An increasing number of izakaya chains have been closing their Japanese pub-style restaurants. Since spring this year, five major izakaya chains have closed or decided to close a total of about 420 izakaya restaurants, or about 10%.
Customer numbers have been on the decline due to spread of the novel coronavirus, and especially those customers who might hold welcome or farewell parties for company colleagues at izakaya have also drastically decreased.
In the dining-out industry, a divide has appeared between companies with different paces of business recovery, as sales in fast-food and family restaurants, where many customers choose takeout, have been regaining ground lost to the outbreak.
The Yomiuri Shimbun conducted a survey on izakaya closures at five major chains. They are: Colowide Co. operating Amataro and other chains; Chimney Group; Watami Co.; Sanko Marketing Foods Co. operating Kinnokura and other chains; and SFP Holdings Co. operating Isomaru Suisan and other chains.
The number of restaurant closures include styles of restaurants other than izakaya that are operated by the companies.
Colowide's sales in September from its existing restaurants fell 22% from a year ago, marking the seventh consecutive month of decrease. The company plans to close about 200 restaurants, mainly those which are unprofitable, out of its about 2,700 outlets.
Watami plans to close 65 restaurants, including those of the Miraizaka chain, out of its about 490.
According to the Japan Foodservice Association, a business association of dining-out business companies, the overall total of sales of izakaya, fast-food stores and family restaurants in September fell 14% from a year ago.
Sales at izakaya restaurants showed especially large declines at about 47%. It is assumed that people have tended to shun izakaya compared with other dining-out businesses, as many izakaya are located in busy urban districts.
Sayaka Azuma, a senior analyst for food services at business researcher NPD Japan Ltd., said, "Sales fell more largely in izakaya restaurants near train stations, which were seen as good business locations, because of the novel coronavirus crisis."
On the other hand, Western-style fast-food stores such as hamburger chains showed relatively good performances. Fast-food sales in September rose about 3% from a year ago.
Among family restaurants, where an increasing number of customers get food to go, sales of those serving Chinese cuisines and yakiniku broiled meat have recovered to about 90% of levels a year ago.
A remarkable number of izakaya operators have been changing the style of their operations. Watami plans to transform 120 of its izakaya -- accounting for about 30% in the category -- into yakiniku restaurants.
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