Convenience stores are a hit with foreigners – many are amazed at how convenient they are. Being able to enjoy your food right in the store is also a huge perk. What many don’t know, however, is that these eating areas have their own rules. While some of these are self-evident, others can be tricky for newbies. Recently, some foreign tourists have been missing the mark – mainly because one of the most important rules is confusing even to Japanese citizens and residents.
Increasing dissatisfaction
We’ve all noticed it – Japan has been flooding with tourists lately. In June 2024 alone, the Japan Tourism Organization reported a record-breaking 3,135,600 visitors. This is great news for the local and national economy, but it also brings challenges. Some of these are due to different systems, language barriers, and cultural differences.
We have had to deal with the problem of overtourism before, but now a new concern is emerging – this time from the sales staff in the supermarkets.
Dining areas in Combinis have been popular since their introduction. Foreign tourists also come there. However, some staff have noticed that some visitors do not fully follow the rules, which leads to some problems.
A 20-something combini seller from Tokyo noted that the difference in tax rates is a major annoyance. In Japan, takeaway food is taxed at 8%, while the tax for dining in rises to 10%. This can trip up tourists who are unfamiliar with the system. Sellers often find that foreign visitors do not mention that they are eating in the restaurant, but use the space anyway after paying the lower 8% tax.
But it’s not just about tax issues. There are reports of people sitting on tables or the floor, playing loud music or bringing their own food and drinks. One woman even saw a foreign customer trying to change a baby’s diaper on a table.
While these issues are worth discussing, they seem to be isolated cases. They are not representative of the behavior of all foreign visitors in dining rooms. Moreover, such behavior would be considered rude anywhere – so it is not just tourists who are playing the system.
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What deserves more attention is tax confusion. This issue has cropped up repeatedly and caused headaches for everyone involved. And while some may be trying to game the system, there is likely genuine confusion about how things work.
A quick bite inside
As mentioned, dining rooms are a new addition to Japanese combini. Surprisingly, it wasn’t one of the “big three” – Lawson, Family Mart or Seven-Eleven – that introduced them. Instead, it was a new chain that wanted to differentiate itself by offering a new twist on the combini experience with in-store dining.
Established in 1980, Ministop was ahead of its time from day one with its integrated dining areas and kitchens. This feature quickly became popular, providing a cozy place to grab a quick bite to eat away from the hustle and bustle of the outdoors. It was a smart move that encouraged customers to stay longer, make additional purchases and come back.
The success of this model quickly caught the attention of the big three and prompted them to add food and drink outlets to their combini. By 2016, the trend was in full swing and FamilyMart set a goal of having 6,000 food and drink outlets by the end of fiscal 2017. These areas were popular with certain customers at certain times – for example, employees stopping by for a quick breakfast before work or having a quick meeting before heading home.
The positive response to this idea led to a rapid proliferation of combini dining areas. But soon the food industry felt the pressure. Local cafes, for example, are struggling because combini offers fresh coffee and cozy places to enjoy it.
The rise of dining areas in convenience stores has since shaken up consumer habits. After all, who wouldn’t prefer cheaper alternatives with similar service and amenities? This trend has quickly caught on, and visitors who come to us also recognize the appeal of these convenient areas.
Tax dodge
The new tax system did not suit the introduction of eateries. The tax changes, which introduced a rate of 10% for dine-in and 8% for take-away, came into force a few years later in October 2019. Adapting to this new system was not an easy task for many businesses.
Confusion around this tax has been a problem from the start, and not just for foreign tourists. Since 2019, many customers have been buying their goods at take-away prices and then eating them in-store. This problem, dubbed “tax evasion when eating out,” has sparked lively debate online and calls for stores to tackle it more effectively.
“Eight to nine out of ten customers buy take-away and use the dining area without saying a word. We have no choice but to tolerate this silently,” complained Yusuke Tsuneda, owner of a Nakano Combini, back in 2019.
As this trend caught on, it angered customers who correctly paid the extra tax. Pressure on stores increased, and one Combini in Ibaraki even had to close its dining room for three days due to repeated tax evasion. But while some were definitely trying to cheat the system, others were just really confused by the new rules.
Just imagine: The tax rate is set at the checkout based on the customer’s information. To make things easier for staff, large convenience stores do not ask directly whether the purchase is for consumption on site or for take-away. Instead, they use signs on which customers must indicate their choice.
If Japanese customers find the system confusing, foreign tourists are likely to be even more confused. The tax reduction system was introduced in late 2019, just before three years of COVID-19 travel restrictions, so even returning visitors may not be familiar with it. In addition, tourists may miss the Japanese signs explaining tax rates if cashiers don’t ask directly at the checkout.
The confusion is further increased
Although the term “tax evasion by eating out” is being bandied about, customers are not technically evading taxes if they don’t mention that they are eating out. Attorney Saori Sugawara puts it this way:
“Shops are responsible for paying the tax to the state, not customers. Since the system is based on people’s declarations, it should have foreseen this kind of confusion.”
This does not mean that shops and their employees face legal consequences for this problem. However, they have a duty – although not legally binding – to inform customers of their dining intentions. Failure to do so increases the risk of tax evasion – whether intentional or not.
A 2018 study by Tax Accountant.com found that only one in 50 stores actually verified customers’ dining intentions at checkout. In addition, only 25 stores correctly collected the 10 percent tax for customers dining in, suggesting that the process is poorly integrated among staff.
As mentioned, stores and sellers are not penalized for not doing their part. The responsibility ultimately lies with the buyer. However, businesses play a crucial role, especially when it comes to helping customers who are unfamiliar with the rules and may struggle with language barriers and tax-related advice.
Meeting halfway
Japanese combini are popular for their great prices, convenience and variety, making them particularly attractive to international visitors. The ability to grab a quick meal and enjoy it on site before heading out exploring is a huge advantage.
For this reason, combini dining areas are particularly popular, but they come with their own rules. Some are straightforward, while others can be confusing for newbies. Although some behavior may seem disrespectful, not all cases of “rule breaking” are intentional.
Shops can go a long way in helping foreign tourists understand the rules, helping to avoid embarrassing situations and ensuring that those who really don’t know the system aren’t unfairly labelled as inconsiderate.
Sources
訪日外国人でコンビニイートインが大混乱Current Newspic
Yahoo Japan News
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