Seven & i Holdings Co. Ltd. plans to introduce changes to its convenience store business in Japan after its insistence on maintaining 24-hour operations amid a labor shortage in the country caused concern among franchisees, the Nikkei Asian Review reported May 23.

Seven & i President Ryuichi Isaka reportedly apologized for this at the company's shareholder meeting and said they will reconstruct their business model by limiting store openings.

Seven-Eleven Japan Co. Ltd., the retail group's local convenience store arm, previously said it would open 150 stores for the year through February 2020, marking its slowest expansion in 40 years, the report said. It has also tested shorter hours at a number of stores and is allowing stores to offer discounts on unsold food in a bid to reduce waste.

The development comes the same day an association of 7-Eleven store owners in the U.S. said they are calling on lawmakers to strengthen federal oversight of franchising in the country.