Updated
Updated · The Guardian · Jun 9
Japan Izakaya Closures Hit Record 88 as Costs Rise and Younger Drinkers Pull Back
Updated
Updated · The Guardian · Jun 9

Japan Izakaya Closures Hit Record 88 as Costs Rise and Younger Drinkers Pull Back

1 articles · Updated · The Guardian · Jun 9

Summary

  • Eighty-eight Izakaya went out of business in January-April, a record for the period and more than 50% above a year earlier, according to Tokyo Shoko Research.
  • Rising food, drink and labor costs, persistent staff shortages, lighter drinking by younger customers and the decline of after-work drinking parties are squeezing the sector from both cost and demand sides.
  • Independent taverns are struggling most to tap Japan’s 42 million foreign visitors because many lack multilingual ordering, while some traditional menus and earlier closing times further limit tourist traffic.
  • Some operators are still growing by changing menus daily, speeding table turnover and targeting women’s groups, while British-style chain HUB has expanded to 110 pubs and forecast fiscal-year sales of 12 billion yen.

Insights

As Japan’s after-work drinking culture fades, what will replace the izakaya as the nation’s core social hub?
With rising loneliness and fewer public venues, is Japan's move to at-home drinking a crisis in itself?
Will Japan’s new labor policies save its traditional izakayas, or hasten their demise in favor of automated chains?