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Restaurant bankruptcies to hit all-time high in 2020

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Very sad. Unfortunately Japan is particular unkind to people who are bankrupt.

Lamentably, the best sites will be snapped up by bland chains run by accountants, not chefs.

14 ( +16 / -2 )

Rising wages due to Japan's labor shortage means that the number of bankruptcies has remained at 700 or over since 2017.

Last sentence of the article trying to blame rising wages for the tsunami of bankruptcies! What disingenuous misdirection. First, the amount of wages rising for restaurant workers, if any, is meager as anyone can see.

Second, government mishandling of the pandemic response, subsidies that mainly benefit the large companies, and insufficient relief to cope with the pandemic restrictions might have more to do with bankruptcies don't you think?

16 ( +17 / -1 )

It is possible that the "bland chains" are making sure the LDP does not give a helping hand to the many smaller (and much more interesting and diverse) eateries going out of business. They want that property. Starbucks showed the way.

7 ( +7 / -0 )

I do respect Japanese for preparing, cooking and serving customers very heartily. This I don't feel in other countries. However, what I don't like about them is I have to say 'Oishi' until they don't stop staring even though i don't like the food. I hope this Japanese dining mentality will change.

-8 ( +4 / -12 )

A good sign that things will get professional.

-9 ( +1 / -10 )

Not surprising really, heaps of people fell for the lies of the media and governments, sacrificing businesses and jobs in the process, all just for a virus that for won't cause symptoms to most people.

-4 ( +9 / -13 )

Not surprised at all. I'm curious what people who are calling for a second lockdown or more restriction will say now.

Stick your noses from your schools and offices and face the people who will lose or lost their only source of income.

I know, as long as You have your job it's all fine, we don't need to think about the service industry.

Corona or not I always try to support local restaurants and businesses.

0 ( +8 / -8 )

It was inevitable with little government support during a viral pandemic. Tell me again how Japan is such a rich country.

8 ( +9 / -1 )

For the bigger picture, overall bankruptcies in Japan declined by 9.4% this year to the lowest level since 1990.

https://www.google.com/amp/s/www.bloomberg.com/amp/news/articles/2020-10-08/bankruptcies-in-japan-fall-to-three-decade-low-amid-stimulus

Restaurant bankruptcies in Japan rose by 10% from the year before, and that is really bad. But 85% of restaurants in downtown San Francisco are also closed now. The restaurant industry in the US is a ghost town with massive layoffs - we are talking about millions of people.

Why the big difference? One reason is government economic response - Japan has had three COVID stimulus packages, and the US still can’t agree on a second one.

6 ( +7 / -1 )

Not news at all when you consider that restaurants have been and continue to be severely hit all over the world due to Covid.

4 ( +5 / -1 )

Going into any type of business involves risks and the restaurant business is one of the more riskier businesses to go into even in good times. I mean, farmers deal with this every year depending on how the weather plays out yet we don't see a "go to farmer" campaign, a "go to fisherman" campaign, etc. If you opened a restaurant, took out big loans, etc, I feel for you but your timing was simply bad luck, those are the breaks when you do business - that's life. The rest of the public should not be encouraged to risk serious illness so these business can survive, but of course that's exactly what the Japanese government has been doing!

4 ( +7 / -3 )

@ Kevin .How with proper social distancing in restaurants and ample hand sanitizing / plastic glove wearing @ a buffet is that risking serious illness ?Support local restaurants and businesses but take precautions.

Don't get too paranoid.

0 ( +4 / -4 )

Im some way i see that is bad for those running a buisness but then I see a huge merrit to this! Its call the wife will start cooking again to feed the family and the average salary man will go home to the falimy instead of kabare and eat healthy food the wife cooks.

-1 ( +5 / -6 )

Ok, let me show you the bigger picture.

The government is not doing GO TO EAT or TRAVEL just to keep afloat businesses. We are doing it to keep the INDUSTRY alive. You have to understand that if you kill the Food and Service Industry there won't be anyone who will do it in the future.

People who will lose jobs in the Food and Beverage will most likely never return as they will find it unstable. There will be a labor shortage again and low immigration will push the prices up. We will end up with fewer restaurants and even higher prices.

Not to mention that some of that 1DK that many young people live in don't have a proper kitchen and rely on local restaurants. Same with hotels, ryokans etc.

The same thing happened with the farming industry (agriculture). We don't have hands to work, we bring trainees to Japan from Vietnam and China that works almost for free. Japanese Food Self Sufficiency stands at 40%, compared to almost 80% in 1960.

Now if something happens and we won't be able to import food from overseas you will see people fighting for food.

It's going to get worse as global warming will cause serious problems to crops. Why do you think NY stock exchange suddenly listed WATER as a commodity to trade next to gold and oil?

I'm expecting food prices to rise within the next 5 years. Mark my words.

5 ( +6 / -1 )

Lots of towns had "shutter gai", rows of shops all shuttered up, especially in shopping arcades, before this happened. Covid-19 has made things worse of course and brought more closures, but the numbers are still not that high for a country of 130 million inhabitants and a once-in-one-hundred-years pandemic that has shut the doors to forty million tourists.

It's sad for the people concerned, especially if they are good cooks and good hosts, and I hope they can bounce back when we are through this. With the vaccines, the end is at least coming into sight.

0 ( +1 / -1 )

@Larr Flint

spot on mate. I’ve had angry words at many a person who is probably sitting at home on their comfy lounges sipping craft beers & calling for another lockdown,

all the while collecting their nice paychecks

-3 ( +4 / -7 )

Sad news, but the resilience rate in culinary industry is relatively high and fast. Bunker down, try to survive damages by focusing on delivery & takeaway menu (I'm willing to cooperate as a customer).

4 ( +5 / -1 )

Even zero interest rate loans will have to be paid back in the end. Small eateries would rather choose to close down than keep operating and run up more debt.

2 ( +2 / -0 )

The real restaurant closures are at least 10x the bankruptcy numbers as most prefer too close and not declare bankruptcy but even this is only the beginning.

too many reasons, from COVID, no tourists, declining population, shrinking bonuses, but also dirty kitchens, bad or no management, bad service sometimes, high taxes, no rent reductions, and just plainly too many restaurants.

4 ( +4 / -0 )

I feel sorry for the hospitality industry but on the flip side, my culinary skills have improved out of sight.

-1 ( +0 / -1 )

@tara tan kitaoka i with full heart agree to your statement. i believe many small old style "izakaya" will start to turn to more solid Uniform business models in the future.

-2 ( +1 / -3 )

Yes the government knows that covid isn't that bad and the Go To campaigns are to avoid crippling damage to the economy. If you don't want to use them then sit on your hands at home until the world ends but don't stop the rest of us being sensible humans with responsibility for our own lives. I honestly don't understand why some people scream at other people just being outside, it's not the plague come on have some perspective

-5 ( +1 / -6 )

everywhere,Everything has changed and still is changing. Japan too has to change.

Even World is changing,Climate is changing and etc.Nothing is thesame all the time.

The Way We eat will change as well. !!Get ready for changes!! Brace for it

1 ( +1 / -0 )

Japan and change ..you must be relatively new here Andy

0 ( +0 / -0 )

Rising wages due to Japan's labor shortage means that the number of bankruptcies has remained at 700 or over since 2017.

Another way of expressing this is to say that restaurants that aimed to exploit their workers have had a hard time surviving since 2017.

1 ( +1 / -0 )

@TARA TAN KITAOKADec. 12  06:29 pm JST

A good sign that things will get professional.

please elaborate as I can’t fathom your comment, seems like a short cut to thinking.

Thanks

0 ( +0 / -0 )

@wobotDec. 13  01:59 am JST

Yes the government knows that covid isn't that bad and the Go To campaigns are to avoid crippling damage to the economy. If you don't want to use them then sit on your hands at home until the world ends but don't stop the rest of us being sensible humans with responsibility for our own lives. I honestly don't understand why some people scream at other people just being outside, it's not the plague come on have some perspective.

touch wood mate your tempting fate!

0 ( +0 / -0 )

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