Bankruptcies in 'Food and Beverage Retail' Totaled 358 in FY2025, Increasing for the Fourth Consecutive Year

Teikoku Databank, Ltd. conducted a survey and analysis of bankruptcy trends among 'Food and Beverage Retail' business operators.

SUMMARY

In fiscal year 2025, bankruptcies in food and beverage retail amounted to 358 cases, exceeding the 321 cases of the previous fiscal year and becoming the second highest number ever recorded, marking an increase for the fourth consecutive year. Under severe conditions of soaring ingredient and utility costs and labor shortages, the number of bankruptcies is expected to remain at a high level, especially among small businesses that cannot easily implement price increases or wage hikes.

Aggregation period: January 1, 2000 to March 31, 2026 Target for aggregation: Bankruptcies with liabilities of 10 million yen or more, by legal liquidation

Bankruptcies in 'Food and Beverage Retail' Totaled 358 in FY2025, Increasing for the Fourth Consecutive Year

The number of bankruptcies (liabilities of 10 million yen or more, legal liquidation) in food and beverage retail for fiscal year 2025 was 358 cases, an increase of 37 cases, or 11.5%, from the previous fiscal year (321 cases). This was the second highest number ever, following the record high of 375 cases in fiscal year 2013, and marked an increase for the fourth consecutive year. Total liabilities amounted to approximately 41.294 billion yen, a 46.9% increase from the previous fiscal year (approximately 28.117 billion yen).

The largest liability was approximately 5.903 billion yen from Jupiter Coffee Co., Ltd. (Tokyo), which dealt in imported foods, freshly roasted coffee beans, etc. (January 2026, Civil Rehabilitation Law).

Looking at the breakdown by business type, 'prepared food retail', mainly engaged in bento manufacturing and deli takeouts, accounted for the largest number at 104 cases, an increase of 10 cases, or 10.6%, from the previous fiscal year (94 cases), exceeding 100 cases for the first time in a full year and reaching a record high. In addition, 'confectionery retail (manufacturing and retail)', mainly focused on manufacturing and selling Japanese and Western sweets, also saw 65 cases, an increase of 14 cases, or 27.5%, from the previous fiscal year (51 cases), updating its record high for the second consecutive year. By scale, small-scale bankruptcies with liabilities of less than 50 million yen occurred in 225 cases, accounting for 62.8% of the total. Amid intensifying price competition with large companies and competitors, many small businesses that could not pass on the sharp rise in operating costs such as raw material prices, personnel expenses, and utility costs went bankrupt. 'Various food retailers', which include supermarkets, remained at a high level with 32 cases, but due to price pass-through driven by inflation, this was a decrease of 7 cases, or 17.9%, from the previous fiscal year (39 cases).

By number of employees, 'fewer than 10 people' was the most common with 320 cases, accounting for about 90% of the total. By business history, '30 years or more' was the most common with 131 cases. Moving forward, the anticipated consumption tax reduction, expected to boost consumption, faces challenges such as the burden of changing price displays and system modifications when implemented. Furthermore, opaque factors surrounding the industry, such as further price hikes due to the Middle East situation and supply chain disruptions, still abound. Consolidation is expected to progress, especially among small businesses, and the number of bankruptcies is projected to remain high.