Noodle no more: Ramen shops fold under rising costs (video)
In an unprecedented wave of financial distress, a record number of ramen noodle eateries in Japan went belly up in 2024, unable to stomach the soaring ingredient and utility costs without raising their own prices.
Research firm Teikoku Databank Ltd has revealed that insolvencies with liabilities of at least 10 million yen (approximately 2.2 million baht) surged by more than 30% to reach 72, a steep rise from 53 the previous year.
Ramen, the beloved Japanese noodle soup laden with meat and vegetable toppings, remains a go-to for affordable dining, with a steaming bowl typically costing under 700 yen. But with the cost of ingredients climbing over 10% since 2022, businesses are feeling the pinch, facing pressure to nudge prices closer to the 1,000 yen mark, a shift that could taint ramen’s image as a budget-friendly staple and potentially turn customers away.
In Tokyo’s bustling Shimbashi business district, Takatoyo Sato, manager of Menkoi Dokoro Kiraku, took the bold step to raise prices in May 2024, amidst tough trading conditions.
The fan-favourite shoyu ramen, featuring a rich soy sauce-based broth, now sets diners back 950 yen, up from just 780 yen in 2021.
“I couldn’t hesitate in raising prices, otherwise we’d have been in the red.”
Teikoku Databank’s survey of 350 ramen establishments found that about 34% were operating at a loss in fiscal 2023. Sato has observed a dip in regular patronage since hiking prices, a trend which reflects ramen’s shifting status from a comfort food staple to a pricier luxury.
For some, such as 34 year old Tokyo resident Munayoshi Suzuki, ramen is seen less as a daily necessity and more akin to indulgent treats like cigarettes or alcohol.
The forecast from Teikoku Databank suggests that bankruptcies could carry on through 2025, with smaller eateries more reluctant than larger chains to adjust their menus upwards.
Sato, wary of further price hikes, simply hopes “costs don’t rise further this year.”
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