Tokyo Restaurants Brace for a Devastating Tourist Season Without the Olympics

Note: Frank Striegl operates Tokyo Ramen Tours, a tour company connected to several sources in this story.

Two months ago, Tokyo’s hospitality sector was filled with hope for 2020. It had already been an exceptional year — inbound tourism to Japan had surged (up more than 250 percent since 2012) — and this momentum was set to peak with the Summer Olympic Games in July. The city’s 150,000 restaurants were gearing up for a massive influx of domestic and international visitors, anticipating nearly 10 million attendees, with Goldman Sachs projecting $5 billion in additional spending.

That sense of optimism quickly gave way to uncertainty and fear as COVID-19 began to spread globally. For a time, some residents of Tokyo held out hope that the Olympics might still proceed — it was months away. However, on March 24, the International Olympic Committee announced the games would be postponed for a full year, to July 2021. This, coupled with the national emergency declaration issued on April 7 — which allows restaurants to remain open but imposes limits on hours and operations — has dealt a crushing blow to an economy that had already contracted in Q4 of last year.

Like many of the world’s major streets today, Tokyo’s famous Omoide Yokocho (Memory Lane) in the bustling Shinjuku district looks eerily deserted. This narrow alley, usually alive with tourists flocking to its tiny bars and yakitori spots during the cherry blossom season, now resembles a ghost town, lined with shuttered establishments and hand-written “closed” signs taped to their doors. Reports indicate that bankruptcies in the hospitality sector are rising rapidly. Vendors at the renowned Tsukiji fish market have reportedly lost between 70-80 percent of their business, with one local sushi chef stating to CNN that the economic fallout has already exceeded that of the 2011 earthquake and tsunami.

While some restaurants have managed to adapt by offering delivery, the take-out culture in Tokyo isn’t as prevalent as one might expect. Although grab-and-go options are plentiful, there remains a strong tradition of home-cooked family meals, and many locals live in compact apartments, preferring to avoid the extra waste that comes with deliveries. Until recently, pizza and Chinese restaurants dominated the take-out scene, with many other establishments avoiding delivery due to concerns over food quality and safety. As businesses flocked to UberEats in March, the platform became crowded and fiercely competitive without significant growth in users.

For Mytouries that depended heavily on tourists, particularly with the expected influx for the Olympics, delivery options were limited. Bocata, a cozy 12-seat Spanish bocadillo restaurant in Tokyo’s Yutenji neighborhood, was owned by Takahiro Katsumura, who had hoped to attract Spanish visitors seeking a taste of home during the Olympic Games. However, the emergency declaration led to a 50 percent drop in weekend sales, forcing him to temporarily close his doors. “There’s a strong possibility I may have to shut down permanently if this situation continues well into the year,” Katsumura-san stated.

The themed Ninja Restaurant, which created an Edo-era village atmosphere complete with ninja performances, entertained diners in Shinjuku for nearly two decades before recently closing permanently. Although it still operates a branch in Akasaka, it too may face closure if circumstances worsen.

Ramen shops have particularly felt the impact — ramen has become the favorite dish for foreign visitors to Japan, and many owners invested heavily in anticipation of an Olympic boom, costs they must now manage. Toki Okumura, owner of Shinbu Sakiya, a ramen restaurant located in the tourist-rich Shibuya area near the famous pedestrian crossing, had projected record-breaking revenues due to the Olympics, estimating a 135 percent increase in July and August alone. Instead, sales have sharply declined, with March year-over-year revenue down by $62,000 USD, and an anticipated drop of $83,000 USD in April.

However, the damage was already done. In anticipation of the Olympics, Okumura-san revamped his menu to appeal to international diners, introducing vegan, gluten-free ramen, and “non-pork” (chicken and fish) options, while ramping up social media efforts to draw in non-Japanese customers. He also invested in a sleek touch-screen ticket machine that supports six different languages. These upgrades were costly — gluten-free noodles range from 350-400 yen per 100 grams, eight times more than regular ramen noodles (around 50 yen for 100 grams), and they have a shelf life of only six months (if the current situation extends past summer, he’ll have to discard them). The ticket machine set him back about $37,000 USD, which is twice the price of a standard model; it’s a luxury he can no longer afford.

Across from Shinbu Sakiya, a Kourakuen ramen branch has recently launched vegetarian gyoza dumplings specifically for foreign customers (only about 3.8 percent of Japanese are vegetarian). A custom “Recommended Menu” sign outside promotes these new plant-based options in both English and Chinese. Another ramen shop, Regamen, which opened in October near the new Olympic stadium in Kita-Sando, has also made similar upgrades. A fresh coat of paint and new English signage declaring “YES, WE’RE OPEN” were designed to attract visitors. The owners invested in printing menus in both English and Chinese, and they trained their staff to handle special substitution requests from tourists. Now, they’re shifting focus to cater more to local patrons.

When he’s not running his ramen shop, Ramen Emoto, in the trendy Naka-Meguro area, Masahiro Emoto hosts tourists on ramen walking tours throughout the city. [Disclosure: These are organized through the writer’s company, Tokyo Ramen Tours]. For the Olympics, he had planned a special “nagashi tsukemen” event, inspired by the classic summer activity of nagashi somen, where guests catch noodles as they flow down a bamboo shoot. “I was definitely anticipating higher sales,” says Emoto-san, who also printed English menus for the event. “Given the recent uptick in tourism, I believe expectations were quite high across the country.”

Despite the challenges, some restaurateurs remain optimistic. “Looking at the coronavirus situation, it’s fortunate that the Olympics were only postponed,” says Okumura-san, expressing gratitude that the event hasn’t been canceled outright. Emoto-san shares this sentiment, noting, “As the virus continues to spread globally, uncertainty in business will persist. We’ll just need to prepare as best we can until the Olympics can be safely held next year. I hope for a swift return to normalcy worldwide.”

Frank Striegl is a Filipino American who was born in Tokyo and has a deep passion for ramen. He enjoys over 300 bowls each year while managing his blog, 5 AM Ramen, and Tokyo Ramen Tours for those visiting Japan.