Japanese media AeraDot reported on the 24th that the number of cafe bankruptcies in Japan reached an all-time high last year.
According to a survey by Daikoku Data Bank released in January, there were 72 nationwide cafe bankruptcies in 2023, more than doubling from 34 the previous year. It said this was the highest ever.
This phenomenon is said to be due to the overlapping problem of low prices and low turnover. On top of that, as more people work in cafes, more customers stay for a long time with a cup.
“I go to a cafe because I can’t concentrate at home on days when I work remotely,” said a 28-year-old IT industry office worker whom the media met. “When I’m in the office, I can’t work because I’m asked to do odd things, but I can concentrate at a cafe and stay forever if I order a cup of coffee.” He orders a cup of coffee, which costs about 420 yen (about 3,900 won), and spends about four hours.
Meanwhile, web designer Kumi Watanabe also spends an average of three to four hours at cafes and sometimes more than 10 hours. “I sometimes order a cake because I feel sorry, but it doesn’t cost 1,000 yen (about 9,300 won) to order coffee and cake,” he said. “Cafes provide an environment where people can focus.”
In the past, Japanese cafes used to have low unit prices as many customers only use a relatively short period of time, making up for the sales volume at a turnover ratio. However, as the turnover ratio is decreasing, cafe operations are also threatened. This trend is particularly noticeable in cities.
Under these circumstances, some cafes operated with a 90 to 120-minute usage time limit. At the cafe, when a customer fills the time, an employee comes up and tells them that “time is up.” However, it is reported that this leads to a vicious cycle in which customers who reduce the use of the cafe appear.
SALLY LEE
US AISIA JOURNAL
