Japan's izakayas, once a good staple of after-work socialising, crippled by COVID-19 pandemic

25 June, 2020
Japan's izakayas, once a good staple of after-work socialising, crippled by COVID-19 pandemic
Japan's after-work drinking picture features been disrupted by the COVID-19 pandemic, forcing its often jam-loaded "izakaya" dining pubs to reinvent themselves to survive.

For many years, izakayas - a mainstay of Japanese functioning culture and late-nighttime drinking - have thrived by offering cheap drinks to thirsty office employees in cozy settings.

Despite the fact that lockdown measures to contain the virus were lifted in later May, izakayas are facing an existential crisis mainly because more people work from home and social-distancing guidelines force virtually all eating and drinking outlets to halve their seating.

"I used to take in out about twice a week. Any longer," said 26-year-old Erika Aoi. "It had been nice to hang out with co-workers after work, so it's sad the lifestyle is shrinking."

Hitoshi Yaosaka's retailers are among those hit hard. The 10 izakayas he runs in Tokyo have observed customer numbers return to only a third of their pre-pandemic amounts, with fewer personnel commuting to nearby offices.

"If drinking out isn't considered welcome, izakayas will move under. There's a fairly good prospect Japan's izakaya traditions will die down," says Yaosaka, who warns that tiny izakayas like his aren't lucrative if the already-little establishments cut counter chairs by half.

The federal government hasn't given a timeframe for how prolonged the restrictions will last. But officials warn they need to stay static in place until a highly effective vaccine is produced. That may prod more corporations to permit employees to work from home and reduce opportunities for drinking outings with far-flung colleagues.

Restaurants constitute 16 % of coronavirus-related bankruptcies in Japan up to now, according to info from think container Tokyo Shoko Research.

The gloom could put a dent in consumption for months if not years, and prolong Japan's already deepening recession.

"Consumption may rebound somewhat found in June but will need a long time to come back to pre-pandemic amounts," explained Yoshiki Shinke, chief economist at Dai-ichi Lifestyle Research Institute.

The disappearance of social drinking has hit restaurant and izakaya chain operators like Colowide, which is shutting 7 % of its 2,665 outlets. Rival Watami can be closing 13 % of about 500 outlets.

Takeshi Niinami, a federal government adviser and brain of Japanese beverage maker Suntory Holdings, warns that a lot more than 20 % of bars and eating places could fail due to the pandemic.

"Given the existing coronavirus situation, what I'd like to see is for them to get it through the next 2-3 years until we are able to allow for even more noisy, intimate get-togethers," Niinami said.

Surviving that prolonged is no easy process for many izakayas in a shrinking industry. Some will be rethinking their business models.

Watami will open new wagyu beef restaurants targeting families and release a fried poultry delivery service.

Setouchi Lemon Shokudo, an izakaya around Tokyo's Nihonbashi organization district, was filled with office workers prior to the pandemic.

Now, social-distancing plans have forced the store to cut chairs to 30 from 50. Sales and visitor figures in June are still 30 % of what these were a year ago.

To create up for lost product sales, the shop bought a food vehicle to sell lunches to a larger range of customers. In addition, it started selling take-out dishes and food online.

Tadao Nakashima, CEO of Bears Corp, which owns Setouchi Lemon, will not expect business to recuperate this year.

"The pandemic provides shaken the foundation of our organization, which is to provide a location for face-to-face communication," said Nakashima, who has been around the izakaya organization for a lot more than two decades.

"We may need to think of a model it doesn't focus an excessive amount of on alcohol."
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