A bar district in Shinjuku, Tokyo — January 4, 2021. (©Sankei by Kengo Matsumoto)
In 2025, 900 restaurants went bankrupt, up six from the previous year and the highest total on record. This marked the third consecutive year of rising bankruptcies, according to figures released on January 13 by private research firm Teikoku Databank. The firm said that rising food and energy costs, along with higher wages driven by labor shortages, have squeezed cash flow at many restaurants.
By category, pubs and beer halls, including izakaya, recorded the most bankruptcies, with 204 cases. Although this was eight fewer than in 2024, the total has remained above 200 for three straight years since 2023, highlighting the sector's continued strain.
The second-largest category was Chinese and other Asian restaurants, including neighborhood Chinese eateries, ramen shops, yakiniku, and curry restaurants, with 179 bankruptcies. This was a sharp increase of 21 from 2024, setting a new record. They were followed by Japanese restaurants (97), bars and cabarets (89), and Western-style restaurants (87).
Teikoku Databank said that bankruptcies were especially common among businesses affected by fewer group diners, growing consumer frugality, and rising costs for ingredients and labor.
Ramen Shops
In contrast, a separate survey released on January 10 focusing solely on ramen shops found that bankruptcies fell to 59 in 2025, down from 79 the previous year. The firm said that, while the restaurant industry overall remains under pressure, ramen shops appear to be entering a turning point after a period of intense shake-outs.
According to Teikoku Databank, many ramen businesses have strengthened their operations by expanding soupless noodle offerings, which reduce soup-related costs, and by using central kitchens, allowing shops to prepare meals from semi-finished products. These changes make it easier to remain profitable even with fewer customers.
Of the 59 bankrupt ramen shops, 42.3% had capital of less than ¥1 million JPY (about $6,300 USD) — a much lower share than in 2019, when nearly half fell into this category. This suggests that the wave of small-shop closures is beginning to ease.
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(Read the article in Japanese.)
Author: The Sankei Shimbun
