Sushi Restaurant Bankruptcies Rise Again: Despite Record-Low Deficit Rates, 'Craftsman Shortage' Becomes Bottleneck

Teikoku Databank Co., Ltd. has conducted a survey and analysis on the bankruptcy situation of 'sushi restaurants'.

SUMMARY

From January to June 2026, 16 bankruptcies were confirmed among 'sushi restaurants', exceeding the previous year's same period (11 cases) by 5 cases, or 45.5%. This suggests the annual total may rise for the first time in three years. Contributing factors include rising prices of sushi ingredients, a shortage of sushi chefs, and particularly in small neighborhood sushi restaurants, the aging of owner-chefs—often the sole skilled staff—and the lack of successors, forcing closures.

Survey Period: January 1, 2000 – June 30, 2026

Target of Survey: Bankruptcies involving liabilities of over 10 million yen and legal restructuring

Sushi Restaurant Bankruptcies Rise Again: Despite Record-Low Deficit Rates, 'Craftsman Shortage' Becomes Bottleneck

From January to June 2026, 16 bankruptcies were confirmed among 'sushi restaurants', exceeding the previous year's same period (11 cases) by 5 cases, or 45.5%. This suggests the annual total may rise for the first time in three years. While many restaurants continue to attract foreign tourists due to inbound demand, rising costs—especially seafood prices for sushi ingredients—combined with a shortage of skilled sushi chefs, have created challenges. In particular, small local sushi restaurants often rely on a single aging owner-chef as their only skilled staff, and the lack of successors is increasingly forcing closures.

When analyzing bankruptcies by scale, extremely small sushi restaurants with capital under 1 million yen accounted for 43.8%. This remains a high level compared to the past decade, with many small, affordable 'neighborhood sushi restaurants' going out of business in recent years.

The sushi restaurant industry has long benefited from strong demand from domestic and international tourists, allowing moderate cost increases to be offset by higher sales. However, recent shifts in inbound tourism show changing consumer preferences: from simply offering high-quality ingredients to demanding premium experiences such as tuna dissection shows. Additionally, in 2025, a surge in rice prices due to the 'Reiwa rice shortage', rising wholesale prices for fresh fish used in sushi, and soaring labor costs due to difficulties hiring sushi chefs and wage increases created a perfect storm. Sushi restaurants heavily rely on chefs' tacit knowledge in sourcing, preparation, and sushi-making, making talent development difficult. Moreover, constant talent poaching from other industries, large chains, and overseas, as well as chefs leaving to open their own shops, further strains staffing. As a result, restaurants unable to offer competitive conditions struggle to hire skilled chefs, leading to shortened evening hours—when average spending is higher—or more regular holidays, ultimately resulting in lower sales. In small neighborhood sushi restaurants, owners often serve as the de facto 'only chef', and their aging or lack of successors has increasingly become the final trigger for discontinuing operations.

Looking at financial performance, in the 2025 fiscal year, the proportion of sushi restaurants reporting deficits was only 18.8%, the lowest in the past 20 years. However, the proportion reporting declining profits rose to 33.9%, increasing for the fourth consecutive year. Even among profitable restaurants, a gap is emerging between those growing profits and those seeing margins gradually eroded. For neighborhood sushi restaurants caught between the 'low price and entertainment' model of capital-strong major conveyor-belt chains and the 'premium experience and luxury' appeal of high-end urban restaurants, 2026 will be a critical year testing whether they can attract customers without relying on inbound tourism.