[Document Obtained] “Dissolved” in Just 8 Days… The “All-Too-Pressing Reason” Why the Kabukicho Hostess Club Association Couldn’t Keep Going

A “Hostess Club Association” Launched in Kabukicho!?

“As of August 1, Reiwa 8, we have established a union for cabaret clubs in Kabukicho.”

On August 1, in Shinjuku’s Kabukicho—a nightlife district that needs no introduction—a union of cabaret clubs was suddenly formed, causing quite a stir among those working the nightlife scene. However, 12 of the 22 establishments that had joined this “Cabaret Club Union” withdrew just three days later, and the union dissolved on the 8th.It all came to an end just eight days after its launch. Although the union collapsed almost as quickly as it began, why was it formed in the first place?

The cabaret club “X,” located in Kabukicho, was the driving force behind the union’s formation.

“They distributed a document titled ‘Explanation to All Information Desks Regarding the Launch of the Cabaret Club Union’ to each establishment,” said a source at a cabaret club.

While representatives reportedly delivered the “explanatory document” in person to some establishments, at many others it was simply slipped into mailboxes.The document, consisting of about three A4 pages, covered three main points: “Explanation of the Association’s Formation,” “Information on Commission (Catch—the reward received when a street promoter brings a customer into the club),” and “Rules for Member Establishments.” The third page also included a list of member clubs, which listed several establishments considered representative of Kabukicho as having joined the association.

“Many establishments learned of the association’s existence for the first time through this document, and their reaction was along the lines of, ‘What’s that?’ Even among the establishments listed, it seems many were just thinking, ‘Well, let’s join for the time being,’ so it appears they didn’t have high expectations for this association from the start.It’s unclear to what extent the establishments that joined actually agreed with the principles outlined here, so perhaps it was nothing more than a formality from the start. That said, since what was written in the document would have led to profits for the establishments, the industry might have changed if the association had actually taken shape” (ibid.).

The primary objective of launching the association appears to have been to standardize rebate rates across the association and put a stop to the overheated competition for commissions among stores. The document stated the following:

“The maximum rebate per person shall be limited to 100 percent of each store’s listed price.”

Some shops are openly rejecting the idea

To put it simply, the proposal is to set a cap on these referral fees. To begin with, soliciting customers on the street—known as “catch”—is considered a violation under the Tokyo Metropolitan Government’s Nuisance Prevention Ordinance and other regulations. Of course, it is also a violation for establishments to pay referral fees (rewards) to “catchers” in exchange for bringing in customers.

However, in Kabukicho, street soliciting by “catchers” continues to run rampant, with operators evading police scrutiny.Furthermore, to encourage catchers to bring in more customers, the commission rates vary from establishment to establishment. “100%” refers to paying the pre-determined amount for each customer referred, but recently, as competition has intensified, an increasing number of clubs have been paying more—offering markups of 120% or 150%.

As a result, there are cases where clubs end up operating at a loss even after bringing in customers. Cabaret clubs lacking financial resources or name recognition have been unable to keep up with the escalating “money game” of commission rates, leading to disparities in customer traffic. Therefore, the association aims to curb the commissions paid to street promoters by setting a cap on commission rates.

I called several cabaret clubs listed on the membership roster I obtained and asked about the launch of this association, but I was unable to get a specific response from any of them.

Of course, there were also establishments that did not join the association. According to one such establishment, they had no intention of joining from the very beginning when the idea of the association first came up.

“The reaction from our club’s manager was intense. The moment someone from the union handed him a flyer, he crumpled it up right in front of the entrance and threw it away. He completely ignored them, saying, ‘It’s not going to work for us here,’” said a representative from another cabaret club.

This club reportedly struggles to attract new customers and has no choice but to rely on outside sources, such as street promoters, to bring in business. They likely didn’t want to risk driving away potential new customers by joining the union and alienating the street promoters.

We want to attract new customers even if it means operating at a loss

According to a survey by Tokyo Shoko Research, bankruptcies among “bars, cabarets, and nightclubs” totaled 47 in the first half of ’24, marking the highest number in the past 10 years.Furthermore, in January ’26, there were 92 bankruptcies in the “food and beverage industry,” setting a new record for the month of January over the past 30 years. Bankruptcies in the “bars, cabarets, and nightclubs” sector also reached 11, an 83.3% increase compared to the same month the previous year. The business environment surrounding nightlife establishments remains severe.

The main problems boil down to “a lack of customers” and “customers not having money to spend.” At the same time, the salaries paid to women working in hostess clubs are also a major expense.

For example, suppose a famous hostess boasts on social media, “I made 10 million yen in one night!” However, in many cases, such popular hostesses are not paid an hourly wage but rather receive a share of the sales or a fixed percentage; therefore, even if they generate high sales, the club’s payment to them is correspondingly large. There are cases where, even with a popular hostess raking in huge sales, the club’s cut is not particularly substantial.

Furthermore, behind these popular hostesses lies the vast majority of hostesses who earn 7,000 to 8,000 yen per hour by entertaining walk-in customers. If there are several of them sitting idle, the club is effectively throwing away tens of thousands to hundreds of thousands of yen in potential hourly earnings.

Customer traffic itself is also dwindling. A host at one cabaret club describes the current situation: “There are simply no walk-in customers. Basically, the business relies on having regular, high-spending customers.”

“If even the regulars stop coming, the club has no future. That’s exactly why we need new customers right now. We need new walk-in customers to request specific hostesses and start coming to the club regularly. Only after going to that extent can the club finally turn a profit.

It’s a gamble as to what kind of customers will show up, but it’s still better to have them come to the club. When it comes to attracting people, we can’t be picky about the methods we use. Even if it means breaking the rules, we’re in a situation where we have to rely on street promoters.”

The reality behind the glitzy facade of hostess clubs is far from pretty. They depend on regular, high-spending customers, and if those customers leave, the club can’t stay in business. Perhaps the union was formed out of a desperate need to put a stop to the prevailing attitude that it’s acceptable to run a slight deficit as long as it brings in new customers.

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