How to Start a Restaurant as a Foreigner in Japan: The Complete 2026 Guide

Japan is one of the world's great food nations. Tokyo alone has more Michelin-starred restaurants than any other city on earth. Inbound tourism hit a record 40 million visitors in 2025, with dining accounting for roughly 22–23% of all tourist spending — approximately ¥5 trillion flowing through Japanese restaurants and cafes in a single year. Domestic consumers are more open than ever to international cuisine, plant-based menus, and creative fusion concepts. The market is real, the appetite is genuine, and foreign-run restaurants from ramen shops in Osaka to French bistros in Tokyo have proven that it can work.

What makes Japan uniquely challenging for foreign restaurant entrepreneurs is not the market — it is the legal, visa, and regulatory framework that surrounds the business. There are rules that do not exist in most other countries, visa changes that took effect in late 2025 that most guides have not caught up with yet, and a licensing process that is entirely in Japanese and moves on Japan's schedule, not yours.

This guide covers everything — from the correct visa path for your situation to the last permit you need before your first customer walks through the door.

The Market Opportunity: Why Japan in 2026

Before diving into the process, it is worth understanding why foreign entrepreneurs continue to choose Japan despite the complexity.

Japan's restaurant industry generates approximately ¥26 trillion per year in total sales. The market rewards quality, consistency, and authenticity relentlessly — a well-run foreign concept with genuine culinary identity can build a loyal customer base faster here than in many more saturated Western markets. Japanese consumers are adventurous eaters with high expectations for both food quality and service standards. They will pay a premium for an experience they believe in, and they will return repeatedly when they find one.

The tourism tailwind is structural, not temporary. Japan's government has set ambitious targets for sustained inbound tourism growth, the yen's position makes Japan an attractive destination for international visitors, and dining is consistently ranked as the top spending category for foreign tourists in Japan. A well-located restaurant in a tourism-adjacent area benefits from both the domestic and international dining market simultaneously.

The competitive landscape is demanding — Japan has one of the highest restaurant densities in the world, and failure rates are significant for underprepared entrants. But for foreigners who understand the market, navigate the legal framework correctly, and bring a concept with genuine differentiation, the opportunity is legitimate.

Step 1: Understand Your Visa Options — This Comes Before Everything

The single most important decision for a foreign entrepreneur opening a restaurant in Japan is the visa question — and this is where the October 2025 changes have dramatically altered the landscape. Before you look at properties, register a company, or apply for a single license, you need to know which visa path applies to you.

Option A: Business Manager Visa (経営・管理ビザ) — Post-October 2025 Requirements

The Business Manager Visa is the standard route for foreign nationals who want to establish and run a business in Japan. Prior to October 16, 2025, it was widely used by foreign restaurant entrepreneurs under a framework that required a minimum capital of ¥5 million and a physical office or business location.

That framework no longer applies. As of October 16, 2025, the Immigration Services Agency significantly revised the requirements — these changes represent the most substantial tightening of entrepreneur visa rules in over a decade.

The new Business Manager Visa requirements as of 2026:

Capital: You must demonstrate capital of ¥30 million — a sixfold increase from the previous ¥5 million threshold. This must be verifiable through bank records and company registration documents. Borrowed capital may not be treated the same as equity capital in the assessment.

Mandatory employee: You must employ at least one full-time worker who holds one of the following statuses: Japanese national, permanent resident, special permanent resident, or spouse of a Japanese national or permanent resident. Workers on standard work visas — including Engineer/Specialist/International Services visa holders — do not satisfy this requirement. This is a critical and widely misunderstood point.

Japanese language proficiency: Either you personally, or at least one of your qualifying full-time employees, must demonstrate Japanese proficiency at approximately JLPT N2 level or equivalent.

Business plan verification: Your business plan must be certified or evaluated by a qualified third party — typically a certified public accountant, a registered administrative scrivener (gyōsei shoshi), or a small and medium enterprise management consultant.

Genuine business activity: The October 2025 revisions also introduced stricter enforcement of the requirement that the business actually operate. Extended absences from Japan without documented justification, businesses that exist on paper but show no revenue or activity, and businesses that cannot demonstrate meaningful economic contribution are all grounds for renewal denial under the new framework.

Management experience: Three years of management experience is now formally expected as part of the application dossier, though this has always been an informal expectation.

Applications submitted before October 15, 2025 continue under the previous rules. Existing Business Manager Visa holders have until October 16, 2028 to fully comply with the new standards before their next renewal.

For most foreign entrepreneurs considering starting a restaurant in Japan from scratch in 2026, the ¥30 million capital requirement is the hardest barrier. This is not a deposit that is returned — it is equity capital that funds the business. For a restaurant, ¥30 million is realistically sufficient to cover startup costs in most configurations, but it eliminates the low-capital entry strategies that many guides written before October 2025 describe.

Option B: Startup Visa (スタートアップビザ) — The Smarter Path for 2026

Given the significantly higher barriers for the Business Manager Visa since October 2025, the Startup Visa has become an even more valuable pathway for foreign entrepreneurs.

The Startup Visa is a preparatory visa that grants up to two years of residence in Japan to plan, research, and build the foundations of a new business — before you are required to meet the full Business Manager Visa requirements.

Key Startup Visa features as of 2026:

• Nationwide availability: As of January 2025, the program was unified and expanded nationally. Previously limited to designated special zones, entrepreneurs can now apply through certified municipalities across Japan.

• Up to two years of residence to prepare your business (extended from the previous one-year maximum)

• You do not need to meet the full Business Manager Visa capital and hiring requirements during the preparation period

• Permitted activities during the startup period: business planning, market research, securing premises, opening bank accounts, meeting advisors, obtaining licenses, building supplier relationships — but not revenue-generating operations

• Restaurant businesses are explicitly eligible

• If you received your Startup Visa confirmation before October 16, 2025, you may convert to a Business Manager Visa under the previous (lower) requirements. If your confirmation was issued after October 16, 2025, the new requirements apply.

The practical implication: the Startup Visa allows you to be inside Japan, learning the market, building relationships, completing your licensing process, and preparing your premises — all before you have to meet the ¥30 million capital and mandatory employee thresholds. When you are ready to open and generate revenue, you convert to the Business Manager Visa with your business plan, capital, and employee in place.

This sequencing is now the recommended approach for most foreign restaurant entrepreneurs starting from outside Japan. The Startup Visa application is processed through a certified municipality — major cities including Tokyo, Osaka, Kobe, Fukuoka, and many others participate. Each municipality has its own application process and support resources.

Option C: You Already Have a Qualifying Residence Status in Japan

If you are already living in Japan on a spouse visa, permanent residency, long-term resident visa, or another status that permits unrestricted business activity, you can open a restaurant without applying for the Business Manager Visa at all. You register your business as a sole proprietor or incorporate a company, obtain the required restaurant licenses, and operate — your existing visa covers your right to conduct business activities.

This is by far the simplest path for those who already have deep roots in Japan. Many of the most successful foreign-owned restaurants in Japan are run by individuals who arrived on one visa, built their life here, and eventually launched a food business from a position of established residency.

If you are on a standard work visa that specifies a particular occupation (such as an Engineer/Specialist visa or an Instructor visa), you cannot operate a separate restaurant business under that status without changing your visa. Consult with an immigration specialist if you are in this situation.

The Visa-Work Activity Trap: A Critical Nuance for Restaurant Owners

This is one of the most misunderstood aspects of opening a restaurant in Japan as a foreigner, and it trips up a significant number of entrepreneurs.

Japan's visa system is activity-based — your status of residence defines what you are legally permitted to do. The Business Manager Visa covers business management and administration. It does not cover working as a cook, a waiter, a cleaner, or any other hands-on operational role in the restaurant.

This means: as a Business Manager Visa holder, you can own and manage your restaurant, but you cannot legally perform the day-to-day operational work of cooking, serving, or cleaning without additional work permission.

In practice, this creates a structural requirement: you need to hire staff to perform the operational roles. If you want to personally cook in your restaurant, you would need a different visa status — and Japan does not issue work visas for general cooking unless you meet the strict requirements of the "Skilled Labor" visa for specialist foreign chefs (minimum 10 years of experience in a cuisine not widely available in Japan). The Business Manager Visa and the Skilled Labor visa are different statuses, and you can only hold one at a time.

The realistic solution for most foreign restaurant owners is to hire Japanese staff (or staff with appropriate work authorization) for operational roles, position yourself clearly in a management and ownership capacity, and be scrupulous about not crossing the line into activity outside your visa's permitted scope.

Step 2: Choose Your Business Structure

Once your visa path is clear, establish the legal entity through which your restaurant will operate. In Japan, foreign-owned restaurant businesses typically use one of two corporate structures.

Kabushiki Kaisha (KK — 株式会社)

The KK is Japan's equivalent of a joint-stock company — the standard structure for larger or more formal businesses. It offers the highest level of credibility and familiarity to Japanese landlords, suppliers, banks, and customers, which matters more than many foreign entrepreneurs expect when you are trying to sign a lease or open a corporate bank account.

Incorporation costs for a KK are approximately ¥240,000 in official fees plus professional fees if you use a scrivener (¥50,000–¥150,000). A resident director is not strictly required for foreign-owned KKs under current regulations, but many landlords and banks will informally expect a local representative contact.

Godo Kaisha (GK — 合同会社)

The GK is Japan's limited liability company equivalent — simpler, cheaper to incorporate (approximately ¥60,000 in official fees), and increasingly popular with startups and single-owner businesses. Its main limitation is that it carries less brand recognition and can face more skepticism from traditional Japanese landlords and financial institutions unfamiliar with the structure.

For a solo foreign entrepreneur opening their first small restaurant in Japan, the GK's lower cost and simpler administration often make it the practical choice. For a multi-partner operation or one where institutional credibility is important from the start, a KK is worth the additional cost.

Incorporation process:

• Prepare articles of incorporation (定款, teikan) — requires notarization for KKs (approximately ¥52,000)

• Deposit capital into a personal bank account and obtain a bank statement confirming the amount

• Register with the Legal Affairs Bureau (法務局) — typically takes 1–2 weeks

• Obtain your company registration certificate (登記事項証明書) and corporate number

• Register for tax with the relevant tax offices (national and prefectural/municipal)

• Apply for social insurance enrollment for employees

The entire incorporation process, if handled smoothly, takes two to four weeks. Many foreign entrepreneurs use a registered administrative scrivener (行政書士, gyōsei shoshi) or judicial scrivener (司法書士, shihō shoshi) to handle the paperwork — fees range from ¥100,000 to ¥300,000 for the full incorporation service, which is generally worthwhile for Japanese-language document preparation.

Step 3: Find Your Location

Location is the single biggest determinant of a restaurant's success in Japan. The country's dense urban geography, deep-rooted neighborhood dining cultures, and sharply varying foot traffic patterns mean that a few hundred meters can be the difference between a full house and an empty room.

What to Look For

Foot traffic concentration. Areas near train stations (within 3–5 minutes' walk), shopping districts, office clusters, and tourist zones generate consistent customer flow. In Japan, most dining decisions are made within the immediate walking radius of wherever people are — destination dining exists, but it is a higher bar for a new, unknown concept.

Neighborhood demographic fit. A high-end omakase concept belongs in a neighborhood where spending on fine dining is normalized — Minami-Aoyama, Ginza, Nishiazabu. A casual lunch concept near an office district fills naturally on weekdays. A family-format restaurant needs residential density within walking distance. Study the neighborhood's existing restaurant mix, average spending, and customer profile before committing.

Competition density. Japan has an extraordinary concentration of restaurants — the competition in any food category in a major urban area is intense. Avoid areas that are saturated with direct competitors offering the same cuisine and format. Look for neighborhoods where your concept fills a genuine gap.

Commercial zoning compliance. Not every building or zone in Japan permits restaurant operations. Confirm that the property is zoned for food service (飲食店営業が可能な用途地域) before committing to any space. Your real estate agent should verify this, but confirm it yourself with the local ward office if in any doubt.

Inuki vs. Skeleton Properties

This is one of the most Japan-specific decisions in the entire process and has enormous cost implications.

Inuki (居抜き) property: A space where the previous tenant was also a restaurant and left the kitchen equipment, ventilation, ductwork, drainage, and sometimes furniture in place. You are effectively buying the fit-out of the previous tenant alongside taking on the lease. Inuki properties dramatically reduce fit-out costs and can cut months off your preparation timeline. The trade-off is that you may be inheriting an outdated kitchen layout, equipment that does not suit your concept, and a space whose bones were designed for a different type of restaurant.

Skeleton (スケルトン) property: A bare shell with no fit-out — just walls, floor, ceiling, and utilities connection points. You design and build your kitchen from scratch to exactly your specifications. This gives you full control over the space but requires a full construction and equipment budget that can range from ¥3 million to over ¥20 million depending on scale and specification.

For foreign entrepreneurs with limited capital and a first restaurant in Japan, an inuki property in the right location is almost always the financially sensible choice. The savings on fit-out costs can be the difference between a viable and an unviable startup budget.

Leasing Challenges for Foreign Entrepreneurs

Navigating Japan's commercial leasing process can be challenging for foreign entrepreneurs. Common hurdles include high upfront costs, large deposits, and landlords often requiring a guarantor. Some may also be hesitant to lease to foreign-run businesses without local partners or credit history.

Upfront costs for commercial leases in Japan are substantial. Expect to pay:

• Security deposit (敷金, shikikin): Typically 6–12 months' rent for commercial properties

• Key money (礼金, reikin): 1–3 months' rent, non-refundable, paid to the landlord as a courtesy payment — less common in commercial leases than residential but still encountered

• Brokerage fee (仲介手数料): 1–2 months' rent paid to the real estate agent

• Guarantor service fee: 20–50% of monthly rent per year if using a professional guarantor company (必要な場合)

On a restaurant space with monthly rent of ¥300,000, total upfront leasing costs can reach ¥2.5 million to ¥4.5 million before you have spent a single yen on renovation or equipment.

Working with a bilingual commercial real estate agent is essential. Agents who specialize in foreign business clients understand the guarantor issue, can negotiate with landlords on your behalf, and know which properties and landlords are more open to foreign tenants. In Tokyo, agents such as Plaza Offices, Mori Building Commercial Properties, and Japan Property Central handle commercial leases with international clients regularly.

Step 4: Obtain All Required Licenses and Permits

Japan requires multiple distinct licenses and permits to legally operate a restaurant. These must be obtained from different government authorities and in a specific order. Missing or delaying any of them can postpone your opening — or result in fines and closure after you are already operating.

License 1: Restaurant Business Permit (飲食店営業許可, Inshokutten Eigyō Kyoka)

This is the foundational license that makes your restaurant legal. To operate a restaurant, an owner should apply for a business permit from the local public health center (保健所, Hoken-Jo) overseeing the restaurant's location.

The permit is granted by the public health center in the district where your restaurant is located — not a national body. Each prefecture and municipality has slightly different standards, so the first step is to visit or contact your local Hoken-Jo before construction or fit-out begins, to confirm their specific requirements.

What the inspection covers:

The health inspector will evaluate your kitchen and premises against standards covering:

• Kitchen separation: The kitchen must be physically separated from the dining area by a door or partition. A pass-through window or swing door is generally acceptable; a fully open kitchen concept requires prior discussion with your Hoken-Jo.

• Sinks and hand washing: A dedicated hand-washing sink in the kitchen, separate from the food preparation sink, is required. The number and location of sinks must comply with the health center's specifications.

• Storage and refrigeration: All food storage must be in the kitchen area. Beverage fridges in the dining area may be permitted for drinks but must be discussed in advance. Raw and cooked foods must be stored separately.

• Drainage: Appropriate drainage systems for kitchen waste water are required. This is a common issue in inuki properties where the previous tenant's drainage layout may not suit your kitchen design.

• Ventilation and fire suppression: Adequate hood ventilation over cooking equipment and appropriate fire suppression systems (see Fire Prevention Manager license below).

• Pest control: Evidence of pest prevention measures including sealed food storage and appropriate waste management facilities.

• Lighting: Minimum lighting levels in food preparation areas.

Application process:

Submit the application approximately 10 days before your construction is complete. The health center will schedule an inspection once the facility is ready. If the inspection passes, the permit is typically issued the same day or within a few days. If there are deficiencies, you will be told what to correct and the inspection rescheduled.

The application fee varies by prefecture but is generally in the range of ¥15,000–¥30,000 for a standard restaurant business permit.

License 2: Food Sanitation Manager Certificate (食品衛生責任者, Shokuhin Eisei Sekininsha)

There are prerequisites for opening a food business in Japan such as appointing a food sanitation manager. When a food sanitation supervisor is designated, an appointment needs to be filed with a local health care center for a one-day mandatory certification training.

Every restaurant in Japan must designate at least one Food Sanitation Manager — an individual responsible for food hygiene compliance on the premises. This person must hold a valid Food Sanitation Manager certificate, obtained by attending a mandatory one-day training course run by the prefecture's food sanitation association.

The lecture class is conducted in Japanese. It could be difficult for a foreigner who is not good at Japanese to understand all the details of the lecture, however, all people need to do to get the certificate is to participate in the one-day lecture class. There is no written examination — attendance is the requirement, not passing a test.

The certificate can be held by the owner, the head chef, or a full-time employee. The certificate belongs to the individual, not the business — if the Food Sanitation Manager leaves your employment, you must designate and register a replacement promptly.

Training course fee: approximately ¥10,000–¥12,000. Courses fill up quickly in urban areas — book well in advance, as the schedule only offers specific dates per month.

If you also hold a licensed dietitian (栄養士), cooking specialist (調理師), or other qualifying credential in Japan, you may already be exempt from the training course requirement and can apply directly for the certificate. Check with your local food sanitation association.

License 3: Fire Prevention Manager (防火管理者, Bōka Kanrisha)

Restaurants that can accommodate 30 or more people (including staff) are required to designate a Fire Prevention Manager and submit a fire prevention management plan (消防計画) to the local fire department (消防署, shōbōsho).

There are two levels of Fire Prevention Manager qualification:

• Class A Fire Prevention Manager: Required for larger facilities (buildings over 3,000 m² or certain usage types). Training is a 2-day course, approximately ¥8,000.

• Class B Fire Prevention Manager: Required for smaller facilities. Training is a 1-day course, approximately ¥5,000.

For most small to medium-sized independent restaurants, the Class B qualification suffices. Training is conducted in Japanese. If you plan to use cooking equipment powered by open flame (gas burners, charcoal grills, teppanyaki), confirm with your fire department whether additional permits or equipment inspections are needed before installing the equipment.

License 4: Alcohol Sales License (酒類販売業免許, Shurui Hanbai Gyō Menkyo) — If Serving Alcohol

If your restaurant serves alcohol for on-premises consumption, the procedure is straightforward — serving alcohol in a restaurant setting is covered under your Restaurant Business Permit without needing a separate alcohol license, provided you are not selling alcohol for takeaway or off-premises consumption.

However, if you plan to:

• Sell bottled alcohol for customers to take home

• Operate a bar where alcohol is the primary offering rather than food

• Sell alcohol after midnight in certain prefectures

...you will need an alcohol sales license from the National Tax Agency (国税庁) via your regional tax office. This process involves submitting a business plan, demonstrating premises compliance, and clearing a background check. Processing takes approximately two months.

License 5: Late-Night Entertainment or Alcohol Provision Business Permit (深夜酒類提供飲食店営業届出 or 風俗営業許可) — If Applicable

If your restaurant serves alcohol primarily as a bar (rather than a restaurant where food is the main offering) and you operate past midnight, you must submit a notification of late-night alcohol provision to your local police station under the Act on Control and Improvement of Amusement Business.

If you add entertainment — live music, dancing, hostess or host service — additional permits under the Amusement Business Act may apply. These are complex, time-consuming, and not covered by a standard Restaurant Business Permit. Consult a specialist gyōsei shoshi if your concept includes entertainment elements.

Summary: License Application Order

Step 5: Design Your Kitchen to Pass Inspection

The most common reason Restaurant Business Permit applications are delayed is a kitchen design that does not comply with the health center's requirements. This is avoidable with one simple step: consult your local Hoken-Jo before construction begins.

Most public health centers in Japan will do a pre-application consultation (事前相談) where you bring your proposed kitchen layout, equipment list, and floor plan and an officer reviews them informally before you commit to building anything. This saves enormous time and money — discovering a compliance issue after the kitchen is built is a costly and stressful experience.

Non-negotiable kitchen requirements (most jurisdictions):

A dedicated hand-washing sink positioned so kitchen staff can wash hands without contaminating food preparation surfaces. A food preparation sink separate from the hand-washing sink. Adequate refrigeration with separate storage for raw meats, seafood, and other produce. A kitchen area physically separated from the dining space. A ventilation hood system above all heat-producing equipment. Drainage systems that meet the local authority's specifications.

For restaurants serving raw fish (sushi, sashimi, poke-style concepts), additional requirements around refrigeration temperatures and preparation surface materials typically apply. Discuss these specifically with your Hoken-Jo during the pre-application consultation.

Step 6: Budget Your Startup Costs Realistically

Japan's restaurant startup costs are significant, and the gap between what foreign entrepreneurs budget and what they actually spend is one of the primary reasons restaurant ventures fail in the first year. Here is a complete, realistic cost framework for 2026.

One-Time Startup Costs

Property acquisition costs:

Fit-out and equipment:

Legal, licensing, and administrative:

Pre-opening and working capital:

Total Startup Cost Estimates by Scale

According to the Japan Finance Corporation's 2024 New Business Survey, the average startup cost for new businesses (including restaurants) is approximately ¥9.85 million, with a median of ¥5.8 million.

Three months of operating cost reserves are non-negotiable. Japanese restaurants rarely reach full capacity in the first month — building a customer base takes time, and cash running out before the business has found its footing is the number one cause of failure. Budget for at minimum three months of rent, staff wages, utilities, and food cost with zero revenue. Six months is more conservative and more prudent.

Step 7: Financing Your Restaurant

Japan Finance Corporation (JFC) — Best Starting Point for Most Foreigners

The Japan Finance Corporation (日本政策金融公庫, Nihon Seisaku Kinyū Kōko) is a government-owned financial institution specifically mandated to support small businesses, new ventures, and entrepreneurs who cannot access conventional bank financing. For foreign entrepreneurs, it is typically the most accessible institutional loan source.

Foreign nationals are eligible if they have lawful residence and a clear business plan, but screening can be stricter and all documents must be in Japanese.

Key JFC features for restaurant startups:

• Loan amounts: up to ¥72 million for new business startup loans (standard product); smaller amounts for micro-business products

• Interest rates: approximately 2%–3.5% base rate for standard new business loans, potentially lower with specific qualifying conditions

• No collateral required for loans under certain thresholds under the startup product

• Repayment terms: typically 5–10 years with a grace period of 1–3 years on the principal during the startup phase

• English-language support is available at some JFC branches, particularly in major urban centers

Fukuoka City's government offers a reduced interest rate of 1.3% for a maximum loan amount of ¥25 million for startups in Fukuoka that have been established within the last two years. Other municipalities have similar support programs — check with your target city's local government business support office.

What JFC looks for in a restaurant business plan:

JFC loan officers assess the borrower's personal credit and financial history, the business plan's realism and market analysis, the entrepreneur's relevant industry experience, the startup cost breakdown, and the revenue and cash flow projections. A vague business plan or one that does not demonstrate understanding of the local restaurant market will not be approved. Engage a bilingual accountant or business plan writer if your Japanese is insufficient for a compelling submission.

Standard Bank Loans

Major Japanese commercial banks (MUFG, Mizuho, SMBC) are generally conservative about lending to new restaurant businesses, particularly those owned by foreigners without an established Japanese credit history. Mid-tier regional banks can be more accessible if you have existing relationships or can demonstrate strong local community ties.

For non-PR foreign entrepreneurs in the startup phase, standard bank lending for a restaurant business is realistically limited. JFC loans combined with personal equity are the more accessible path. Once your restaurant has 1–2 years of operating history and demonstrable revenue, refinancing or accessing commercial bank credit becomes significantly more realistic.

Government Subsidies and Grants

Japan offers a network of subsidy programs for small business startups, though not all are accessible to foreign entrepreneurs and most require Japanese-language applications.

Tokyo Metropolitan Government subsidies: Tokyo offers startup subsidies covering rent, advertising, equipment, and expert consultation costs for small and new businesses operating within the city. Programs are updated annually — the Business Development Center Tokyo (BDC Tokyo) and the Tokyo One-Stop Business Establishment Center (TOSBEC) are the primary access points for foreign entrepreneurs navigating these programs.

JETRO Support: The Japan External Trade Organization actively supports foreign companies establishing in Japan and can provide introductions to available subsidy programs, one-stop consultation services, and matchmaking with local advisors. JETRO's Invest Japan program offers free consultation and practical support for foreign entrepreneurs.

Reconstruction subsidies and regional promotion programs: Some regional governments outside the major metropolitan areas actively subsidize new restaurant businesses that commit to operating in revitalizing commercial districts. These programs can cover a portion of fit-out costs, initial rent, or equipment purchases. Rural and semi-rural areas are often more flexible and welcoming toward foreign-owned food businesses than the competitive urban markets.

Personal Savings and Foreign Investment

Many successful foreign restaurant owners in Japan have self-funded their first restaurant through personal savings, combined with financial support from family or overseas investors. Japan places no restriction on bringing foreign capital into a Japanese business — outward remittance regulations are more complex, but inward investment is straightforward.

If you are receiving investment from overseas, ensure the funds are transferred through formal banking channels with clear documentation of their source. Both for your business's own transparency and for JFC and business manager visa application purposes, clear capital provenance documentation is essential.

Step 8: Hire and Structure Your Staff

Staffing a restaurant in Japan as a foreign owner involves navigating both employment law and the visa-related constraints on who can work in what capacity.

Who Can Work in Your Restaurant?

Japanese nationals and permanent residents: No restrictions. Full-time or part-time employment is straightforward under standard Japanese labor law.

Spouses of Japanese nationals (配偶者ビザ): No work restrictions. Can be hired in any capacity including operational roles.

Long-term residents (長期在留者) and specific PR-adjacent statuses: Generally no work restrictions.

Standard work visa holders (Engineer/Specialist etc.): Can work in their specified occupation. A software engineer on a work visa cannot legally take up a part-time kitchen position in your restaurant.

Working holiday visa holders: Can work up to 28 hours per week during regular periods. A common source of part-time international staff at restaurants in Japan, but the visa has time limits and nationality restrictions.

Students (留学生): Can work up to 28 hours per week (up to full-time during recognized holiday periods) with work permission. Many restaurant part-time positions are filled by international students in Japan's major cities.

Specified Skilled Worker (SSW1) visa holders: Can work in designated food service industry roles. For restaurants that struggle to attract Japanese part-time staff, hiring through the SSW framework for food service occupations is an increasingly used route.

Japanese Employment Law Essentials

Japan's Labor Standards Act applies equally to all employees regardless of nationality. Key obligations for restaurant owners:

Written employment contracts: Required for all employees. Must specify job role, hours, wages, holiday entitlement, and termination conditions. Casual "handshake" arrangements are legally insufficient.

Social insurance enrollment: Full-time employees (and in some cases part-time employees working above certain hour thresholds) must be enrolled in health insurance and pension — either through Employees' Health Insurance (EHI) or National Health Insurance. As the employer, you contribute approximately half the combined premium.

Labor insurance: Workers' accident compensation insurance (労災保険) is mandatory for all employees including part-time workers. Employment insurance (雇用保険) is required for employees working 20 hours or more per week.

Minimum wage: Japan's minimum wage is set by prefecture. In Tokyo, as of late 2025, the minimum hourly wage is ¥1,163. Always confirm the current figure for your prefecture.

Overtime rules: Hours beyond 8 per day or 40 per week must be compensated at a premium rate of at least 125% of the regular hourly rate. Night work (between 10pm and 5am) also commands a 125% premium. These rules are enforced, and violations are taken seriously by Japanese labor inspection authorities.

The Mandatory Employee Requirement for Business Manager Visa Holders

As noted in the visa section: your mandatory full-time employee (a Japanese national, permanent resident, or spouse of either) must be an actual employee with a genuine role, proper employment contract, social insurance enrollment, and meaningful work to do. Hiring a nominal employee who does not actually work to satisfy the visa requirement is fraudulent and grounds for visa revocation.

Step 9: Ghost Kitchens — A Lower-Barrier Alternative

For foreign entrepreneurs who want to test a food concept in Japan before committing to the full investment of a restaurant, ghost kitchens (also called cloud kitchens or dark kitchens) are an increasingly viable and low-cost entry point.

A ghost restaurant takes orders from customers via an app or other means, and you or your employees prepare and deliver the food in the ghost kitchen. You could use Uber Eats or other delivery platforms.

Key features of the ghost kitchen model in Japan:

• No need to secure a customer-facing dining space — you rent time or space in a shared commercial kitchen that already has all required equipment and permits

• Lower upfront capital — typically ¥1.5–4 million total to get started versus ¥8–30 million for a full restaurant

• You still need a Restaurant Business Permit and a designated Food Sanitation Manager — these requirements apply even to delivery-only operations

• Revenue comes entirely from delivery platforms (Uber Eats, Demae-can, Menu) rather than walk-in customers

Ghost kitchens are particularly well-suited to foreign cuisines with strong delivery demand in Japan — South and Southeast Asian cuisines, Middle Eastern food, authentic Mexican, and international fusion concepts that are underrepresented in the delivery market. Japan's delivery culture in urban areas has grown rapidly and continues to expand.

The business model limitation is that delivery platforms charge commission rates of typically 25–35% of the order value, which significantly compresses margins compared to a dine-in restaurant. Building a direct ordering channel (your own app or website) over time is important for maintaining profitability as the business grows.

Step 10: Ongoing Compliance After Opening

Opening day is not the end of your regulatory obligations — it is the beginning of an ongoing compliance framework.

Health inspections: Local Hoken-Jo conduct periodic unannounced inspections of licensed food businesses. Maintain your kitchen to the same standard as your initial inspection at all times. A failed inspection can result in your Restaurant Business Permit being suspended or revoked.

Food safety records: Japan's Food Sanitation Act requires licensed food businesses to maintain records of temperature monitoring, cleaning schedules, and supplier information. Your Food Sanitation Manager is responsible for these records. They must be available for inspection on demand.

Business Manager Visa renewal: Your visa must be renewed before expiry — typically every one to three years. Renewal now requires demonstrating that your business remains genuinely active: that revenue is being generated, taxes are being paid, your mandatory employee is still employed and properly enrolled in social insurance, and you maintain the minimum capital threshold. Prepare your renewal documentation (tax returns, financial statements, employee records) throughout the year rather than scrambling at renewal time.

Corporate tax obligations: Japanese corporations pay corporate income tax on profits. Your tax accountant (税理士, zeirishi) will prepare annual tax returns. As a business owner, you are also required to file personal income tax (所得税) on any salary you draw from the business. Monthly consumption tax (消費税, 10%) collected from customers must be remitted to the tax authority quarterly or annually depending on your revenue level.

Business manager visa activity compliance: Under the October 2025 guidelines, extended absence from Japan without documented justification — overseas travel for legitimate business purposes is acceptable with proper documentation; absence that suggests you are no longer actually running the business is not — can jeopardize renewal. Keep records of your Japan business activities throughout the year.

The Japan Restaurant Market: What Foreign Concepts Succeed

Understanding what has worked for other foreign restaurant owners in Japan provides useful strategic direction.

Authentic ethnic cuisine with genuine cultural backstory. Japan's dining public has a well-developed palate for international food, but they distinguish quickly between authentic and inauthentic concepts. Foreign-owned restaurants that bring a genuine cuisine with cultural credibility — a Nepalese owner running a Nepalese restaurant, a French chef with Lyonnais training, a Sichuan chef from Chengdu — consistently outperform generic "international" concepts that feel assembled rather than lived.

High-quality ingredients and consistent execution. Japan's customers are among the most discerning in the world about ingredient quality and cooking consistency. Sourcing premium local Japanese ingredients (seasonal vegetables, locally caught seafood, Japanese-bred meat) and incorporating them into your concept signals respect for Japan's food culture and produces dishes that resonate with Japanese diners.

Clear, focused menus. Japan's restaurant culture rewards focus. A restaurant with 8–12 excellent dishes consistently outperforms one with 40 mediocre ones. New foreign restaurant owners who try to offer everything often end up executing nothing particularly well.

Lunch service economics. In Japan's major cities, lunch service at accessible price points (¥900–¥1,500 for a set meal) drives consistent weekday revenue and builds customer familiarity. Many successful foreign-owned restaurants fill their seats comfortably at lunch well before they establish a dinner crowd. Do not overlook the lunch opportunity in your business plan.

Digital presence and reservation systems. Japanese diners increasingly use Tabelog, Google Maps, and Instagram to discover and evaluate new restaurants. Building your Tabelog presence (Japan's dominant restaurant review platform), maintaining active social media, and enabling online reservations through platforms like TableCheck or Retty are not optional marketing activities — they are table stakes for a new restaurant in 2026.

Frequently Asked Questions

Can I be both the owner and the chef of my restaurant? Under a Business Manager Visa, you are permitted to manage and operate the business — but not to perform manual operational roles such as cooking as a regular activity. If cooking is central to your concept, the most common solution is to hire staff with appropriate work authorization for kitchen roles and position yourself clearly as the owner and manager. Discuss your specific situation with an immigration specialist before assuming either way.

Do I need to speak Japanese to open a restaurant? Not personally — but the October 2025 rules now require that either you or one of your qualifying full-time employees demonstrates JLPT N2 Japanese proficiency. All licensing documents, health center communications, and compliance paperwork are in Japanese. Even if you personally manage in English, having Japanese-proficient staff and professional advisors (a gyōsei shoshi, accountant, and bilingual real estate agent) is essential.

Can a foreigner open a restaurant without incorporating a company? If you already have a visa status that permits business activity without restriction — such as permanent residency, a spouse visa, or a long-term resident visa — you can operate as a sole proprietor (個人事業主) without incorporating. Sole proprietorship is simpler and cheaper to set up. The main trade-off is unlimited personal liability for business debts and that it may be harder to access certain financing products or sign commercial leases as an individual versus a corporation.

How long does the whole process take? From the decision to open to actually serving your first customer, realistic timelines are six to twelve months for a well-prepared entrepreneur. Visa processing, company incorporation, lease negotiation, fit-out, and license acquisition all run in sequence and in parallel but each has minimum processing times. Trying to compress this below five months significantly increases the risk of errors, missed steps, and stressed decision-making.

What is the most common reason foreign restaurant businesses fail in Japan? Undercapitalization — specifically, running out of working capital before the restaurant builds its customer base — is the most common cause. The second is a location choice driven by rent affordability rather than customer accessibility. The third is a menu that is too broad or a concept that does not have clear differentiation in an intensely competitive market. All three are avoidable with careful planning.

Can I hire foreign staff from my home country? Workers from your home country need appropriate Japanese work visas to work in your restaurant. The Specified Skilled Worker (SSW) visa for food service and hospitality is the most relevant pathway for hiring overseas workers in restaurant operational roles. This process involves skills assessments and Japanese language testing and takes several months. Budget for this timeline if hiring from abroad is part of your staffing plan.

Complete Checklist: Opening a Restaurant in Japan as a Foreigner

Opening a restaurant in Japan as a foreigner in 2026 is harder than it was before October 2025 — the Business Manager Visa requirements have raised the bar significantly, and the capital threshold alone will filter out underprepared entrants. That is not necessarily a bad thing for those who are genuinely ready. The Startup Visa provides a legitimate two-year preparation runway for those who are not yet at the ¥30 million capital threshold. The licensing framework is manageable with the right professional support. The market — tourism-boosted, quality-hungry, and genuinely open to foreign cuisine when it is authentic and well-executed — is real.

The foreign entrepreneurs who thrive in Japan's restaurant industry are not those who arrived with the biggest budgets. They are the ones who took the time to understand how Japan works before they opened their doors.