While progress has been made in several areas, including increased female and elderly labor participation, the foreign labor solution has received less attention in policy debates despite its potential impact.

Current Japanese immigration measures, such as relaxing requirements for highly skilled workers and allowing foreign domestic helpers in Special Economic Zones, have been steps in the right direction but have limited impact on the most severely affected sectors like convenience retail. The IMF suggested that Japan could consider guest worker programs, loosening entry requirements in shortage sectors, and introducing uniform qualification frameworks for skill accreditation.

One concern often raised about expanding immigration is the fear that social costs will outweigh economic benefits. However, studies suggest that for temporary immigration, fiscal benefits would likely exceed costs for Japan. Furthermore, OECD opinion polls indicate that Japanese attitudes toward immigration are broadly in line with those in other OECD countries, suggesting that obstacles to introducing temporary worker programs may be surmountable with proper policy design and public communication.

The convenience store leaders’ statements emphasize that the current system is already functioning effectively in many respects, with foreign workers making valuable contributions to Japanese society and the economy. Rather than focusing exclusively on tightening restrictions, they advocate for a more nuanced approach that recognizes the benefits foreign workers bring while addressing legitimate concerns.

Ito’s message to the Japanese government encapsulates this perspective: “Excluding such people is no good. I would like them to consider how Japanese society can coexist with foreigners.” This call for coexistence rather than exclusion reflects a recognition that Japan’s future prosperity and social sustainability depend on finding ways to integrate foreign residents successfully into Japanese society.

The Bottom Line

• Japan’s three major convenience store chains employ 110,000 foreign workers, up from 80,000 in May 2024
• International students make up a significant portion of this workforce, permitted to work up to 28 hours weekly under special permission
• Industry executives from Seven-Eleven, Lawson, and FamilyMart have publicly cautioned against tightening foreign worker regulations
• The convenience store industry is not covered by Japan’s Specified Skilled Worker system, creating regulatory uncertainty
• Japan faces severe demographic challenges with a birth rate of 1.4 and the world’s longest life expectancy at 85.5 years
• Foreign workers in Japan number more than two million, quadrupling since 2007 but still representing only 3.4 percent of the workforce
• Cultural and language barriers create significant challenges for foreign workers in convenience stores
• Nepal has surpassed China and Vietnam as the top country of origin for convenience store workers at some chains
• Political divisions exist over foreign worker policy, with 98 percent of business leaders supporting expanded acceptance
• Projections suggest non-citizens could constitute 10.8 percent of Japan’s population by 2070