Surging food and utility costs are squeezing thousands of izakayas across Japan, with experts fearing a record number of bankruptcies.
The country’s beloved pubs, known for serving cheap drinks and small snacks, have long been a staple of Japan’s nightlife culture.
But rising costs and a shift in the country’s drinking culture are piling on the pressure, with a record 118 izakaya operators going bankrupt in the first six months of the year.
Owners now face the tough decision of raising prices and risking losing customers, or absorbing higher costs and sacrificing profits. “If we raise prices much further, people will stop ordering,” the owner of an izakaya famed for its straw-seared bonito told Nikkei.