Japanese restaurants face labor fears after foreign worker visa freeze

Restaurant chains in Japan are scrambling to adjust hiring plans after immigration authorities halted the issuance of key work visas for foreign employees in the food service sector, Kyodo News reported Saturday.

The suspension affects applications for the Type I Specified Skilled Worker visa, a program widely used by restaurants and fast-food operators to recruit overseas staff amid worsening labor shortages.

Preliminary government data cited by Kyodo said the number of foreign workers in the food service industry under the visa program had climbed to 46,000 by February, nearing the official cap of 50,000 set through fiscal 2028.

The number has triggered concerns among restaurant operators that foreign recruits may abandon plans to work in Japan and instead seek opportunities elsewhere.

Major restaurant companies, including Skylark Holdings and Mos Food Services, said the restrictions could disrupt staffing plans, expansion projects and store operations.

Industry groups have also raised concerns about increased competition among employers for workers already holding valid visas, while cautioning that Japan's image as a destination for foreign workers could suffer.

Japan has increasingly relied on overseas labor in recent years as the country faces a shrinking workforce and an aging population, despite maintaining traditionally strict immigration policies.