Tokyo Shoko Research counted 118 izakaya bankruptcies in January–June 2026, a record for that period since 1989, and over 90% were firms with fewer than 10 staff. Owners cite rising food, utility and rent costs, and a fear that raising prices will drive customers away. Japan's planned cut in food consumption tax from 8% to 1% for two years (from April 2026) may pull diners toward supermarket ready meals. For a Thai small restaurant, the lesson is to watch menu costs closely and find a clear point of difference, since large chains are better placed to absorb these pressures.