Restaurant Bankruptcies Reach Record High. 2025 Closure Trends and the Current State of the Fixture Transfer Market [Nagoya Edition]

In 2025, the number of restaurant bankruptcies reached a record high. As more business owners consider closing their doors, significant changes are occurring in the fixture transfer market.

To conclude, restaurant bankruptcies in 2025 reached 900 for the full year, marking a record high. At the same time, demand for existing restaurant properties is rising, and the fixture transfer market is becoming more active.

This article explains the 2025 restaurant closure trends and the current state of the fixture transfer market.

900 Restaurant Bankruptcies in 2025: A Record High

According to a survey by Teikoku Databank, bankruptcies of restaurant operators in 2025 (liabilities of 10 million yen or more, legal liquidation) totaled 900, an increase of 0.7% or 6 cases from the previous year (894 cases).

This is the highest number on record. 458 cases were recorded in the first half alone, and the annual total reached the 900-case level for the first time.

Background of the Increase in Bankruptcies

The factors behind the increase in restaurant bankruptcies are complex.

In addition to profit margins being squeezed by soaring food and utility costs and wage hikes, it is analyzed that the number of bankruptcies and closures is expected to remain high, especially among small and medium-sized restaurants that cannot easily raise prices amid intensifying competition.

The following three points have a particularly significant impact.

• Continued surge in food costs

• Rising labor costs (minimum wage increases)

• Increased rent burden, especially in urban areas

Bankruptcy Trends by Business Category

Looking at the data by business category for the first half of 2025, the trends become clearer.

| Business Category | Number of Bankruptcies (First Half) | Year-on-Year |
|---|---|---|
| Pubs/Beer Halls (Izakaya) | 105 cases | -6.3% |
| Japanese Restaurants | 46 cases | +53.3% |
| Chinese/Oriental Restaurants | – | +12.8% |
| Curry Shops/Ramen Shops, etc. | – | Increasing trend |

The sharp increase in Japanese restaurants is particularly noteworthy. Teikoku Databank analyzes that "the decline in group customers, the rise in budget-conscious behavior, and the reduction in corporate entertainment demand due to cost-cutting measures may have acted as headwinds."

The izakaya sector also continues to see a high number of bankruptcies, remaining at a high level of over 100 cases for three consecutive years.

What is the difference between bankruptcy and business closure?

Here, I would like to clarify the difference between "bankruptcy" and "business closure".

Bankruptcy: Cases leading to legal liquidation (bankruptcy, civil rehabilitation, etc.) due to business failure
Business Closure: Cases where the business owner decides to terminate operations in a planned manner

The 900 cases reported by Teikoku Databank refer to "bankruptcies." On the other hand, if planned "business closures" are included, it is estimated that the actual number of restaurants closing is several times higher.

In other words, there is currently a large number of restaurant owners in the process of closing down.

The "wasteful" reality that occurs during bankruptcy and business closure

When a restaurant closes, many owners face the following problems:

1. Removal costs are higher than expected

Choosing to vacate a skeleton property results in removal costs of 1 to 3 million yen for a 20-tsubo store. If cash flow is tight just before bankruptcy, these costs become a significant burden.

2. Closing down without utilizing the value of fixtures

Driven by the urgency to "get rid of it," some owners remove fixtures without checking their value. This creates a structure where they pay removal fees to dispose of fixtures that were actually worth millions of yen.

3. Security deposit settlement is less than expected

Depending on the depreciation terms, there are cases where almost no security deposit is returned. If the contract is not checked in advance, cash flow becomes tighter than expected after moving out.

The fixture transfer market is becoming more active

While bankruptcies and business closures are increasing, the need for "inuki" (turnkey) properties is growing among entrepreneurs aiming to open new businesses.

There are three reasons for this.

1. Reduction of initial investment

The biggest hurdle for a new opening is the initial investment. Interior construction from a skeleton property can cost 5 to 20 million yen, but with an inuki property, you can open with just the fixture transfer fee plus simple renovations, keeping the initial investment to less than half.

2. Speed to opening

It takes 3 to 6 months of construction to open a new business from a skeleton property. With an inuki property, there are cases where you can open within one month.

3. Utilization of existing equipment

Commercial kitchen equipment costs millions of yen when new. Since fixtures transferred via inuki often include these, capital investment can be significantly reduced.

Because this demand exists, the option of "selling fixtures" has become a realistic one for owners who are closing down.

Current state of the fixture transfer market in the Nagoya area

Looking at the fixture transfer data handled by VELETA within Nagoya City, market trends are as follows:

• Buyers are easier to find in central areas such as Naka-ku, Chikusa-ku, and Meito-ku

• Properties that have been in operation for 3 to 5 years are more likely to close at a high price because their fixture value remains

• Versatile business types such as izakayas, cafes, and ramen shops have stable demand

• Small properties with rent under 300,000 yen are also easier to find the next tenant for

Amidst the increase in bankruptcies and business closures, owners who choose to act early and leverage the value of their fixtures tend to secure more money in the end.

Once you start thinking about closing, first check the value of your fixtures

At the stage where you start feeling that "it's difficult to continue," the first thing you should check is the market price for your fixtures. The longer you operate, the lower the fixture value becomes, so the sooner you make a decision, the more advantageous it will be.

With VELETA's free AI assessment tool, you can instantly calculate the estimated fixture transfer fee and the remaining security deposit just by entering the address, rent, and equipment.

👉 Know in 1 second: Fixture Transfer Fee AI Assessment | VELETA

Summary

• Restaurant bankruptcies in 2025 reached 900, hitting a record high

• If business closures are included, the actual number of store closures is even higher

• The background is the increased burden of food costs, labor costs, and rent

• On the other hand, demand for existing-fixture properties (inuki) is rising, and the fixture transfer market is becoming more active

• Once you start thinking about closing, checking the value of your fixtures early is the key to maximizing your remaining funds

👉 Related article: What is the market price for fixture transfers in Nagoya? Explained with 300 transaction data points
👉 Related article: When closing a restaurant, what happens to the fixtures? A thorough explanation of the differences between inuki (existing-fixture) and skeleton properties
👉 Related article: Restaurant Closure Preparation Checklist [Complete Version: From Fixture Transfer to Move-out and Contract Termination]

Source: Teikoku Databank, Ltd. "Restaurant Bankruptcy Trends (2025)"

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Specializing in real estate brokerage, restaurant and beauty salon fixture transfers, and furnished property brokerage