In Japan, where prices are soaring, it is not uncommon to see a bowl of ramen in a major city priced at 1,000 Japanese yen. However, the owner of a ramen shop with 9 branches in Fukuoka Prefecture has been in the business for 48 years and has always insisted on selling a bowl of ramen for only 290 Japanese yen (approximately 1.88 US dollars), reflecting his steadfast commitment to a unique philosophy of operation.
According to a report by the Japanese media outlet Modern BUSINESS, Japanese people are now facing a time when they must mentally prepare to spend 1,000 yen on eating out for lunch. Despite this trend, the Showa Food Industry Company, which operates 9 ramen shops in Fukuoka Prefecture, has been sticking to offering ramen at 290 yen per bowl since opening its first shop in 1976.
The president of the company, Makoto Sumikawa, stated in an interview that while the perception of ramen may vary in other places, for the people of Fukuoka, ramen is a staple food of daily life. He emphasized the importance of keeping the price affordable to prevent it from becoming an occasional luxury item, stating, “If the price goes up, it will turn into a special treat that can only be enjoyed occasionally, so affordability is crucial.”
Sumikawa mentioned that the price of a popular Japanese magazine, “Weekly Shonen Jump,” is around 300 yen, and he aims to offer ramen in a way that gives customers the feeling of casually buying a magazine weekly.
With many ramen shop owners in Fukuoka facing rising costs and having to raise their prices, making it increasingly challenging for customers to enjoy a bowl of ramen, Sumikawa shared his unique perspective on the matter.
He believes that simply raising prices in response to increased costs is a mistake, as there is no direct correlation between costs and prices. Sumikawa emphasized that prices should be determined by customers (the market) rather than being raised solely due to cost increases, which he views as arbitrary.
Sumikawa acknowledged that while there may not be a direct correlation between costs and prices, an increase in costs would undoubtedly reduce the profit margin per bowl of ramen, prompting curiosity on how to manage this in their operations.
He mentioned that although the profit per bowl of ramen would decrease with increased costs, boosting sales volume could offset this decrease, noting that even if other shops raise their prices, their customer base would increase without any changes on their end.
Sumikawa emphasized that the decision to maintain the price of 290 yen for a bowl of ramen is not solely about the company’s profits but also about contributing to society.
He pointed out that with the average cost of eating out for lunch per person ranging from 700 to 800 yen, it is easy to exceed 1,000 yen without realizing it. By contrast, dining at their shop costs around 400 yen per meal, offering significant savings. Sumikawa suggested that by substituting two lunches priced at 800 yen with their ramen each week, one could save around 3,000 yen per month. Redirecting this money towards other activities could promote the prosperity of individuals and society as a whole.
(Translated from Central News Agency)