Society

Restaurant bankruptcies to hit all-time high in 2020

Dec 13 (Japan Today) - The number of bankruptcies in Japan's dining industry will likely hit an all-time high in 2020 as many establishments struggle to restore their cash flow amid the ongoing coronavirus pandemic, the results of a recent survey showed.

According to the survey conducted by Tokyo Shoko Research, bankruptcies of companies with debts of at least 10 million yen from January to November stood at 792, an increase of 8 percent compared with the same period last year.

With Tokyo and some other local governments once again requesting that dining establishments shorten their business hours due to a resurgence in infections, the figure is almost certain to surpass the previous annual record of 800 set in 2011.

Eateries specializing in a particular cuisine, such as Japanese food or ramen, made up the largest portion of bankruptcies at 192. It was followed by cafeterias and restaurants at 184, and izakaya Japanese-style pubs at 162.

By prefecture, Osaka saw the most bankruptcies among eateries at 146 cases, followed by Tokyo at 129 and Aichi at 76.

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