Japan sees decline in ramen restaurant bankruptcies for first time in years.
In 2025, ramen restaurant bankruptcies in Japan decreased by 25.3%, but the industry still faces significant financial challenges.
2024 was a tough year for ramen restaurants in Japan, with bankruptcies hitting a record 79, making it the third consecutive year of rising failures. However, there’s a silver lining in the 2025 report from Teikoku Databank, which reveals a 25.3 percent drop in bankruptcies, bringing the number down to 59. Analysts point to rising ingredient costs—up 41% since 2020—as a main culprit for the trend, emphasizing the increasing pressure on ramen shops to adapt.
Teikoku suggests that the decrease in bankruptcies stems from new strategies like brothless ramen and cashless payment systems, helping cut overheads and boost profitability per customer. Still, 59 bankruptcies is significant, marking the second highest since 2010, and ingredient prices remain a challenge. While there’s optimism looking ahead, the long-term impact of raising prices could risk ramen’s reputation as an affordable delicacy, especially among younger diners.
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