Japan's izakaya face rising costs and changing tastes as demand declines

Japan's izakaya, informal pubs known for shared plates and drinks, are facing significant challenges. In 2023, 203 izakaya operators declared bankruptcy, surpassing the total for 2020, as rising costs and changing consumer habits impact demand. Despite the end of pandemic restrictions, many customers prefer cheaper nights at home. Economic pressures have led to higher prices for food and drinks, with about 40% of izakaya losing money in the past year. Ramen shops are also struggling, with nearly 34% reporting losses. Younger generations are drinking less and seeking different dining experiences, contributing to the decline of traditional izakaya culture in Japan.