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Japan’s Ramen Shops Are Shutting Down Faster Than Ever
Ramen shops have been struggling for years. But the combination of low prices and inflation is pushing more stores over the edge than ever.
By Francesca Annio
Japan’s facing a tough economic climate — inflation’s up, the yen’s down, and wages haven’t budged. Businesses can’t keep prices stable, and people can’t keep up with the hikes. This squeeze is hitting every corner of Japanese life, but one industry is really taking a hit: ramen shops. Many are struggling to stay afloat and are facing closure.
One by one
Ramen shop owners are sounding the alarm: business is not looking good. Despite ramen being a beloved national dish and a must-try for tourists, many ramen shops are now facing a rapid decline. The reason? Ongoing inflation, skyrocketing raw material prices, and a weak yen that have hit all industries hard — especially restaurants.
Ramen shops have weathered tough times before, so this didn’t happen overnight. Like many industries, they struggled after the COVID-19 pandemic, with 54 ramen businesses going bankrupt in 2020 alone. There was a brief lift with pandemic aid and interest-free loans, but as those supports faded and the post-pandemic economy took hold, things started to go south again.
In 2023, bankruptcy cases among ramen shops soared to 53, with debts over 10 million yen, marking a 114.2% increase from the previous year. Unfortunately, 2024 is on track to set new records. By July, the number of bankruptcies had already hit 53, and it might top 100 by year’s end — a first for the industry. Regionally, the Kanto area felt the biggest impact in 2023 with 14 cases, followed by the Chugoku region with 8. The high number of ramen shops and tough competition in these areas are likely to blame.
At the heart of this crisis is a vicious cycle of inflation. Raw material costs have surged by 10% over the past two years, driving up the…
