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.