Boss in his 20s, part-time worker in his 60s… What’s happening to convenience stores these days?

Boss in his 20s, ‘part-time worker’ in his 60s.

The convenience store landscape is changing. This is due to the increase in the number of people in their 20s starting their own business right after graduating from school due to the cold wave of employment, and the number of older people who want jobs even after their 60s has increased.

According to GS Retail on the 17th, the proportion of new convenience store GS25 franchise owners this year reached 19.1% in the first to third quarters. If the current trend continues, the proportion of new franchise owners in their 20s is expected to exceed 20% on an annual basis for the first time in history. This means that the owner of one of the five newly opened convenience stores is in his 20s. The proportion of people in their 20s among new franchise owners was only 12.9% in 2020, but it exceeded 15% last year and is continuing to rise. The proportion of ‘current’ convenience store owners in their 20s also rose from 12.8% in 2020 to 14.9% in the third quarter of this year.

The increase in CEOs in their 20s is a phenomenon equally observed in major convenience stores. Among BGF Retail’s convenience store CU new franchise owners, the proportion of people in their 20s more than doubled from 7.4% in 2020 to 16.4% from January to October this year. The proportion of new 7-Eleven store owners in their 20s also rose from 11.6% in 2021 to 15.5% in the first to third quarters of this year.

The increase in young convenience store owners is related to the cold wave in the job market. According to Statistics Korea’s October employment trends, the number of employed young people (ages 15 to 29) last month decreased by 82,000 compared to the same month last year. It is interpreted that convenience stores, which can be started with relatively small capital, are attracting attention as the number of jobs for young people is decreasing. In the case of GS25, a store can be opened with a minimum investment of 22.7 million won. Another aspect that reduces the risk of starting a business is that when the business is terminated due to expiration of the contract period, most of the investment, excluding the franchise fee, can be returned.

Mr. Oh (29), who runs a GS25 store in Guri City, said, “I decided to open a convenience store considering the cost of starting a business, profits, and ease of operation.” Mr. Du (28), who runs the CU Dongbu Daechi branch, said, “I started a convenience store to take the lead in making money as much as I put in.” He added, “My current income is satisfactory compared to my peers, so I am interested in starting a convenience store.” “I am also recommending it to my friends.”

In contrast to the growing number of young ‘bosses’, the number of senior part-time workers is also increasing. Since opening its first senior store in Busan in 2018, GS25 is currently operating about 50 senior stores across the country. Senior stores are stores operated by senior clubs in each region and supported by the convenience store headquarters. About 10 senior workers per store and 500 nationwide are working at GS25 Senior Store. GS25 waives the franchise fee of 7.7 million won and the minimum deposit of 20 million won when opening a senior store.

In addition, the number of CU senior staff training graduates increased from 26 in 2008 to 919 in 2019, and the number of elderly workers in convenience stores is increasing, with E-Mart 24 opening the Sunchang Senior Store convenience store last month. Franchise owners can also receive up to 5.2 million won in labor costs for 36 months through government agencies if they hire senior staff who have completed training, which has the effect of reducing costs.