Japanese Pubs Closing: Updated Dec. 13, 2024.

Japan's Izakayas close at faster pace than during COVID-19 amid inflation

Article Source: https://mainichi.jp/english/articles/20241208/p2g/00m/0bu/020000c

Ideas;

There could be many reasons why the izakaya style operators are going out of business. The same situation is happening in South Korea, as people are just not going out to drink as much as they used to.

And then add in inflation and some consumers might be cutting back on going out as they stay at home more and less going out during the week.

But the same with many different restaurant chains in the US, and consumers change their style of eating out and where they wan to go to, and then of course, in Japan add in the inflation factor.

All of the above variables play a role in pubs, bars, and restaurants closing these days, globally, as its not just a Japan situation but a global situation.

For example, the restaurants that were popular 20 or 30 years ago are not popular today, and most of them have gone out of business.

As consumer behavior changes malls, restaurants, bars, and pubs, are on notice to innovate or go out of business.

While online shopping has nothing to do with izakaya style pubs, its does have a huge affect on malls and other stores where online shopping, along with changing consumer behavior, is forcing many malls to close these days.

And yes, izakaya style pubs need to innovate or be left behind, as consumer behavior never stays the same and is always changing. 

The only constant in business is change and companies need to know what to look for and what to do to change to stay in business.

Its not just about the bottom line but looking for changes in consumer behavior, looking for clues to the changes in consumer behavior that might affect a service companies business.

Some companies might be able to acquire other companies and or merge with other companies but some operators might not be able to do it.

The Watami Co. acquired the Japanese unit of the Subway sandwich chain and plans to expand from 200 to 3,000 outlets. 

They need to be careful that they don't expand too fast and they might over-extend themselves if they aren't careful.

Have a nice day!