In July of last year many regions of Japan adopted the same formula to raise their economies. The idea did not seem bad: if you get tourists as it is happening to the Japanese nation (monthly absolute record with three million last March), opportunities arise, and the ramen was a “must” for every tourist who boasts. The problem: that if everyone did the same and in each corner there was a ramen place, the opportunity became a battle. Thus, perhaps what has happened at the beginning of the year: bankruptcy throughout the country’s map. To this we must add a problem that nobody saw thousands of kilometers.
A cultural symbol. None of this would be news if we did not speak “of the dish” in capital letters of the nation, or one of them. Ramen is one of the most emblematic of Japanese cuisine and occupies a special place in the country’s culinary culture. Traditionally considered a basic and affordable food for students, workers and families with a tight budget, it represents more than a simple dish of noodles: it is a reflection of the accessible spirit of Japanese cuisine.
However, this symbol of modesty and practicality faces a growing challenge with the increase in operational costs and psychological barriers in prices, such as that “wall of 1,000 yen”, a symbolic limit that rarely crossed until bit.
The perfect storm. Since 2020, the costs of basic ingredients such as algae, noodles and onions have increased significantly, with a 10% rise in just three years. This adds to the increase in energy, the weakness of the Yen against the dollar and the supply problems caused by the war in Ukraine.
All pressures that have led to restaurants such as Tetsuya Kaneko and Taisei Hikage to make difficult decisions: increase the prices of their menus or face the possibility of closing. In many cases, Price increases, although modest, are accompanied by public apologies, reflecting the delicate balance between business sustainability and respect for customers.
And the other problem: meat. Yes, in addition to the rise of basic ingredients, the other fundamental problem is pork. Ramen restaurants in Japan are dealing with growing pressure due to the rise in animal prices, a key ingredient for its iconic chashu.
Denmark. The import prices of the European pig, particularly from Denmark, have risen 6% in the last year, reaching between 810 and 830 yen per kilogram. The reason? The increase here is also due to a combination of factors: as in basic ones, the feeding costs raised by the Russian invasion to Ukraine, but also because of the closure of processing plants in Europe, the weakening of the Chinese economy that has reduced The demand and the depreciation of the Yen that we comment, a whole that further imports imports.
The effects have been translated, again, in higher prices increases and finally in the restaurants menus, with many businesses breaking that psychological barrier of the 1,000 yen by a bowl bowl, which could scare away customers.
And Germany. It is the second big problem derived from meat. The recent detection of Afitosa fever in Germany has generated a new challenge, because although Japan no matter pork there, countries like South Korea and the United Kingdom did, and now they are resorting to alternatives in other European suppliers, what which increases pressure on global pig prices.
Using Brazil. Yes, this cultivation broth has made Japan resort to Brazil as a new supplier, tripling its imported pig imports from the country to 10,131 tons in November 2024.
However, the change does not seem to have mitigated the costs at all, since the price of the pig, along with the rest of the essential ingredients we were talking about at the beginning, such as pork fat, Nori, fresh noodles and green onions, follows up. Onions, for example, have experienced a 29% increase in the last year.
Impact and bankruptcy. The crisis not only affects ingredients. Nikkei had this week that labor costs and rentals have also increased, taking many small and medium businesses to the limit. In 2024, 72 Ramen restaurants with debts exceeding 10 million yen declared bankruptcy, marking a record and exceeding the levels reached during the Covid-19 pandemic in 2020. Not only that. About 30% of respondents by the firm Teikoku Databank reported losses, reflecting the difficult situation of the industry.
Answer and impact on consumers. Faced with this panorama, chains such as Yamaokaya have chosen to increase prices, but only from some menus, including Ramen with Chashu, while looking to keep prices under control in collaboration with their suppliers.
However, the measures do not seem to have been enough to relieve the financial pressure of many establishments, which struggle to balance quality, affordability and sustainability in a highly competitive market. Ramen, until recently an opportunity to raise economies from the nation, is taking many businesses to bankruptcy, threatening the road to a whole symbol of Japanese gastronomy.
Imagen | SODAI GOMI
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