Photo/Illutration Seven-Eleven Japan resumes operations on May 4 at a temporary outlet, foreground, while the old outlet is surrounded by a fence. (Toyokazu Kosugi)

HIGASHI-OSAKA, Osaka Prefecture--A leading convenience store chain locked in an escalating dispute with a former franchise owner who dared to challenge its around-the-clock business model has upped the ante again.

Mitoshi Matsumoto incurred the wrath of Seven-Eleven Japan Co. and made national headlines in February 2019 when he decided to close his Seven-Eleven outlet here during the graveyard shift because he couldn’t find people to work those hours.

In doing so, he went against the company's long-held business practice of staying open all hours. This led to a legal battle with both sides filing lawsuits seeking compensation.

Determined to put Matsumoto in his place, Seven-Eleven Japan headquarters on May 4 began operating a temporary outlet in what used to be the parking lot for Matsumoto’s franchise.

A large fence has been erected around the old outlet located just behind the temporary one.

Seven-Eleven Japan in late 2019 annulled its franchise contract with Matsumoto.

He responded with a lawsuit in Osaka District Court seeking compensation and an invalidation of the contract annulment. Seven-Eleven Japan filed its own lawsuit seeking compensation as well as the return of the convenience store outlet.

The former outlet has not been in business since Jan. 9, 2020, because company headquarters refused to supply products to Matsumoto.

Seven-Eleven Japan officials said the decision to open a temporary outlet was in response to calls by local residents for some form of business to resume because they needed somewhere to shop, and also as a way of preventing crime in the area.

That led to the construction of the temporary outlet and resumption of operations from 7 a.m. on May 4. Company officials said they would continue with operations until a court verdict was reached.

The approximately 30 million yen ($275,000) needed to construct the temporary structure will be tacked on to the compensation lawsuit against Matsumoto, company officials said.

Matsumoto said he would not contest the temporary outlet in court and concentrate on gaining an invalidation of his contract annulment.

“The construction of the temporary outlet is not for the benefit of the local community, but is intended, I believe, to conceal the legal battle,” Matsumoto said May 4 when he met with reporters outside his old outlet. “We will continue to concentrate on the court case.”

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