Why Japan Could Lose Most of Its Ethnic Restaurants—A Community Leader Speaks Out

Entire families may be forced to leave Japan

The fragrant aroma of spice-filled curries and smoky kebabs has long whetted the appetites of Japanese diners, making ethnic restaurants an ordinary part of the urban landscape. Yet in the near future, these neighborhood eateries may begin disappearing.

The reason is neither poor business performance nor rising prices. Instead, it is the government’s puzzling decision to tighten the requirements for obtaining the Business Manager residence status.

Last October, the Immigration Services Agency of Japan revised its ministerial ordinance under the pretext of preventing the abuse of business visas through paper companies. As a result, the Business Manager visa—which had previously been obtainable by meeting either the requirement of at least ¥5 million in capital or employing at least two full-time staff members—now comes with significantly higher hurdles. Applicants must now have at least ¥30 million in capital, employ at least one full-time staff member, satisfy Japanese-language requirements, and meet other new conditions.

Although a three-year transitional period has been provided, it will be extremely difficult for small and medium-sized businesses to satisfy the new standards. Once the grace period expires, those unable to renew their visas will likely be forced to return to their home countries.

Narayan, who runs an Indian restaurant in Yokohama, is one of those facing this crisis.

“After paying employees’ salaries, taxes, and other expenses, there’s almost no profit left. When I talk to others in the same business, they all say, ‘There’s no way we can suddenly come up with ¥30 million.’ Even when we advertise for Japanese part-time workers, no one applies. If we can’t meet the new requirements, many of us believe we’ll have no choice but to give up our restaurants and return home.”

That is how he described the current situation.

At a time when Japan’s restaurant industry as a whole is struggling with labor shortages, the new requirement that even small establishments employ full-time Japanese staff is completely out of touch with reality.

Even more troubling is the impact these administrative rule changes could have on children whose lives are rooted in Japan. If a restaurant owner holding a Business Manager visa is no longer allowed to remain in Japan, their spouse and children, who live in the country under Dependent visas tied to that status, would also be forced to leave.

Jagmohan S. Chandrani (73), who runs a Japan-India trading company in Nishi-Kasai (Edogawa Ward), Tokyo, is also deeply concerned.

After coming to Japan in the 1970s, Chandrani imported and sold Indian tea while operating Indian restaurants. At the same time, he supported fellow Indians living in Nishi-Kasai and worked tirelessly to promote coexistence with the local community. Today, he is affectionately known as the “Father of Little India.” He also serves as chairman of the Edogawa Indian Association.

Chandrani said:

“Many of the children of Indian restaurant owners have built lives that are, for all intents and purposes, Japanese. When they come home from school, they naturally speak Japanese. They play with their friends entirely in Japanese. Many of them can’t even speak Hindi fluently. To tell them to return to India now and learn Hindi from scratch would simply be too cruel.”

Only 4% meet the new requirements

As alarm spreads among those affected, there is data showing just how steep the new requirements are. It comes from internal Immigration Services Agency (ISA) documents submitted at the request of Sohei Nihi, a House of Councillors member from the Japanese Communist Party, who has been pressing the government on the issue in the Diet.

According to the documents, among approximately 41,600 Business Manager visa holders as of the end of 2024 (Reiwa 6), 73.9% have capital of ¥5 million. Including those with ¥10 million or less, the figure rises to about 90% of all visa holders. By contrast, only 4.1% meet the new standard of ¥30 million or more in capital. In other words, under the current situation, more than 90% of Business Manager visa holders would fail to meet the new requirements.

“The Japanese government granted these visas, and these people have followed the rules and worked diligently to build their lives here. In doing so, they have developed trust in Japanese society. The government has a responsibility to protect and uphold that trust. To suddenly reverse course and undermine it for foreign residents is an act that runs contrary to international good faith and basic fairness,” said Sen. Sohei Nihi.

How does the Immigration Services Agency itself view the situation? We spoke with its Residency Management Division.

“As a general principle, we would like applicants to meet the new standards. However, failure to do so will not automatically result in rejection. We will make a comprehensive assessment based on factors such as how closely the applicant meets the new criteria, the condition of the business, and whether corporate taxes and other obligations have been properly paid. Our intention is not to immediately force businesses that are rooted in their local communities to shut down, and we certainly do not anticipate that 90% of them will go out of business.”

Although the government says it will not reject applications across the board and will instead exercise flexibility, there remains a significant gap between the official position and the reality on the ground, leaving business owners deeply anxious.

“Everyone is extremely worried right now. Until now, we felt that Japan welcomed us. But suddenly it feels as though we’re being told, ‘We don’t need you anymore—go home.’ Saving ¥30 million in just three years is simply unrealistic. It’s obvious that nearly half of the people who obtained their own visas and opened their own businesses won’t be able to meet this requirement and will end up being forced to return to their home countries,” said Mr. Chandrani, quoted earlier.

Before the smiles of these people—who continue working hard in their restaurant kitchens every day—are lost, shouldn’t we speak out against this unjust reality?