Ramen, often considered a culinary cornerstone in Japan, is traditionally tied to a specific price range. While bowls of noodles with soup, meat, and vegetables symbolize Japanese cuisine and attract tourists, ramen is largely viewed as a modest dish for students or workers—a “working man’s menu.” This perception has given rise to the “1,000-yen wall,” a psychological price ceiling of about $6 per bowl.
However, rising costs have pushed many restaurateurs into financial distress, resulting in a record number of ramen shop bankruptcies in 2024.
A challenging year for ramen shops. As expenses climb and prices remain constrained by the psychological ceiling, ramen businesses are struggling to stay afloat. Research by Teikoku Databank shows that 72 locations went bankrupt in 2024, burdened by liabilities of at least 10 million yen (about $63,250).
Bankruptcy numbers surge. Although the 72 bankruptcies represent a fraction of Japan’s 21,000 ramen restaurants, the 30% year-over-year increase is significant and marks an all-time high.
Reports of closures weren’t unexpected, with 49 bankruptcies recorded in July alone, nearly matching the total for all of 2023. Analysts warn that about 30% of the remaining shops are in poor financial health.
Rising costs behind the crisis. The crisis stems primarily from escalating costs. A Teikoku Databank study cited by The Washington Post found that the price of ramen ingredients—such as pork, noodles, and seaweed—along with labor and energy, rose 10% over three years. Other estimates suggest a 5% cost-per-customer increase between 2022 and 2023.
“Prices have been rising over the years, but the last three years or so have been unbelievable,” Tetsuya Kaneko, a ramen shop owner in western Tokyo, told The Washington Post.
A “perfect storm.” Kaneko observed that the restaurant industry faced a “perfect storm” of inflation, a weak yen, and the war in Ukraine’s impact on energy and grain supplies. These factors made it difficult for ramen shops to pass on cost increases to consumers, noted Norihiro Yamaguchi, a Japan economist at Oxford Economics.
Ramen for all budgets. As if the situation weren’t complex enough, ramen restaurants face another challenge: prices—or more specifically, the dish’s image in Japan and the psychological price barriers that influence it.
“Ramen has always been a staple for people with lower income or students and young people … so I don’t necessarily want ramen to become something out of reach for them”, Kaneko said.
The “1,000-yen wall.” A quick Google search reveals numerous references in blogs, websites focused on Japanese culture, and mainstream media outlets to the so-called “1,000-yen wall,” a price ceiling of about $6.30 at the current exchange rate. This figure represents the threshold that a basic bowl of noodles with broth, meat, and vegetables seldom surpasses.
However, the landscape has shifted. Confronted with the challenging new reality, many business owners face a tough decision: break through the 1,000-yen barrier or risk joining the 72 establishments that closed in 2024.
Kaneko told the Post he raised his prices by 50 yen to 1,000 yen in 2023, and others, like Taisei Hikage, have adjusted prices as well. Hikage opened his restaurant in 2023 with dishes priced at 750 yen ($4.75) but has since raised them to 950 yen ($6). He apologized to customers on social media platforms for the increase.
Crisis, but with Nnuances. Despite record bankruptcies, the ramen industry is far from doomed. Japan’s 21,000 ramen restaurants continue to cater to both locals and the growing number of tourists.
Depending on their preferences, customers can find bowls priced well above 1,000 yen. For Japanese families mindful of their budgets, ramen continues to be a relatively affordable dining option.
Benefits and challenges. Last year, Nikkei reported that while more ramen shops are charging over 1,000 yen for their bowls, they remain a cost-effective choice compared to family restaurants, where the average bill is about 1,360 yen ($8.60), or conveyor-belt sushi shops, where the average is 1,190 yen ($7.50). Rising costs have similarly impacted other businesses, such as soba stands and tonkatsu restaurants, which are also widely popular.
Still, analysts at Teikoku Databank caution against complacency in the ramen industry. Despite increasing costs, the average price of a ramen dish remains below 700 yen ($4.50), making it difficult for businesses to fully absorb rising expenses for raw materials, labor, and electricity. Experts warn this could result in more bankruptcies in 2025, particularly among small and medium-sized outlets.
Images | City Foodsters | Yanhao Fang (Unsplash) | Christian Dala (Unsplash)
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