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Last orders? Soaring costs and declining demand take toll on Japan’s legendary izakaya | Japan

IInside a commercial building in Tokyo's Shinbashi neighborhood, office workers in the Year of the Snake have hardly lost their desire to share Japanese food and drink draft beer. Packed with plates of charcoal-grilled chicken, bowls of edamame, and flasks of hot sake. the call of welcome! ” We welcome a new group of customers.

It wasn't that long ago that curfews and alcohol bans were enforced to limit the spread of the coronavirus. Izakaya – Casual and boozy salons of various sizes, from cozy shops to service Yakitori (roasted chicken skewers) to a cavernous space with a seemingly endless menu, with last orders available during what would normally be the busiest time of the evening.

The pandemic has passed, but thousands of people in Japan Izakaya Businesses are battling new threats on two fronts: rising costs and declining demand.

Changing customer behavior is posing challenges to Japan's traditional bars. Photo: Jeremy Sutton Hibbert/Alamy

It's often described as a Japanese-style izakaya, which is a bit misleading given the amount of food on offer. Izakaya Businesses are closing at a faster pace than in 2020, when the new coronavirus became a global pandemic.

203 from January to November last year Izakaya The number of business owners declared bankrupt exceeded the 189 companies recorded in all of 2020, according to Teikoku Databank, which provides financial and research support services.

While many people celebrated the end of pandemic restrictions by resuming regular nights out with colleagues and friends, a significant proportion are spending a cheaper evening at home and continuing to practice social distancing.

Economic factors are also taking a toll Izakaya sector. Cash-strapped consumers are ordering fewer items, while restaurant operators grapple with rising costs for materials, energy and labor.

After decades of stagnation, Japan's inflation rate has risen in recent years, reaching a 10-year high in 2023. It currently hovers around 2%, lower than in many peer countries, but household budgets have been hit by overall price increases. Aim to tighten the economy by lowering real wages.

Approximately 40% Izakaya According to Teikoku, the company had been in the red for the 12 months up to April last year, and an increasing number of stores were trying to survive by starting over as cafes or fast food restaurants.

But there is little they can do about consumer behavior. Simply put, young people in Japan, like young people in other parts of the world, are no longer thinking about having a good night drinking copious amounts of beer, sake, and wine. Shochu.

Japan's demographics are the biggest challenge facing it Izakayasaid veteran Robbie Swinnerton. restaurant critic In the Japan Times.

Izakaya “It's a vestige of the early days when post-war baby boomers ruled the roost,” he said. “There are fewer young people these days and they don't drink as much. And they don't want to drink in the same places as their parents and grandparents. The same goes for food. The food is not necessarily what young people want to eat.”

Ramen is considered Japan's soul food. Photo: Robert Gilhooly/Alamy

This rot has spread to other areas of Japan's food culture that once seemed impenetrable. Ramen restaurants, the country's undisputed soul food, went out of business in record numbers last year. Rising costs have damaged the dish's reputation for value for money.

According to Teikoku, almost 34% of the 350 ramen restaurants surveyed said they would be operating at a loss through 2023.

While the price of a bowl of ramen still averages less than 700 yen (£3.70 or $4.50), the price increase is significant enough to make some diners choke. Tonkotsu broth. The prices of the main ingredients – flour noodles, pork and vegetables – are on average 10% higher than in 2020.

Takatoyo Sato, the manager of a noodle factory in Shinbashi, was forced to set prices last year and saw a decline in customs. His most popular menu item, ramen with a soy sauce-based soup, has increased in price from 780 yen to 950 yen in 2021, moving dangerously close to 1,000 yen, a ramen addict who started out as a hidden market food. I don't want to pay money. The era of postwar austerity.

“The price increase was unavoidable,” Sato told Kyodo News. “Otherwise we would have been in the red.”

Enjoy soup noodles made at a ramen shop in Fukuoka. Photo: Robert Gilhooly/Alamy

Sato's dilemma is well known to budget manager Shingo Shimomura. Izakaya Osaka's Fukushima district is a food-obsessed city that encourages tourists to “eat and go broke.”

“The prices of everything we use a lot, such as rice, octopus, tuna, eggs, and cooking oil, have increased,” Shimomura said. Reluctant to pass on price increases to customers, they still offer lunch sets for just 500 yen. “If we raise the prices, the customers won't come,” he added. “I'm busy but I can't make any money.”

He is 52 years old. Izakaya Having been in business for almost 30 years, the company has noticed a decline in appetite for alcohol. “Even office workers spend less than before, and young people hardly drink alcohol anymore.”

Japan's drinking culture is traditionally centered around work. Izakaya A great place for junior staff to socialize with senior colleagues outside of work hours – a portmanteau of the Japanese verb “to drink” [nomu] And communication.

But the pandemic has reminded young people that their social lives don't have to revolve around work. “Traditional things are Izakaya's The days are coming to an end,” Shimomura said. “Young people don't want to drink with their bosses anymore.”

The decline began before the coronavirus outbreak; Izakaya It has fallen victim to population decline, the rise of the “sober and curious” Generation Z, and competition from more “sophisticated” eateries.

“Times have changed and Japan has changed,” Swinnerton said. Izakaya I've been a fan since I came to Japan in the 1980s. “Anne Izakaya It used to be a place to relax, eat, drink, and chat. They were a place to relax from the pressures of work, family, and society in general. That role still exists, especially in a time of increased fragmentation and fragmentation of life, but these days there are so many alternative places to eat, drink, and relax with friends and colleagues. there is. ”

However, the executive director, Sachiko Inamura, Japan Izakaya Associationsaid the charm of traditional Japanese-style izakayas will persist despite a tough labor market and rising costs.

Inamura says, “The idea of ​​offering delicious food and local sake from each region may be unique to Japan.'' “And in the smaller ones, Izakayathe menu changes from time to time, so you'll never get bored.

“Go to Izakaya People come not only to eat and drink, but also to enjoy the unique atmosphere. They are a great part of Japanese culture and great companies really know how to connect with their customers. ”

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