Japan is suffering a record number of ramen shop bankruptcies. And it is partly the result of the “1,000 yen barrier”

The ramen is almost a religion (gastronomic) in Japan. One, yes, condemned to adjust to a certain price range. Although bowls of noodles with soup, meat and vegetables are one of the symbols of Japanese cuisine and a draw for tourists, in the country ramen is seen as a modest dish for students leaving school or workers with a brief lunch break. A sort of ‘worker menu’. So much so that there is even talk of “1,000 yen wall”a psychological barrier to noodle bowl prices. The problem is that Japanese hoteliers have seen their costs increase until they are dragged into a critical situation: in 2024 they registered a record of bankrupt ramen shops and, although the situation improved significantly in 2025ruined businesses still number in the dozens. Bad season for business. That the expense sheet increases while the income sheet is conditioned by a psychological barrier that limits prices can only translate into one thing for businesses: problems. Japan’s ramen restaurants know this well, having been registering dozens and dozens of bankruptcies for years and in 2024 they even reached a record of closures. The data They come from the research firm Teikou and are eloquent. In 2020 there were 54 ramen restaurants condemned to bankruptcy, in 2021 there were 17, a figure that is largely explained by the aid given by the Government during the COVID-19 pandemic, and in 2022 the bankruptcies rose again to 33. The following year there were 53, in 2024 a record of 79 bankruptcies and last year, the latest data available, 59 stores were declared bankrupt. For their study, Teikoku technicians mainly take into account those businesses that accumulated debts of more than 10 million yen (just over 54,000 euros) and have no choice but to declare bankruptcy. The key: the trend. The figure may seem low if one takes into account that throughout the country they are distributed more than 21,000 restaurants of ramen, but it is significant. Last year, in fact, he made the weapons fly due to the record of bankruptcies. The latest data from the sector are somewhat more positive, but are still far from ideal: dozens and dozens of businesses continue to close. However, there is another reason why the figures attract attention: the discourse. Local media and international They have spent time warning of the cascade of closures. There is who warns Furthermore, beyond the balance of bankruptcies, a significant number of establishments that remain open do so in delicate financial health. That is, they remain operational, but they are not well. Struck by costs. Bankruptcy figures may vary depending on the period analyzed, but what does not vary are the analyzes that talk about the causes of the ramen crisis. The diagnosis It is clear: the problem for the stores has been the rise in costs and the limited margin to pass it on to customers. In 2025 Washington Post cited a study from Teikoku Databank that concluded that the sum of the ingredients – including pork, pasta and seaweed –, labor and energy required to make ramen had increased by around 10% in three years. Other calculations They point out that the cost per client grew by 5% between 2022 and 2023. “Prices have been rising over time, but in the last three years they have been incredible,” recognized Tetsuya Kaneko, with a location in Tokyo. The ‘perfect storm’ of ramen. Tetsuya Kaneko assumed in fact that his case was not unique and “everyone in the sector is struggling.” At the end of the day, hoteliers have been forced to deal with a ‘perfect storm’ that works against them: inflationthe rise in import prices due to the weakness of the yen against the dollar and the increase in the cost of energy that had the war in Ukrainewhich also affected the flow of cereals. For three months now, the war in Iran has been added to this panorama, which has made transportation more expensive. “The example of ramen shops illustrates economic trends well because they have a hard time passing on increased costs to end consumers,” explains to the newspaper American Norihiro Yamaguchi, economist specializing in Japan at Oxford Economics. In his opinion, until 2022, consumers were hesitant about any price increase, but the reality is now different: “They have to accept the increase in the cost of living.” For all pockets. As if the situation were not complex in itself, ramen establishments have to deal with another challenge: prices. Or rather, the image that the dish has in the country and the psychological barriers that in a certain way determine its rates. It is not something completely unknown in Spain, where a similar logic operates in the menus of the day of the restaurants. “Ramen has always been a staple food for low-income people, students… I don’t want it to be out of reach,” Kaneko explains.. The “1,000 yen wall”. A quick Google search shows several references, both on blogs and specialized websites in Japanese culture as in diaries generalistswhat is usually called the “1,000 yen wall”, which in exchange amounts to about 5.4 euros. That round number marks the price ceiling that rarely exceeds a basic noodle bowl with broth, meat and vegetables. Or so it was until recently. Faced with the new scenario and the delicate situation to which many businesses have been dragged, those in charge have had to consider a dilemma: cross the 1,000 yen barrier or resign yourself to following in the footsteps of the 72 establishments closed in 2024 and 59 in 2025. Upload with apology included. A few months ago Kaneko I remembered how in 2023 it had to increase its prices by 50 yen, reaching 1,000 for a standard bowl. Another professional in the sector, Taisei Hikage, recalled how rates have changed in a matter of a decade: if 10 years ago there were basic noodle dishes for 500 yen, today the situation is very different. When he opened his own restaurant in 2023, he … Read more

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