For most tourists to Japan these days – especially those who earn in USD – the price of restaurant food here is ridiculously cheap. That’s partly because restaurants like ramen shops have worked assiduously to keep costs down. However, with prices rising across the board, more ramen joints are throwing in the towel and emphasizing quality over price.
2200 yen for soba? It’s happening
TBS News Dig reports on one ramen shop, Ginza’s Hachigo (八五), that kept its ramen to around 850 yen (USD $5.42) for years. However, with the prices of gas, rent, and ingredients all rising, its owner felt he could no longer keep that price point. Owner Matsumura Koshi told TBS News he had to increase prices to “get the flavor I wanted.”
These days, Hachigo sells a luxurious-looking bowl of ramen in a duck and chicken soup broth with Japanese bay scallops, sun-dried tomatoes, and ham for 1200 yen, or around USD $7.65. The broth itself takes 6.5 hours to simmer before it’s ready.
The store also offers a Chinese-style soba for 2200 yen (USD $14.03) made with a truffle and foie grasfilling. While it’s Hachigo’s most expensive dish, it’s also its most popular.
Selling quality over quantity
Food critic Yamamoto Takeshi once famously said that, if it’s more than 1000 yen, no one will buy it. That statement’s been a maxim of the ramen industry ever since. Many shops stay below that 1000 yen price point for fear of driving their customers to the competition.
But that was 20 years ago. The global pandemic, the war on Ukraine, and Japan’s weak currency have led to an unprecedented spike in prices. And real wages have remained stagnant the entire time. The result is that more ramen shops than ever are going out of business.
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As a result, an increasing number of ramen shops are focused, not on quantity, but quality. Shops like Ramen Break Beats in Tokyo’s Meguro sell bowls on a reservation-only basis for around 2000 yen apiece.
The good news is that it appears to be working. TBS reports long lines outside of Hachigo throughout the day. And stores like Ramen Break Beats and Dev-chan in Takanobaba report no serious loss of business since going high-end. To the contrary, the shops are gaining more attention thanks to their commitment to quality. Ramen Break Beat’s attention to detail, for example, earned it a mention in the 2024 Michelin Guide.
The impact of tourism
Travel to Japan is also impacting the prices of ramen (and every other dish you can get at a restaurant). Over three million tourists are arriving every month currently, many fulfilling a lifelong dream of seeing this country they’ve heard so much about. It helps, of course, that Japan’s weak yen makes the already low prices for food here even lower.
As more tourists stream in, more shops in tourist areas are maximizing their profits by raising their prices. In tourist traps like Niseko, tourists don’t think twice about paying over 3000 yen (USD $19.13) for a bowl of noodles that would go for under 1000 yen elsewhere.
Unfortunately, the price hikes also impact locals who earn in JPY. As a result, some experts have floated the idea of establishing a two-tier pricing system where tourists pay more than residents. However, so far, it doesn’t seem like many restaurants are biting.
Will people pay 1000+ yen for ramen? All signs points to “yes”
The question is: will people in Japan who are already struggling pay over 1000 yen for a bowl of ramen?
TBS News Dig did an informal survey of 105 people on the streets of Tokyo. Their answer: Yes, absolutely. While around 20% said they wanted prices to remain below 1000 yen, over half are willing to pay between 1000 and 1500 yen. A smaller percentage are willing to shell out even more.
Generational factors likely play a part in whether someone’s willing to spend more for ramen or not. A 60 year old interviewed by TBS said that, if they had to pay over 1000 yen for ramen, they’d just eat something else. Meanwhile, people in their 40s and 20s said they’d be willing to pay more for a luxurious bowl as a “treat.”
In Hachigo’s case, it helps that Matsumura’s shop is in Ginza. No one expects prices in Tokyo’s lux shopping center to be bargain-basement. Ginza is already home to a number of high-end cafes and restaurants.
Not everyone’s on board with the “quality over quantity” push. Hanaichi, run by Ito Aya in Nerima City in Tokyo, says she wants to raise prices but is afraid it’ll drive customers off. As a result, she keeps the store’s bowl of standard shio ramen at 990 yen (USD $6.31)
However, there are clear cracks in the 1000 yen wall. It’ll be interesting to see how long it holds.
Sources
ラーメン1杯いくら払える？3500円の高級ラーメンも…お店は「1000円の壁」に苦慮【Nスタ解説. TBS News Dig via YouTube
