The Rise of "Suburban Ramen" Behind the Mass Closures of Tenichi: The Paradigm Shift Facing the Japanese Ramen Industry Today

The Rise of "Suburban Ramen" Behind the Mass Closures of Tenichi: The Paradigm Shift Facing the Japanese Ramen Industry Today

2025年07月10日 16:40

1. What is Happening to the Long-Established Urban Chain?

On July 10, 2025, Toyo Keizai Online released a shocking article titled "Tenichi's Mass Closures…" reporting that the chain, once synonymous with "rich flavor," was closing more than 10 stores in urban areas. The closures marked the second consecutive year of a rush, spreading ripples that came to be known as the "Tenichi Shock."Toyo Keizai OnlineToyo Keizai Online



2. Five Factors Behind the "Tenichi Shock"

  1. Rising raw material costs, 2) Increased electricity and gas prices, 3) Rising labor costs due to labor shortages, 4) Conflicts of interest between franchise headquarters and franchisees, 5) High urban rent—particularly stores affected by both (4) and (5) reportedly fell below the profitability line.Livedoor NewsInshokuten.com



3. The "Unexpected Commonality" Among Chains Expanding in Suburban Areas

While some chains are withdrawing from urban centers, Marugen Ramen, Machida Shoten, Kairikiya, and Tadokoro Shoten are rapidly expanding along roadsides. In the 2025 store count rankings, Machida Shoten recorded the highest growth rate with an increase of 30 stores year-on-year (+22.1%).nipponsoft.co.jp


What these successful groups have in common is

  • large box-shaped stores with parking lots of about 100 tsubo

  • volume menus and kid-friendly features catering to families

  • app reservations, mobile ordering, and self-checkout to increase turnover

  • strong real estate development capabilities on vacant land along national highways
    .



4. Why Suburban Locations are Strong—A Socio-Economic Perspective

Remote work and suburban migration accelerated by the COVID-19 pandemic, along with the regional dispersion of inbound demand, have increased the ratio of dining out by private car. According to road usage data from the Ministry of Land, Infrastructure, Transport and Tourism, traffic volume on suburban arterial roads recovered to 112% of pre-pandemic levels in 2024. Roadside locations, where rent is less than one-third, make it easier to secure gross profit despite high utility costs.Nomura Holdings



5. Case Study: Marugen Ramen

Operated by Monogatari Corporation, Marugen Ramen opened its Nagatsuta store in July 2025, reaching 226 stores nationwide. The standard store size is over 70 seats with more than 20 parking spaces. Its strength lies in a dedicated boiling pot that shortens noodle cooking time and an average service time of 4 minutes from order to delivery.Press Release & News Release Distribution Share No.1 | PR TIMES



6. Franchise System and "Roadside Strategy"

The roadside model often involves a "land-included package" that engages landowners and investors. Although the initial investment for franchisees is significant, it can be recouped with sales exceeding 10 million yen per month. Experts point out that whether or not a chain quickly shifted to suburbanization marked the difference between Tenichi and Marugen.Hatena Blog



7. International Comparison: America's Roadside Culture and Similarities

Alongside American highways, hamburger chains line up, while in Japan, ramen serves a similar role along national roads. Although drive-thru examples are still few, 24-hour operations and takeout windows are increasing, advancing the trend toward fast food.



8. Market Size and Future Outlook

According to the latest estimates from think tanks, the ramen market is projected to reach 790 billion yen in fiscal year 2024, 1.6 times that of ten years ago. There is significant room for major dining chains to enter, and M&A and overseas expansion are expected to accelerate.Press Release & News Release Distribution Share No.1 | PR TIMES



9. Advice for Foreign Tourists

  • Transportation: Touring suburban stores by rental car or getting off at highway bus stops is efficient.

  • Ordering Method: Many chains have already introduced self-checkout systems that support English and Chinese.

  • Recommended Time: Avoiding the dinner rush from 3 PM to 5 PM means shorter lines and faster turnover.



10. Conclusion—Where is Ramen Heading?

Slurping "back fat chacha" at narrow urban counters—a scene reminiscent of the Showa era—is rapidly disappearing. In the future, large roadside stores will become the standard, and the experiential value of Japanese ramen culture will shift from "midnight back alleys" to "evening highways." However, there is still significant room for local specialty shops and individually-run renowned stores to survive. The era has arrived for both visiting tourists and resident foreigners to enjoy the "Ramen Hundred Views," where the old and new intersect.




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