Ramen shop bankruptcies to exceed 100 in Japan: Survey
The total number of ramen shop bankruptcies from January to July came to 49, the highest since 2014, Japan's Teikoku Databank.
TOKYO - Bankruptcies of ramen shops serving Japanese noodles saw a sharp increase in the first seven months, indicating the industry could see over 100 bankruptcies by the year's end, according to a recent survey by a credit research company, reported Xinhua.
The total number of ramen shop bankruptcies from January to July came to 49, the highest since 2014, Japan's Teikoku Databank said in its newly released report.
The figure, suggesting a nearly twofold increase on year, raised alarms across the sector as the highest annual bankruptcies recorded were 54 in 2020 and 53 in 2023.
Behind the surge lies the rising cost of ramen ingredients, according to Teikoku Databank, whose cost analysis for pork bone-based ramen in Tokyo revealed that the production cost per bowl has risen by more than 10 per cent since June 2022.
The escalation is driven by soaring prices of pork and noodles and increased utility costs.
"Many shops are unable to cope with the accelerated pace of ingredient price hikes. Even those that have raised prices to offset costs have seen a subsequent decline in customer footfall, leading to closures and bankruptcies," the report noted.
Facing severe cost pressures, the annual figure of ramen shop bankruptcies is expected to surpass 100 for the year, the report added. - BERNAMA
