Soaring Ingredient Costs Make Survival Difficult... Japan's Yakiniku Restaurants See Record Closures

Imported Beef and Vegetables All Soar
Rising Burdens of Electricity, Gas, and Labor Costs
Record 39 Cases Until September This Year, Highest Ever
Much More When Including Small-Scale and Individuals

The Bulgogi set meal (lettuce version) sold at Japan's 'Yakiniku Like' costs 1,290 yen (approximately 12,000 KRW).
[Photo by Yakiniku Like]

"Thank you always for using ‘Yakiniku Like.’ Unfortunately, some menu prices will change starting September 30, 2024. We ask for your understanding."

This is a notice from ‘Yakiniku Like,’ a solo dining yakiniku restaurant headquartered in Tokyo, Japan. This place has only single seats and is popular among solo diners and solo drinkers. However, due to difficulties in covering ingredient costs, prices have been raised three times a year. In April, they announced, "Due to the impact of raw material, logistics costs, and exchange rate fluctuations, prices will be increased." In October last year, they also asked for understanding, saying, "Due to the sharp rise in raw material prices, logistics costs, and exchange rate impacts, after repeated internal adjustments and reviews, we have decided to adjust prices." In particular, they said, "We have continuously strived to allow customers to enjoy yakiniku easily without burden, but maintaining prices has become difficult. We sincerely apologize and ask for your broad understanding."

Yakiniku (grilled meat) restaurants in Japan are closing down one after another due to rising ingredient costs.

According to Teikoku Databank on the 2nd, from January to September this year, there were 39 bankruptcies (debts over 10 million yen) among yakiniku restaurant operators. This is more than double compared to the same period last year (16 cases). It also surpassed the previous record high of 26 cases in 2019, marking the highest ever. Teikoku Databank stated, "Including closures of small-scale stores such as sole proprietorships, it appears that even more yakiniku restaurants have exited the market." Yakiniku restaurants are effectively at their limit. As the yen continues to weaken, prices of imported beef from the U.S. and other countries are rising. Compared to 2020, prices have increased by 1.7 times. Prices of major vegetables, including cabbage, have also risen by 1.3 times.

Although yakiniku restaurants have higher unit prices compared to other dining menus, consumers feel burdened by the prices, making price increases difficult. Teikoku Databank said, "With the increasing burden of ingredient prices, operating costs such as electricity, gas, and labor costs are also becoming a heavy burden," and predicted, "In 2024, bankruptcies of yakiniku restaurants may exceed 50 cases annually for the first time."

This content was produced with the assistance of AI translation services.