In the first half of 2025, 25 ramen shops in Japan went bankrupt. That’s a drop of 24.2% compared to the same period in 2024, which had a record 33 bankruptcies. Although the number went down, it was still the second-highest ever.
The total debt from these bankruptcies was about 1.657 billion yen—23.8% more than last year. More shops had large debts over 100 million yen, showing a shift from mostly small businesses to slightly bigger ones getting affected.
Most of the bankruptcies (88%) were caused by poor sales. Ramen shops are struggling because of rising costs for ingredients, labor, and utilities. But raising prices too quickly risks losing customers, so many are stuck.
During the COVID-19 pandemic, government support helped keep ramen shop closures low. But after that support ended, combined with rising costs and a weak yen, bankruptcies surged in 2024 and stayed high in 2025.
Most of the failed businesses were small, with less than 100 million yen in debt and capital. The Kanto region had the most bankruptcies (11), followed by Kinki and Chubu with 5 each.
Almost all closures (96%) were through bankruptcy, with just one using civil rehabilitation.
The biggest single case in 2025 was a company in Okayama that ran multiple restaurants and went under with about 434 million yen in debt.
Ramen shops are easy to start with little money, so there are many new entrants. But the industry is highly competitive and sensitive to trends and costs. Without better operations, unique offerings, or smart pricing, many more ramen shops could be forced to close.
by MagazineKey4532