Japan's restaurant industry is experiencing the biggest wave of closures in 10 years.
According to the survey, from January to November this year, the number of restaurant closures in Japan has reached 908, an increase of 11.0% over the same period last year, than the number of closures in 2023 the whole year 15 more.
Analysis pointed out that although the epidemic after the strong recovery of Japan's tourism industry, but by high inflation, rising prices, labor shortages and many other social factors, the restaurant industry is inevitable depression.
According to the report, the number of bankruptcies of specialty restaurants such as ramen stores and barbecue restaurants was the highest in the entire restaurant industry, reaching 224, an increase of 10.8% from the same period last year. On the other hand, the number of bars, cabarets and nightclubs that went out of business amounted to 80, a 66.6% increase from the same period last year, making it the largest increase in the number of bankruptcies in Japan's food and beverage industry. In addition, 27 sushi stores and 17 soba and udon noodle stores went bankrupt.
Izakaya, which has long been favored by customers, was not free from the closure trend either. 203 Izakaya closed between January and November of this year, up from 189 during the 2020 epidemic, according to a survey released on September 9. In fiscal year 2023, 40% of Izakaya operators in Japan will be in the red.
The number of corporate bankruptcies in Japan as a whole, excluding the food and beverage industry, has increased for three consecutive years. From January to November this year, the total number of bankruptcies in Japan reached 9,164, surpassing the 8,690 for the whole of the 2023 year. In November of this year alone, there were 140 store closures in Tokyo and 127 in Osaka.
High prices and labor shortages have hit Japan's small enterprises, and the Bank of Japan's further interest rate hike in July this year, adding to the woes of small businesses.
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