Global Japanese Restaurant Footprint Shrinks for First Time, Driven by China’s Economic Woes
The once-unstoppable expansion of Japanese restaurants across the globe has encountered its first significant setback. A recent government survey reveals a notable decline in the number of Japanese eateries operating internationally in 2025, marking a reversal of a long-standing growth trend. This downturn is largely attributed to a sharp contraction in China, a key market for Japanese cuisine, grappling with its own economic challenges.
The biennial survey, conducted by the Ministry of Agriculture, Forestry and Fisheries since 2013, found that the total number of Japanese restaurants abroad stood at approximately 181,000 in 2025. This figure represents a decrease from the record high of 187,000 recorded in 2023.
China Leads the Decline
The most significant drop was observed in China, which historically hosts the largest concentration of Japanese dining establishments outside of Japan. The number of Japanese restaurants in China plummeted by around 15,260 from 2023 levels, settling at approximately 63,500. This constitutes a substantial decline of nearly 20 percent.
The economic headwinds in China are a primary driver of this contraction. The nation’s economy has been impacted by several factors, including:
- Weak Domestic Demand: Consumers are showing reduced spending power, impacting various sectors, including the dining industry.
- Property Industry Crisis: Ongoing issues within the real estate sector have created broader economic uncertainty and dampened consumer confidence.
- High Local Government Debt: Elevated debt levels among local governments can constrain public spending and investment, indirectly affecting business environments.
Global Distribution Remains Significant
Despite the overall decline, China continues to be the leading country or region for Japanese restaurants abroad. Following China, other significant markets include:
- United States: Approximately 26,360 eateries
- South Korea: 19,800 establishments
- Mexico: 7,430 locations
It is important to note that even with the recent decrease, the global presence of Japanese restaurants remains robust. The 2025 figure is more than triple the 55,000 establishments recorded in 2013, illustrating the remarkable growth achieved over the past decade.
Growth Pockets Offer a Silver Lining
While Asia, particularly China, experienced a downturn, other regions have shown promising growth, helping to offset the overall decline.
Surging Demand in Central and South America
Central and South America emerged as a significant growth area, with the number of Japanese restaurants increasing by approximately 20 percent, adding around 2,400 new establishments. This surge is attributed to:
- Rising Popularity of Japanese Pop Culture: The global appeal of anime, manga, and other aspects of Japanese pop culture has fostered a greater appreciation for the country’s cuisine.
- Increased Interest in Japanese Cuisine: As cultural awareness grows, so does the demand for authentic Japanese dining experiences.
Middle East Embraces Healthy Eating
The Middle East also witnessed a positive trend, with Japanese restaurant numbers growing by about 20 percent, or approximately 300 locations. This expansion is linked to:
- Growing Health-Consciousness: An increasing awareness of healthy eating habits has led consumers to seek out cuisines known for their nutritional value, such as Japanese food.
- Desire for Diverse Culinary Options: The region’s evolving palate and demand for international flavors contribute to the growth of Japanese dining.
The compilation of this report, based on data from the Ministry of Foreign Affairs, aligns with the Japanese government’s strategic objectives to bolster the export of Japanese food products. The number and geographical spread of overseas Japanese restaurants serve as a crucial indicator for assessing the success and uptake of these food exports. The current trends suggest a need for continued support and adaptation in key markets, while also highlighting opportunities for further expansion in regions showing robust growth.
