Izakaya Under Pressure

[Mulboyne]

Teikoku Databank has released information about bankruptcies in the restaurant sector. 2010 saw a total of 623 cases, a fall of 3.6% from the previous year, but within that, 201 izakaya went under which was a rise of 4.1% from 2009 and a record high. 83.6% of all bankrupt restaurants put it down to a bad business environment - the first time that number has exceeded 80% - with izakaya particularly affected by a drop in salaryman traffic. Large-scale chain izakaya are also competing hard on price which is pushing smaller operators to the wall. Tougher drink driving penalties, which came into force in 2007, are also thought to be hitting that market segment. Separately, 71 western restaurants went bust last year, a rise of 34% from last year, and 88 Chinese restaurants, up 20.5%. Both figures represented record highs. The Japan Food Service Association said total industry sales actually rose 0.5% in 2010, the first rise in two years, but average customer spending fell 2.1%, more than the 1.7% drop recorded in 2009. Customers may be out in slightly greater numbers but they are searching for cheaper options even more.

Source (Japanese)