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Record number of Japan ramen eateries went bankrupt in 2024

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Also hit by climbing personnel expenses due to labor shortages

Is not about labor shortage, is all about that business establishment unwilling to give increase wages to their employee or part timer.

-26 ( +14 / -40 )

Prices are going up but people’s pay isn’t. That’s the problem.

10 ( +41 / -31 )

raise prices amid soaring ingredient and utility costs.

What JGovt has done about it?

-21 ( +16 / -37 )

1000 JPY aprox 5.16 GBP...

London December, a posh Burger Chips 24.50 GBP/4,721.02 JPY

Big bowl Ramen at my local is 760 JPY.

2 ( +14 / -12 )

Considering there is a ramen shop on every corner and three more in between and the cost of living increasing with no salary increases for decades it should be no surprise that many small businesses are failing.

5 ( +30 / -25 )

ramen noodle eatery operators

Ah Kyodo, you always bring a smile to my face with your writings. How about just "ramen shops"?

Anyway, Japanese people need to get out of their deflationary mindset. It's wishful thinking that prices will always be the same or even go down from here on out. Inflation is actually a good thing in the long run.

-19 ( +7 / -26 )

I'm surprised the article does not mention the fact that people are choosing to eat less unhealthy food compared to the past. Ramen typically has a big amount of sodium. Alcohol consumption is also down everywhere, also partially for health reasons.

Plus, I'd imagine the elderly eat less ramen than when they were young?

12 ( +25 / -13 )

Sad news. No doubt many hard-working couples who have been operating ramen shops for decades and know no other way of making a living.

17 ( +21 / -4 )

remember the old japanese investment shows, later copied by shark tank et al?

every other business plan was a new ramen shop and the judges had to taste them constantly. haha.

if your pricing is in the middle, you're the most vulnerable. you have choose high or low. shrinkflation may be better than cheaper ingredients or cutting corners.

this is funny. there's a chinese takeout place near me that buys frozen dinners and appetizers from costco in bulk and makes everything in microwaves lined up in the back and puts it in cardboard containers.

the only thing they make is a big pot of cheap rice. most customers don't even know it. :)

6 ( +12 / -6 )

The ramen price barrier is ¥1,000 but some places now charge ¥1,500 not a price some want to pay.

20 ( +22 / -2 )

I’m so glad Fukuoka doesn’t have this problem on that scale like they do up north, the industry is thriving and thriving hard. But you just can’t beat Hakata tonkotsu ramen.

-11 ( +12 / -23 )

1000 JPY aprox 5.16 GBP...

London December, a posh Burger Chips 24.50 GBP/4,721.02 JPY

Big bowl Ramen at my local is 760 JPY.

Average salary in London (no refinements, just asked Google)

£47,455, some 9 million yen

7 ( +16 / -9 )

It's not just the ingredients, energy costs are also way up. The higher cost mostly reflects the weak yen.

16 ( +19 / -3 )

But yeah, prices have gone up around a 30% on everything, but salaries are about the same. You can notice that people is concerned and don't have an extra for eating out, even ramen.

10 ( +18 / -8 )

But with 2024 ingredient costs as of October up by an average of over 10 percent from 2022, businesses face having to bring prices closer to 1,000 yen. Though low compared with many dining options, crossing that line is seen as a blow to ramen's everyman image that could drive away diners.

This is the part that is difficult to understand, people happily pay well over 1000 yen for other kind of food (lunch sets, pasta, etc.) but ramen is seen as something that must be cheap no matter what, the big amount of ramen shops mean it has also to be really good to remain competitive so the situation has no solution. For other food options people can understand they will have to choose between "cheap but lower quality" and "really good but paying more" but strangely this never applies to ramen.

2 ( +12 / -10 )

There are too many ramen shops in Tokyo. The cream always rises to the top, but the good ones will always be there.

4 ( +9 / -5 )

Since inflation rice is on the uptake. More people eating rice less eating noodles. So I assume with what fighto suggested and rice a healthier option is the main reason. I don't think more people are eating at home, I think they looking at filling their bellies a cheaper way. compare the 800 yen ramen to a 650 yen gyudon and rice set or a kare and rice set. I suggest you get more distance out of the gyudon / kare and rice set for less money.

-2 ( +5 / -7 )

Japan has been lucky to have years without any real inflation. Now it is here, it will be brutal.

Convenience stores and supermarkets can undercut the ramen stores. That is tough competition when money is tight. All the tradition in the world can't buck the basics: Price = Costs + Profit. With inflation, prices go up or they go bust. Especially in catering, when prices are low, margins thin, and sales limited by seating capacity. If people won't pay, they will have to close.

When Sterling dived, products started to vanish from the shelves, and then companies started to vanish too. Your local shōtengai may have some empty shops soon. Japanese retail will become increasingly reliant on the tourists that so many on here don't seem to like very much. Inflation is toxic.

6 ( +10 / -4 )

Rise the prices a little, problem solved..

-14 ( +2 / -16 )

Considering there is a ramen shop on every corner and three more in between and the cost of living increasing with no salary increases for decades it should be no surprise that many small businesses are failing.

What a load of drama..

-16 ( +2 / -18 )

An organic phenomenon. Obviously, there were too many. The market dictates necessity.

-3 ( +5 / -8 )

How old are you, 99??..

LOOOOOL

I may be a rarity, but even in middle age I eat less ramen (and other less healthy foods) than when I was in my 20s.

With 50 being the average age for a Japanese person, my guess is many are choosing to eat less ramen than when they were younger. And no doubt the cost crunch is a reality, too.

5 ( +11 / -6 )

IMO, you have a generation of small business owners that has never had to deal with inflation and the impact on their businesses. They aren't really prepared for the shift. I know two small places and one is absolutely not charging enough and I worry about the guy. I don't want to pay more, sure, but I certainly would. This guy is charging 1990s prices. The other guy finally raised his prices and is doing well now but it took a lot of convincing. No website, no idea of where his customers were coming from. Absolutely hated the idea of a price increase. A friend had to show him all of these fundamentals.

4 ( +8 / -4 )

No mention of how the ramen chain stores are fairing.

Korakuen et el have raised their prices and seem to be rather well patronized.

I have a feeling that the photograph illustrates a truth.

If you are small, you simply cannot sell enough (ramen or widgets) to make it nowadays.

Even with raised prices!

Gary

1 ( +4 / -3 )

isinlyrocknroll - you’re not taking into consideration what everyone else here is - the difference between UK wages and Japanese

0 ( +6 / -6 )

Restaurants is a hard business. Its also probably also easier for new fancy pants ramen, or a corporate ramen with accountants calculating costs to the single noodle, to charge high prices than a been-there-forever-in-the-neighbourhood place.

the average price of a bowl of ramen is still under 700 yen

The average can only be that low due to places like Sugakiya in food courts, whose ramen is little better than an instant one made with a packet. I was gutted last year to see Nissin stop making their posh version of Rao packet noodles ("gokuraku Rao") last year. The miso one was killer.

1 ( +4 / -3 )

It’s because they don’t charge enough.

-11 ( +2 / -13 )

Zero surprises

-1 ( +6 / -7 )

Despite rising costs, the average price of a bowl of ramen is still under 700 yen

Where are these places? All I have seen is 900円+ even in the boonies. There are much cheaper options out there to take a family than a ramen restaurant.

2 ( +5 / -3 )

Near me in the UK was a run down pub, it was horrible, chips and nuggets chips and ? It stunk of vinegar and beer and cigarettes, any way it closed it was bought by a man, he gutted the place, it has become a vibrantly, trendy, welcoming place to go, no more cheap weak beer, etc, the price of the food is quite high, but it's full evey day, it was a roaring success, then it was sold off to his son, he reverted back to chicken nuggets in a plastic basket etc, cheap beer crept back in, the place nose dived again, it was rescued a year latter and it's gone back to how it was, a thriving business, the moral of the story is don't try and cut corners and make it cheap, it's a recipe for disaster, in stead of bulk volume, good quality at a fair price will attract the better paying customers, so put up your prices, they will get use to the prices because every other place has had to put up there price, you have a choice, work 6 days a week for no profit, or work 2 days and make a profit

-2 ( +4 / -6 )

its surprising that most of these restaurants collapse despite running at full capacity almost everyday. Most are full of customers from opening time to closing time yet they collapse. This is purely due to the fact that these restaurants owners have poor ability to operate a restaurant business…nothing more and nothing less!

-9 ( +0 / -9 )

grc

I have business interests in UK Brighton, Nagoya Kochi Japan

Japan we compensate staff with a number of contractual allowances housing, travel/parking, additional bonus structures.

UK Brighton we include regional cost of living weighting/transport rolled into a monthly renumeration.

Over my recent UK visit, prices for personal entertainment/home energy bills/fuel pricing/car parking/food supermarket pricing are considerably higher than Nagoya, Kochi.

The UK salary/renumeration does not cover what I would consider to be an acceptable living wage.

All the friends from college, some life long I met up with were on a tax payer funded welfare benefits, family credit.

They could not afford the costs of a nights out, all were on a wage between £29,000 - £34,000

UK has a noticeable social justice/gap between lower to middle income levels, standards of living in comparison to Kochi, Nagoya.

Restaurant bills Japan are in many cases affordable in relation to earning disposable income, that is my humble opinion from my own experience.

-6 ( +4 / -10 )

We are usually at home mostly so it's our homemade ramen with less salt. Outside I prefer to give my ramen money to an owner than a chain.

5 ( +8 / -3 )

Work colleagues used to save Fridays of "Izakaya" night, with a Restaurant meal.

Now it one Friday per month, the business subsidises.

-9 ( +0 / -9 )

While I feel for any small business shutting down, there simply seems to be an over-saturation of ramen shops in Japan.

I probably eat the Japanese style ramen once a year (Korean or Chinese styles more so) at best as not really a fan of the pork broth and oil. The smell is offensive to my nose for some reason.

I have read it's quite unhealthy, so maybe more people are conscious about this and staying away from the dish, aswell as because of price rises.

Hopefully these small spaces can be used for a better variety of food.

-4 ( +1 / -5 )

Tax revenue, large corporations' profit or internal reserve, number of foreign travelers and stock price in present Japan are highest ever.

But, those don't enrich general public at all.

-5 ( +3 / -8 )

That is surely not so much of a surprise. There are simply too much of them, sometimes you have several ramen shops next to the other in one street or smaller area, and in general, what they sell is also not so outstanding delicious in the very most cases. Additionally, the market potential is of course shrinking in a population shrinking society.

-1 ( +2 / -3 )

If the link isn't stripped out, please see the below JT article from 2024 which said many noodle shops might go out of business because they could not afford the high cost to reprogram their ticket machines to accept the new paper currency? I was expecting to read this article and have JT pat itself on the back for correctly predicting the cause and effect, but it wasn't mentioned at all. Sure enough, nine months later, a record number went out of business...

https://japantoday.com/category/national/japanese-ramen-restaurants-under-pressure-from-new-yen-banknotes

1 ( +3 / -2 )

There's too many serving the same dreary options. Perhaps diversify into tan tan men, laksa or tom yum noodles instead of boring old shio ramen.

-4 ( +5 / -9 )

TokyoLiving

Today 09:43 am JST

Rise the prices a little, problem solved..

Hahaha

0 ( +3 / -3 )

Price rises and inflation are not just happening in Japan, this is a world wide occurrence. Almost everywhere else is effected too. Global economy and interweaving economies means all are effected to some degree when things go south.

Asking why the Jgov has done nothing to stop this is the wrong question. What can the Jgov do to help people in Japan, knowing the world is struggling in exactly the same way.

An example, household energy concessions are happening in Australia to try to provide assistance fairly to all. Still businesses fold and people struggle paying for rent or mortgage, getting food, medicines and paying bills. You guys are not alone.

When something like this is happening around the world it will take concerted joint efforts in working together to solve the underlying causes.

We are all in this together, like it or not. The world is getting smaller as humanity gets more populous. Going it alone wont work any longer.

0 ( +2 / -2 )

Whenever we go out for ramen, we usually only pay around ¥3,500 to ¥4,000 for a family of four, including an order of gyoza. And we all leave feeling full.

By contrast, we went out for sushi today and paid ¥5,300 and I left the place still feeling hungry.

Ramen is still good value for money even if it’s no longer ¥600 for a bowl. I think the reason places are going out of business is most likely the fact that there is so much competition. Also if the cost of ingredients increases but people don’t want to pay ¥900, it’s going to be hard to make a profit.

2 ( +3 / -1 )

Ramen is oily and unhealthy.

Udon or soba is cheaper and better for you!

-9 ( +1 / -10 )

Ramen is oily and unhealthy.

That’s why it’s sooo delicious

Udon or soba is cheaper and better for you!

That’s why they’re sooo boring

-4 ( +2 / -6 )

I was walking through Whity Umeda in Osaka the other day and couldn't find one bowl of ramen in three digits.

1 ( +1 / -0 )

"Some consumers are shifting their perceptions. Munayoshi Suzuki, a 34-year-old Tokyo resident, said he thinks diners have been "spoiled" by low prices, and the food is a "non-necessity" more akin to cigarettes or alcohol."

So, things you can avoid altogether. Well done.

"Into 2025, Teikoku Databank says bankruptcies could continue, with small and medium-sized businesses likely to be more reluctant than larger chains to revise their menu prices."

Of course! The money that could help these people, or just help everyone by not increasing costs on everything and blaming it on every excuse from increased oil costs (which went down, but the increased costs it was blamed on didn't) to the war in Ukraine, and instead spend one one-billionth of what you use in defense spending. Nope. Instead, it's approval of a new record-defense spending budget a few times a year while the rest of us just have to suck it up as costs and taxes increase to compensate.

My friend's yakitori went bankrupt a couple years ago as they still never received the first round of compensation promised during Covid closures... not the same thing, I know, but same government attitude.

-7 ( +2 / -9 )

IMO, you have a generation of small business owners that has never had to deal with inflation and the impact on their businesses. They aren't really prepared for the shift.

That's a very good observation and a likely theory.

I was walking through Whity Umeda in Osaka the other day and couldn't find one bowl of ramen in three digits.

Osaka's best known ramen, Kinryu in Minami, is sounds like its 800 for the basic one. But yes, that's still above this mysterious average of 700. The only ramen I know below that will be garbage ramen in food courts in shopping centers.

1 ( +1 / -0 )

Ramen is still good value for money even if it’s no longer ¥600 for a bowl. I think the reason places are going out of business is most likely the fact that there is so much competition. Also if the cost of ingredients increases but people don’t want to pay ¥900, it’s going to be hard to make a profit.

Exactly, I never could understand that type of business structure. Take the Combini stores, for example, dozens on a single street in less of a 3km route and on literally every corner, how they don't cannibalize each other is just a mystery to me. In the US, they would just go out of business if they were all that close in proximity to one another. Fukuoka is just ramen heaven, there is a shop on every corner, and the vast majority do well, but every now and then a shop goes under, but overall, it is not difficult to find, they're everywhere.

-5 ( +1 / -6 )

Smithinjapan -

My friend's yakitori went bankrupt a couple years ago as they still never received the first round of compensation promised during Covid closures... not the same thing, I know, but same government attitude.

Instead of getting "compensation," it may be better for him to realise that he wasnt cut out for business. Competition is fierce in the food industry, and taxpayers shouldn't necessarily pay for those who fail.

-2 ( +1 / -3 )

There are two contracts of employment here in Japan, both in many instances carry out identical tasks however for unequal rate of pay/reward

The pay and conditions between full time contracts/employment and Part time are the most toxic block to economic growth for the J economy.

On many occasions numerous ruling government LDP Prime Minsters pledge promised reform. To no avail.

Remember the Abe san three arrows?

Well the failure to enact legislation to correct this gross inequality, I contend is the most significant and destructive barrier to solve Japan depopulation crisis.

And central to this thread, disposable income!....

Part Time Vs Full Time Jobs – Understanding Which One Is the Best

Full-time employees in Japan also get access to an array of benefits and protections that part-timers miss out on. These include: Enrollment in the company's health insurance, pension schemes and retirement plans. Paid leave entitlements – part-timers usually get fewer paid vacation/sick days.

https://www.workjapan.jp/jobseeker/blog/japan/part-time-vs-full-time-jobs-understanding-which-one-is-the-best#:~:text=Full%2Dtime%20employees%20in%20Japan,fewer%20paid%20vacation%2Fsick%20days

-1 ( +0 / -1 )

The photo I suggest is a wonderful example of a bespoke family run business, a ramen "craftsman" service a community clientele, snug, cozy, cultural comfort food, generation after generation.

We have a number of family run Ramen/Gyudon, Tonkatsu/Tempura Restaurants/café within 15 minutes brisk walk.

All are priced to provide a community model, quality J food specialities, at affordable prices

That is what is sometimes missing in the UK, especially the big cities.

-1 ( +0 / -1 )

itsonlyrocknroll: It because they have way less overhead, They live where they work so saving the cost of rental, I know you can do that in my country or state it have be a a certain zone to place a business. But Japan don' have these zones. You can have smash repairer next door and hairdresser 3 doors up.

0 ( +2 / -2 )

The gluten in noodles is not helping either

-2 ( +1 / -3 )

John-San, I see your point, that flexibility with family member that chose to carry the business forward were able to whether the pandemic.

-1 ( +1 / -2 )

Them prices have gone up but compared to the West the prices are still well cheap. However many people are feeling the pinch and being very frugal here. Round here there are new places aimed at tourists, proper twister prices but full, no locals go of course because the prices are diabolically high.

Compared to my home country England though there are still loads of shops, cafes and eateries that are family run and been around for decades and I like it. The West is becoming a monoculture, all high streets and stores the same, hoping that’s far away from happening here.

-3 ( +0 / -3 )

As prices for food continue to rise, finding simple and nutritious meals at reasonable cost is becoming increasingly difficult. Ramen tend to be overseasoned and oversalted, in other words, junk food for the masses. The last time I ate ramen at a counter in a specialty restaurant was in 1982.

3 ( +3 / -0 )

People are fine eating cheap Ramen, all the bells and whistles that make it fancy are too expensive for a lot of people. They can get a 6 pack of beer for the difference in price.

1 ( +1 / -0 )

Full-time employees in Japan also get access to an array of benefits and protections that part-timers miss out on. These include: Enrollment in the company's health insurance, pension schemes and retirement plans. Paid leave entitlements – part-timers usually get fewer paid vacation/sick days.

You're also missing one big fundamental difference, which is full timers are paid more per month than a part timer doing full time hours. Plus they get bonuses, twice a year.

Essentially, part timers do not have any power, except they can control their schedule. It is essential to know that a full timer often has to stay extra time at the whim of their management and companies must adhere to part time wishes on scheduling, so even if a manager requires a part timer to do overtime, a part timer can and should say no, if they do not want to do the OT.

When a busy time of year, say, for a hotel or guest services type work, FT must work every holiday and work, often without enough help to compensate for the extra number of guests to serve. Work harder is the management mantra. Full timers say yes or they lose their benefits over the PT, and, of course, are afraid to lose their jobs. Some foreigners have visa issue which say they must be subservient and cannot say anything against the company, thus complaining about work conditions is a non starter, which allows companies to manipulate workers. Thus FT often kiss the butt that feeds. They have no choice.

PTers even worse because the FT are frustrated and they aren't empathetic as a rule, they'll make the PTers work harder, with what they will believe is they are superior to the PT, and as they're getting made to do more work, frustrations set in and they repeat the same behavior as management over PTers, so the frustration becomes pretty vicious.

All lose their will to want to be better at work, it's counterproductive when the country, the companies, managers, etc. don't care about the labor force whether they are satisfied with their jobs, they'll just say people are getting paid and you're lucky to be working.

Considering labor is what drives people and satisfaction is why most people tend to live, the frustration leads to what Japan is suffering from, which is apathy for life and family, segue to the slippery slope of depopulation, and that trend will not turn around, so Japan cannot stop the trend of a future downward economy.

It's too late, because there are no labor unions nor anyone who truly cares for the everyday worker. No company in Japan actually has a labor office to help labor, so the difficulties that occur, like a company being too cheap to hire enough people for shifts making the one's who do work get gaslit into thinking they're lucky to have work hours, have zero power and zero backing to protest unfair situations.

This is life in any Japanese company, even the one's controlled by foreigners, which...they're businesses that could try to leverage better conditions for workers, but will not, it's a built in excuse to have lower labor costs, and work the hell out of the workers by saying, 'well, this is Japan, we do as they do'.

So, no changes for the good of the people is catching up to the owners and companies as the worker isn't happy, but mostly, Japan as country suffers and get what it deserves, as the work force isn't off the hook on this matter either, as the culture says obey and don't make waves, when they should have and needed to.

Companies in Japan have taken the good and bad of omotenashi of the people and their subservient educational ways to raise obedience to societal harmony. The Japanese needed to speak up a long time ago and change their inability to fight the companies and not feel guilty for wanting a better wage vs. inflation.

As for part time workers, they work harder, surely physically, than most FT and management, with less pay and more directives from many who make not a whole lot of sense, far too often. Because Japan is not a meritocracy, it's nepotism, who kisses who's butt and how good they are at it. longevity of employment, and how well someone works isn't the scale. In fact, I've heard management say, 'PT are a pool of people. Some work harder than others. If you want more pay for doing work well, go find another job'.

Oh, and one other thing. At certain ages in an aging population, 65 and above, As a law, Japan prohibits full time workers. For what reason is actually unknown because as an over 65 worker, one cannot get benefits but still has to pay social insurance or 'nenkin', when one can get 'nenkin' at 60. So that makes zero sense, but the point is, one can work harder than the full timer or other part timers, said to be in a pool of PTers, so there is no compensation for good work, get no bonus, less vacation time, and perhaps the reason an older person is working because they have to.

Yep, Japan, makes a lot of sense, right? A law that prohibits FTers over 65 for who's sake?

0 ( +0 / -0 )

Japan suffers from wage stagnation but it is nowhere as bad as countries like Australia. The salaries in Australia sound good on paper but after taking out the colossal expenses there is hardly anything left.

0 ( +0 / -0 )

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