Japan's ramen crisis: Yen slump and labour woes deepen
In 2024, more than 10,000 companies went bankrupt in Japan, including a record number of ramen restaurants. The causes were labour shortages and rising import costs. The value of the yen fell to its lowest level in 37 years, worsening the situation further.
In 2024, 10,006 companies declared bankruptcy in Japan, as reported by the Kyodo agency. The main reasons were an increasing labour shortage and rising prices of imported goods. Ramen-serving restaurants were particularly affected, with the number of closures reaching a record high.
According to Tokyo Shoko Research, the number of companies with debt of at least 10 million yen increased by 15.1% compared to the previous year. The value of the yen fell to its lowest level in 37 years against the dollar, which increased import costs. Industries such as services and construction recorded the most bankruptcies.
A blow to ramen's image
The Kyodo agency, citing data from the analytics firm Teikoku Databank, reported on Monday at around 9:00 AM Eastern Time that last year 72 ramen restaurants disappeared from Japanese cities, which is 30% more than the previous year.
The main causes were rising employment costs and an increase of over 10% (over two years) in the prices of the ingredients for this noodle soup.
Analysts note that to balance these changes, owners would have to raise the price to more than 1,000 yen (approximately $9.20 CAD) per bowl, and "crossing this barrier is seen as a blow to ramen's image, which could deter customers."
Therefore, according to Teikoku Databank data, almost 34% of restaurants absorbed the costs last fiscal year, resulting in losses. In 2025, due to a reluctance to change menu prices, the number of closed restaurants may increase even more.
