[Teikoku Databank Co., Ltd.] “Cheap tofu” has reached its limits. Bankruptcies and closures of tofu shops are rapidly increasing. “Prince students” are unable to make profits due to low profit and high sales. Half of them are operating in the red.
*Teikoku Databank Co., Ltd.*
Press release: August 4, 2024
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“Cheap tofu” has its limits. Bankruptcies and closures of tofu shops are rapidly increasing. “Prince students” are unable to make profits due to low profit and high sales. Half of them are operating in the red.
*Bankruptcy trends of “tofu shops” (January-July 2024)*
photo by PIXTA
Teikoku Databank Co., Ltd. conducted a survey and analysis of the bankruptcy trends of “tofu shops.”
-Survey results (summary)-
1. “Cheap tofu” has its limits: Bankruptcies and closures of tofu shops are rapidly increasing
2. “Priority student”: No profit due to low profit and high sales; half of the businesses are in the red
Collection period: Until July 31, 2024
Target of calculation: Bankruptcies due to legal liquidation, suspension of business, and dissolution of companies with debts of 10 million yen or more
Research institution: Teikoku Databank Co., Ltd.
*Survey results will also be posted on the following website https://www.tdb.co.jp/report/index.html
Tofu, which has supported the dining table as a “value-priced product” along with eggs and bean sprouts, is experiencing a rapid increase in the number of manufacturers going bankrupt and going out of business. From January to July 2024, there were a total of 36 bankruptcies (debts of 10 million yen or more, legal restructuring) and closures of tofu stores that produce packaged tofu for retail stores such as supermarkets. This will exceed the previous year’s record high in 2023 (46 cases in total), and there is a possibility that the annual number will reach the 60 level, which is significantly higher than the previous year.
Business conditions for tofu shops continue to be difficult, with the cost of making tofu increasing and the difficulty of passing on prices. Although the price of imported soybeans such as those from the United States, which are often used in mass-produced tofu, has stabilized, it remains high due to the effects of the weaker yen, as well as the cost of electricity, gas, logistics, and containers, which are often made of plastic. Costs have also increased. On the other hand, like other fresh foods, tofu does not have a long shelf life, and as it is the centerpiece of a “bargain” item, there is a lot of pressure from retailers to lower its prices. In addition, price competition is intensifying with cheap private label tofu products that have rapidly emerged in recent years at supermarkets, which are major sales destinations, and with cheap mass-produced products from major manufacturers.
In fact, when we calculate the soybean cost rate per block of tofu, it remains at a high level, currently hovering around 10%, higher than before the coronavirus. On the other hand, there are few cases in which such cost increases can be passed on to sales prices, and about half of tofu shops are in the red. The deterioration of the business environment due to “low profits and high sales,” combined with management issues such as a lack of successors, is thought to be the reason for the rapid increase in the number of bankruptcies and closures of tofu stores.
Faced with the sign of “excellent price students,” who have supported the dining table through low prices, if people do not improve their understanding of the appropriate price of tofu, there is a possibility that more tofu shops will go bankrupt or go out of business.