Japan Restaurant Failures Hit Record High in 2020
Tokyo, Jan. 6 (Jiji Press)--The number of bankruptcies in the restaurant industry in Japan in 2020 totaled as high as 780, mainly due to the impact of the novel coronavirus epidemic, Teikoku Databank Ltd. said Wednesday.
The figure was the highest since the current survey method started in 2000. The data covered bankruptcies involving liabilities of 10 million yen or more.
The number of bankruptcies of pub and beer hall operators was the largest, at 189. The sector "was hit hardest by authorities' requests for shorter operating hours" and other factors related to the epidemic, a Teikoku Databank official said.
There were 105 failures among Chinese and other Asian food restaurant operators, followed by 100 among Western-style restaurant operators and 79 among operators of Japanese restaurants. About 80 pct of all bankruptcy cases involved liabilities of less than 50 million yen, highlighting the hardships facing smaller businesses amid the virus crisis.
The Japanese government is set to declare a fresh state of emergency over the epidemic in Tokyo and neighboring Saitama, Chiba and Kanagawa prefectures on Thursday. Bankruptcies of restaurant operators may increase if financial aid related to requests for business restrictions under the emergency declaration is insufficient, the Teikoku Databank official suggested.
[Copyright The Jiji Press, Ltd.]