TOKYO, Oct 03 (News On Japan) - Bankruptcies of yakiniku restaurants in Japan have surged to a record pace this year, largely due to the rising costs of imported beef fueled by the prolonged depreciation of the yen.
According to Teikoku Databank, the number of yakiniku restaurant bankruptcies between January and September this year reached 39, doubling compared to the same period last year. This marks the highest annual number since the survey began in 2000.
The main factor behind this is the historical yen depreciation. Prices of imported meat, including beef from the United States, have continued to soar, with the cost of imported beef rising to an average of 1.7 times higher than four years ago.
Additionally, increases in electricity, gas, and labor costs have further strained business operations.
Teikoku Databank's analysis indicates that smaller yakiniku restaurants, in particular, have been unable to implement significant price hikes due to concerns over losing customers, leading them to struggle in the fierce price competition. There is a possibility that the number of bankruptcies may exceed 50 for the year.
Source: TBS
