Japan’s iconic ramen noodle eateries have been hit hard by rising costs in 2024, with a record number of businesses folding under the strain. According to Teikoku Databank, insolvencies in the ramen sector jumped more than 30% this year, reaching 72 cases, up from 53 in 2023. The businesses involved had accumulated liabilities of at least JPY10mn (about $63,000), highlighting the deep financial struggles in the industry, as reported by Kyodo News.

Ramen, long known for its affordability, has become a staple meal for workers, students, and late-night revelers, with many shops still offering bowls under JPY700. Yet, as ingredient prices surged by over 10% in 2024 compared to 2022, and utility and personnel expenses also spiked due to labour shortages, ramen operators have been forced to raise prices. Despite the price hikes, some consumers remain hesitant, fearing the loss of ramen’s reputation as a cheap and cheerful dining option.

Takatoyo Sato, the manager of Menkoi Dokoro Kiraku in Tokyo’s Shimbashi district, raised prices at his shop in May 2024. His popular shoyu ramen now costs JPY950, up from JPY780 in 2021, a move that Sato claims was essential for survival. "If I hadn't raised prices, we’d have been in the red," he said. Despite the necessity of these changes, he acknowledged that his loyal customers were not entirely pleased. "Custom definitely fell after," he admitted, adding that people often felt that ramen should remain cheap, despite the rising costs of doing business.

With around 34% of the 350 ramen eateries surveyed by Teikoku Databank reporting losses in fiscal 2023, the outlook for small and medium-sized businesses is bleak. While large chains may have more leeway to adjust their pricing, many independent operators are hesitant to raise prices further, fearing a backlash from customers who view ramen as an affordable indulgence.

Looking ahead to 2025, Teikoku Databank anticipates that more bankruptcies could follow, particularly as many smaller ramen shops remain unwilling to increase prices. For now, owners like Sato can only hope that costs stabilise and that diners become more accepting of the new pricing realities.