The impact of the end of the “cooperation money” is also a sudden increase in izakaya bankruptcies, “beyond the corona crisis”, labor shortages, soaring electricity bills, and increased operating costs are also causes for concern
“Izakaya” Bankruptcy Trends: Nationwide Corporate Bankruptcy Count May 2023
Teikoku Databank conducted a survey and analysis on the bankruptcy situation of “Izakaya”.
-Survey Results (Summary)-
Due to the impact of the end of the “cooperation money”, izakaya bankruptcies surged, and the “corona disaster” surpassed
Aggregation period: Until May 31, 2023 Aggregation target: Debts of 10 million yen or more Bankruptcy investigation agency due to legal liquidation: Teikoku Databank Co., Ltd.
[Image 1: https://prtimes.jp/i/43465/668/resize/d43465-668-c2ee870c8bd3850df613-0.jpg&s3=43465-668-034910b143c42f74d371fce693a25b4b-705×668.jpg] Bankruptcies are rapidly increasing at the pace of “beyond the corona disaster” at izakayas that have regained their vigor due to the transition to the 5th class of Corona. There were 88 bankruptcies of izakaya, including yakitori restaurants, between January and May this year. In addition to increasing by 40% from the previous year, it is more than the same period in 2020, which was greatly damaged by the corona disaster. If this pace continues, the number of izakaya bankruptcies in 2023 could surpass the cumulative total of 20 years (189 cases) immediately after the corona crisis and set a record high. The year 2023 is characterized by an increase in small-scale izakayas in particular. About half of the bankruptcies of small izakaya with capital of less than 1 million yen occurred in 2011. Compared to 2020-2022, which was supported by generous public support such as short-time cooperation grants, compensation, and employment adjustment subsidies that supported the severe management of the corona disaster, it has remained at the highest level since before the corona crisis. . In a situation where the main business has not been able to get out of the slump since the corona disaster, public support such as short-time cooperation, which was a reliance, was discontinued one after another. It is believed that many incidents occurred under the surface, mainly in pubs.
At present, the number of customers at izakaya is returning as movement restrictions are lifted. On the other hand, with the establishment of new drinking styles such as “home drinking,” demand for banquets, etc. continues to be in a severe phase. Store operating costs, such as food prices, labor costs to secure part-time jobs, and electricity bills, are also soaring. Izakaya’s winning or losing, which was difficult to see in the corona disaster, is likely to progress further in the post-corona phase.
[Image 2: https://prtimes.jp/i/43465/668/resize/d43465-668-1aae6f68d776ee3ed0b1-0.jpg&s3=43465-668-e3d58e53344557b148633d6b985bfa9c-699×664.jpg]
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