Coronavirus: Tokyo’s ramen shops struggle as more Japan eateries go bust amid pandemic

Small restaurants operators are among the businesses hardest hit by the pandemic as they struggle to price in social distancing curbs on capacity

While some owners have opted for dynamic pricing, there are others who would rather pull down the shutters than push up prices

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Japan’s small restaurants operators are among the businesses hardest hit by the pandemic. Photo: Bloomberg

Published: 12:00pm, 12 Nov 2020Updated: 2:44pm, 12 Nov 2020

Covid-19 and social distancing measures are forcing some owners of Japan’s tiny noodle shops to consider either pushing up prices or pulling down their shutters.

The pandemic is upending a finely balanced business model that depends on serving quick, cheap fare to customers eating elbow-to-elbow.

While some proprietors are finally embracing the need to get creative with pricing, there are others who would rather shut shop than force their regulars to swallow a more expensive bowl of ramen.

The continued reluctance to raise prices suggests Japan remains far from dispelling a deflationary mindset among consumers and companies, even after more than seven years of massive central bank stimulus. That spells trouble amid renewed concern of a return to deflation as key consumer prices continue to fall.

Small ramen chain Kouraku Honpo is one of the many noodle shop operators looking for light at the end of the Covid-19 tunnel.

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