NOODLE SHOPS OF JAPAN FACE MASS BANKRUPTCIES

A significant number of public catering establishments in Japan are under the threat of bankruptcy. Experts believe that the COVID-19 pandemic has had a much greater effect on the restaurant sector of the state than the natural disaster of 2011, which caused an accident at a nuclear power plant and numerous casualties among the population. Then 800 companies went bankrupt in the country.

Kyodo agency, which has recently conducted a poll, reports that the number of bankruptcies in the Japanese food service market could reach record highs in 2020.

Many businesses were closed to prevent the spread of infection.

Experts from the Tokyo Shoko Research Firm note that in 11 months of 2020, 792 companies with debts of $ 96 thousand or more went bankrupt. This means that Japan, one of the world's leading economies, has an 8% increase in the number of insolvent companies compared to 2019.

Recently, the country's authorities have already reported the third wave of the pandemic and demanded to reduce the working time from service and catering enterprises. Such measures can lead to additional bankruptcies of numerous cafes, say the experts. First of all, according to analysts, the pandemic affects catering establishments that serve traditional dishes of the national cuisine or "ramen" branded wheat noodles, inexpensive fast food.

This year, 192 enterprises of this kind went bankrupt.

What is more, a significant number of restaurants (184 establishments) and drinking establishments, where the Japanese traditionally came to rest after a working day (162 enterprises), went bankrupt during the year.

According to analysts, the imposition of bans on restaurants by local authorities could increase the record number of bankruptcies. Even those businesses that had the opportunity to get loans at a zero rate, cannot find the funds to pay salaries to employees and promote their services in the catering market to boost sales, note the experts from Tokyo Shoko Research.