Foreign Worker Freeze Hits Japan’s Restaurant Industry

Among those feeling the impact is the popular chicken wing chain World Yama-chan, where foreign employees have become an essential part of daily operations.

Before opening hours at one of its restaurants, 23-year-old Poudel Pabin from Nepal carefully fries batch after batch of the chain’s signature chicken wings.

“I usually fry them for about three and a half minutes, separate them so they don’t stick together, and then fry them again,” he said.

Pabin taught himself Japanese through books and YouTube before obtaining a work visa that allows full-time employment. He arrived in Japan at the age of 20 and joined World Yama-chan three years ago. Today, he works both in the kitchen and dining area and is considered one of the restaurant’s key employees.

He admits mastering Japanese cooking techniques was not easy.

“At first it was difficult. I cut my fingers many times, but senior staff who had worked at Yama-chan for years taught me. I’m still not perfect,” he said.

After gaining restaurant experience in Nepal and developing his cooking skills at a hotel restaurant, Pabin came to Japan with a long-term goal: opening a business in Nepal that combines a convenience store and a restaurant.

“I think taking care of customers is the most important thing. When I return to Nepal, I want to create a restaurant with the same atmosphere as Japan,” he said.

At World Yama-chan, foreign nationals account for roughly half of all employees, including both full-time staff and part-time workers. Some locations are reportedly staffed by foreign workers at rates approaching 90%.

Tsuyoshi Sasano, deputy general manager of human resources and general affairs at SY Food, said foreign employees have become indispensable.

“They are succeeding in jobs that suit their abilities. Many foreign employees are even more capable than Japanese store managers. Overall, they are extremely talented people, and we hope their numbers continue to grow. They are very valuable human resources,” Sasano said.

Many workers like Pabin are employed under the Specified Skilled Worker Type 1 visa, a residency status introduced in 2019 to address labor shortages. The program covers 16 industries, including food service, nursing care, agriculture and construction.

The food service sector has been one of the most popular categories under the program, with worker numbers rising rapidly since its introduction.

However, the sector has now reached a critical turning point.

Agriculture, Forestry and Fisheries Minister Norikazu Suzuki announced on April 14th that the number of Specified Skilled Worker Type 1 visa holders in the restaurant sector was expected to exceed the government’s cap.

By the end of February, the number had reached approximately 46,000. With the ceiling of 50,000 workers expected to be reached, authorities halted the acceptance of new Type 1 workers into the restaurant industry in mid-April.

Sasano said the industry was surprised by the speed at which the limit was reached.

“It happened much sooner than expected. Since the ceiling has been reached, it is understandable, but we hope the government can respond flexibly, including raising the limit,” he said.

The suspension comes as labor shortages continue to worsen. Last fiscal year, the restaurant industry recorded a record number of business failures linked to staffing shortages.

World Yama-chan has already begun reviewing working conditions and benefits in an effort to attract more Japanese employees.

The disruption is also being felt at language schools that prepare students for careers in Japan.

At ARMS Japanese Language School in Nagoya, around 500 students from countries including Nepal, Myanmar and Sri Lanka are studying Japanese. Approximately 30 students had been preparing to obtain Specified Skilled Worker qualifications for restaurant jobs.

Principal Yukihiko Isomura said students were forced to reconsider their plans after the suspension was announced.

“Some students hoped to work in restaurants after graduation under the specified skills program, but that path has disappeared. It’s unfortunate because they can no longer pursue what they originally wanted to do,” he said.

Among them is 24-year-old Aye Win Phyu from Myanmar, who arrived in Japan in October last year with hopes of entering the restaurant industry.

“Because restaurant-sector acceptance has stopped, my dream has changed,” she said.

She is now considering employment at a food manufacturing plant while continuing to study. At the same time, she works part-time at a Japanese restaurant to learn customer service and cooking skills.

“I want to study hard now and eventually open a restaurant in my home country,” she said.

Another student from Myanmar, 22-year-old Ei Mon Zaw, had already secured a position with a Japanese restaurant chain before arriving in Japan in April. The company had also lent her money for tuition expenses on the condition that she would work there after graduation.

However, with new restaurant-sector visas suspended, she can no longer take up that position.

“Since I can’t work in restaurants now, I’m studying food manufacturing. If I can work in restaurants in the future, I want to switch back,” she said.

She plans to work at a factory affiliated with the company while repaying her tuition loan and waiting for the restrictions to be lifted.

Industry groups are calling for an expansion of the visa quota, but experts argue that the current cap may not reflect actual labor market conditions.

Ayumi Minamida, a senior researcher at Mitsubishi UFJ Research and Consulting, said estimating labor demand in the restaurant industry is particularly difficult.

“It is not wrong in principle to estimate labor shortages and set a limit based on that figure, but accurately estimating demand in the restaurant sector has proven challenging,” she said.

Minamida also warned that the policy could damage Japan’s reputation among prospective workers overseas.

“My greatest concern is that students who studied with the goal of working in Japan’s restaurant industry, and who invested their own money in that dream, suddenly find the door closed. Japan’s image could suffer greatly. Even if we later ask people to come, they may no longer be willing to do so,” she said.

As labor shortages continue across much of the Japanese economy, policymakers face increasing pressure to balance protecting domestic employment with securing the workforce needed to sustain economic activity. The sudden halt in restaurant-sector recruitment has highlighted the growing challenge of designing an immigration system that can respond quickly to changing labor demands while maintaining confidence among foreign workers seeking opportunities in Japan.

Source: テレ東BIZ

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