Japanese Curry Restaurants Face Record Bankruptcies Amid Rising Costs
Thirteen curry restaurants declared bankruptcy, driven by increased ingredient prices and declining demand.
Thirteen curry restaurants in Japan, burdened with debts exceeding 10 million yen (approximately $70,000), declared bankruptcy in the fiscal year ending in March, marking a record number for the second consecutive year, according to a report from a Tokyo-based research firm.
The overall number of bankruptcies is likely significantly higher when accounting for smaller family-run establishments.
The report highlighted that the prices of essential ingredients for Japanese curry, such as rice, spices, meat, and vegetables, have surged due to rice shortages, adverse weather conditions, and a weakened yen.
Rising energy costs have also diminished profit margins for restaurant operators.
Japanese curry, a thick brown sauce typically served with meat and vegetables over rice, is a staple of domestic cuisine.
The classic curry rice dish now costs approximately 365 yen ($2.50), marking the highest price recorded thus far.
In response to soaring rice prices ahead of upcoming summer elections, the government of Prime Minister Shigeru Ishiba is attempting to stabilize costs by releasing staple food supplies into the market.
During the COVID-19 pandemic, demand for curry increased due to takeout and delivery orders; however, this surge has since slowed, contributing to a decline in sales, according to the report.
The overall number of bankruptcies is likely significantly higher when accounting for smaller family-run establishments.
The report highlighted that the prices of essential ingredients for Japanese curry, such as rice, spices, meat, and vegetables, have surged due to rice shortages, adverse weather conditions, and a weakened yen.
Rising energy costs have also diminished profit margins for restaurant operators.
Japanese curry, a thick brown sauce typically served with meat and vegetables over rice, is a staple of domestic cuisine.
The classic curry rice dish now costs approximately 365 yen ($2.50), marking the highest price recorded thus far.
In response to soaring rice prices ahead of upcoming summer elections, the government of Prime Minister Shigeru Ishiba is attempting to stabilize costs by releasing staple food supplies into the market.
During the COVID-19 pandemic, demand for curry increased due to takeout and delivery orders; however, this surge has since slowed, contributing to a decline in sales, according to the report.
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