“If we raise prices, customers will leave, but if we don’t, we’ll go bankrupt” – The reality that is driving Japan’s restaurants into a corner

https://news.yahoo.co.jp/expert/articles/30777ddcaad86b47b786a52f6d675948853ea2a6

13 Comments

  1. And yet the government is currently busy with anti foreigners sentimental now instead of tackling the increase of food prices.

  2. I see this issue of “cant raise prices” fucking everywhere, its one of the most frustrating things in biz dev and, straight up, I welcome the failure of most of the businesses that “can’t” do it.

  3. There is always the third way: simply stop voting LDP. LDP is what has been driving prices up and weakening the yen for the past 14 years or so.

  4. It means becoming a poor country.

    Once i read about wages in Japan currently, they are simply too low. I don’t understand people arguing about the low conversion rate of the Yen and so on. It’s not that the “Yen is low”, it’s just that Japan is a relatively poor country compared to most other nations that are considered developed. This is especially true for a country dependent on importing ressources. Russia can maybe pull that phrase, since they can be self-sufficient on so many things, but not a country like Japan.
    Arabs don’t care that “the yen is too weak” to buy the same amount of oil, nor do foreign farmers for food. For them, you have simply gotten a poorer country.

  5. ThrustmasterPro on

    The trick is to have 1 price for Japanese Ana one price for Chinese, I mean foreigners…

  6. SeveralJello2427 on

    Look everyone abroad is raising their prices and coming or buying from Japan at a discount.
    Unless your business is not relying on anything foreign you’re going to be squeezed anyway.

  7. Cultural-Pattern-161 on

    The business isn’t viable. Maybe go do something else?

    There are millions of businesses that aren’t viable. This is not irregular or surprise in anyway.

  8. ObviousEconomist on

    Japan needs a weak yen to keep the foreign investments going.  LDP doesn’t care about the inflation it brings, and tbh the alternative of a return to deflation may be much worse.  It’s a difficult issue to solve.

  9. Restaurants depend too much on external factors. Like with the minimum wage increases and then also some vital resources going up in price – you don’t really have a choice.

    Unfortunately Japan was spoiled by living without inflation for a long, long time so Japanese customers are very resistant to price increases.

    So yeah, no way out. Or keep going and operate at a loss for however long it goes.

  10. Its no problem. Just charge foreigners double the price. Lots of money to be made, or so they would have you believe.