Japanese izakaya face record bankruptcies.
Izakaya in Japan are facing record bankruptcies due to rising costs and changing consumer habits, with 203 bankruptcies reported in 2024.
You won’t believe this, but more Japanese izakaya pubs are filing for bankruptcy now than during the height of the pandemic. A recent study by Teikoku Databank shows that 203 izakaya have declared bankruptcy this year alone, marking the highest number in 15 years and setting the stage for 2024 to blow that record out of the water. With rising prices and changing consumer habits, it’s like a bad reality check for these places that used to thrive on after-work parties.
So what's the deal? People aren’t rushing to down drinks with coworkers after work like they used to, and with the yen dropping and inflation hitting restaurants hard, they're forced to raise prices. Now folks are tightening their belts and thinking twice about that night out. It's a tough situation, causing a vicious cycle that leaves both izakaya and customers in a pinch. Until things shift, it might be wise for all of us to rethink our izakaya plans!
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