Convenience stores are a hit with foreigners—many are amazed at just how handy they are. The option to enjoy your meal right there in the store is a big bonus too. Yet, what many don’t realize is that these dining areas come with their own set of rules. While some are common sense, others can be tricky for first-timers. Lately, some foreign tourists have been missing the mark – mostly because one of the key rules is confusing, even for Japanese citizens and residents.
Rising discontent
We’ve all noticed it—Japan is overflowing with tourists lately. In June 2024 alone, the Japan National Tourism Organization reported a record-breaking 3,135,600 visitors. This is great news for both local and national economies, but it also brings challenges. Some of these stem from different systems, language barriers, and cultural differences.
We’ve dealt with over-tourism issues before. However, a new concern is cropping up – this time from convenience store clerks.
Eat-in spaces in combinis have been popular since they first showed up. Foreign tourists are getting into them, too. However, some staff have noticed that some visitors aren’t quite following the rules, leading to a few issues.
A combini clerk in their 20s from Tokyo noted that one big hassle is the tax rate difference. In Japan, takeout food is taxed at 8%, while the tax for dining in jumps to 10%. This can trip up tourists who aren’t familiar with the system. Clerks often see foreign visitors not mentioning they’re eating in but still using the space after paying the lower 8% tax.
But tax issues aren’t the only complaints cropping up. There are reports of people sitting on tables or floors, 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, but they seem to be isolated cases. They don’t represent how all foreign visitors act in dine-in spaces. Plus, such behavior would be considered rude anywhere—so it’s not just about tourists catching on to the system.
What could use more focus is the tax confusion. This issue has come up repeatedly, causing headaches for everyone involved. And while some might be trying to game the system, there’s likely genuine confusion over how things work.
A quick bite inside
As mentioned earlier, dining spaces are a recent 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 aiming to set itself apart by offering a fresh take on the combini experience with in-store dining.
Ministop, founded in 1980, was ahead of the curve with built-in eat-in spaces and kitchens from day one. This feature quickly became popular, offering a cozy spot to grab a quick bite away from the outdoor hustle. It was a clever move that encouraged customers to stick around longer, make extra purchases, and come back for more.
The success of this model quickly caught the eye of the big three, prompting them to add dining features to their combini. By 2016, the trend was in full swing, with FamilyMart setting a goal to have 6,000 eat-in spots by the end of the 2017 fiscal year. These spaces became popular with certain customers at key times—like employees stopping in for a quick breakfast before work or holding a brief meeting before heading home.
The warm reception of this idea led to a swift spread of eat-in spaces at combini. But it didn’t take long for the food industry to feel the squeeze. Local coffee shops, for example, are struggling as combini offer fresh coffee and comfy spots to enjoy it.
The rise of eat-in spaces at convenience stores has shaken up consumer habits ever since. After all, who wouldn’t prefer cheaper options with similar service and amenities? This trend has quickly caught on, with inbound visitors also seeing the appeal of these convenient spots.
Tax trickery
The new tax system didn’t line up with the launch of eat-in spaces. The tax changes, which set a 10% rate for dining in and 8% for takeout, kicked in a few years later in October 2019. Adapting to this new setup wasn’t an easy task for many stores.
The confusion around this tax has been a problem from the start, not just for recent foreign tourists. Since 2019, many customers have been buying items at takeout prices and then eating inside. Dubbed “eat-in tax evasion,” this issue has sparked lively online debates and calls for stores to tackle it more effectively.
“Eight to nine out of ten customers buy at takeout prices and use the eat-in space without saying a word. We have no choice but to silently tolerate it,” lamented Yusuke Tsuneda, a Nakano combini owner, back in 2019.
Once this trend took off, it riled up customers who were paying the additional tax correctly. The pressure on stores ramped up, with one combini in Ibaraki even having to shut its dining space for three days due to persistent tax evasion. But while some were definitely trying to cheat the system, others were just genuinely confused about the new rules.
Just think about it: the tax rate is set at checkout based on what customers say. To make things easier for staff, big convenience stores don’t directly ask if the purchase is for eating in or taking out. Instead, they use signs asking customers to declare their choice.
With that in mind, if Japanese customers have found the system confusing, foreign tourists are likely even more puzzled. The tax reduction system was rolled out at the end of 2019, right before three years of COVID-19 travel restrictions. So even repeat visitors might not be familiar with it. On top of that, if clerks don’t ask directly at checkout, tourists might miss the Japanese signs explaining the tax rates.
Adding to the confusion
Even with the term “eat-in tax evasion” making the rounds, customers aren’t technically evading taxes if they fail to mention they’re dining in. Lawyer Saori Sugawara puts it this way:
“Stores are responsible for paying the tax to the government, not the customers. Since the system relies on what people declare, it should have anticipated this kind of confusion.”
That doesn’t mean stores and their staff will face legal repercussions for this issue. However, they do have a responsibility—though not legally binding—to confirm with customers about their dining intentions. If they don’t, the risk of tax evasion—whether intentional or not—goes up.
A 2018 investigation by Tax Accountant.com found that out of 50 stores, only one actually checked customers’ dining intentions at checkout. Additionally, just 25 stores correctly applied the 10% tax for eat-in customers, indicating a poor integration of the procedure among staff.
As noted, stores and clerks won’t be punished 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 new to the rules and may have trouble with language barriers and tax-related signs.
Meeting halfway
Japanese combini are a favorite for their great prices, convenience, and variety, making them especially appealing to international visitors. The chance to grab a quick meal and enjoy it on-site before heading out to explore is a major perk.
Combini eat-in spaces are particularly popular for this reason, but they come with their own special rules. Some are straightforward, while others might be confusing for newcomers. Although some behaviors can seem disrespectful, not all cases of “rule-breaking” are intentional.
Stores can make a big difference by helping foreign tourists understand the rules. This way, they can avoid awkward situations and ensure that those who genuinely don’t know the system aren’t unfairly labeled as inconsiderate.
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Sources
訪日外国人でコンビニイートインが大混乱 「テーブルの上でオムツ交換」「軽減税率がわかってもらえない」店員たちが明かす笑えないトラブル Newspic
ミニストップが創業40周年 実は先進的だったその歩みを振り返る Yahoo Japan News
店内で飲食できる！イートインスペースについて大調査！【1000人アンケート】 PR Times
「イートイン脱税」混乱 店は申告頼り スペース撤去、コップで区別 東京新聞
「イートイン脱税」したくないのに…「中で食べる」と告げても店員の半数が8％処理 コンビニ50店調査 税理士ドットコム
コンビニ各社がイートインの拡大で飲食需要を開拓 近隣のコーヒーショップやファーストフードの顧客奪う 産経新聞
