Japan Ramen Eateries Hit Record Bankruptcies Amid Rising Costs

A record number of ramen eateries in Japan went bankrupt in 2024 as rising ingredient, utility, and labor costs outpaced price adjustments, Kyodo News reported.

Despite climbing costs, the average price of a bowl of ramen remains below 700 yen.

Insolvencies involving liabilities of at least 10 million yen ($63,000) surged over 30% to 72 cases in 2024, compared to 53 in 2023, according to Teikoku Databank Ltd. The traditionally affordable ramen business has struggled to reconcile its cost increases with customer expectations for low prices.

Despite climbing costs, the average price of a bowl of ramen remains below 700 yen, making price hikes challenging without risking ramen’s reputation as an "everyman" food.

For example, Menkoi Dokoro Kiraku, a noodle shop in Tokyo’s Shimbashi district, raised the price of its popular soy sauce-based ramen to 950 yen in May 2024, up from 780 yen in 2021, reflecting tightening margins.