Cake Shop Crunch: Rising Costs Force Closures at Record Rate

KYOTO, Jun 14 (News On Japan) - An increasing number of Western confectionery shops in Japan, particularly cake shops, are going bankrupt. According to research released in June, from January to May, there have been 18 bankruptcies, the highest number since 2010. If this trend continues, it will surpass the record set in 2019.

According to research released in June, from January to May, there have been 18 bankruptcies, the highest number since 2010. If this trend continues, it will surpass the record set in 2019.

One of the primary reasons for these failures is the steep rise in the cost of raw materials. Many stores have found it impossible to cope with the surge in prices for almost all ingredients essential for making Western-style sweets, from sugar to eggs.

In Uji City, Kyoto, a popular Western confectionery store continued to draw in a crowd on the 13th, offering around twenty seasonal cake varieties. One customer shared her enthusiasm, “Today, I've bought a strawberry shortcake and a Mont Blanc with Japanese chestnuts for myself, which I find exceptionally delicious.” Another mentioned, “I'm here to pick up a birthday cake for my boss, the quality here is really impressive.”

Yuji Hasegawa, the owner of Patisserie Yuji, noted the impact of these cost increases. “This is our fresh cake display, and prices here have risen across the board, by about 10 to 20 percent compared to last year. That’s the extent of the increase we’re seeing.”

Consequently, the increased cost of raw materials has inevitably led to higher product prices. “Overall costs have risen, and there’s nothing that can be done about that,” said Hasegawa. “We are focusing on limiting the number of products we offer and adjusting our prices accordingly.”

Source: YOMIURI

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