10 Best Business Models to Start in Shinjuku, Tokyo [With Calculator]

Shinjuku is famous for “Omoide Yokocho” and “Golden Gai”. The business model here is to have a tiny counter (only 5 to 8 seats). The focus is not on complex food, but on “Otsumami” (quick snacks) and lots of alcohol. The “Cover Charge” (Otoshi) is standard and covers fixed costs.

The stigma of singing alone is gone. The “Hitokara” (Karaoke for one) market is exploding. Instead of large rooms, you build 20 small booths (like recording studios) on a commercial floor. High-fidelity sound equipment is mandatory.

With the boom of Western tourists, the demand for meat/fish-free food is massive and supply in Shinjuku is nearly zero. Traditional Ramen uses pork or fish broth. A creamy vegan ramen attracts lines of foreigners willing to pay 30% more than the local price.

Rent a small or “dead” space (building corridor) and fill it with Gachapon machines (capsule toys). Tourists love spending loose change here. Requires no permanent staff, just restocking.

“Otaku” culture has left Akihabara and invaded Shinjuku (especially Kabukicho with the Toyoko Tower). Themed cafes (Vampire, Ninja, Maid) charge high prices for simple drinks because they sell interaction and photos (Chekki) with the staff.

Japan has a massive stock of used luxury bags (Louis Vuitton, Chanel) in “Mint Condition”. With the weak Yen, tourists come to Shinjuku to sweep the stores. The model is to buy at local auctions and resell with margin to tourists.

Finding an empty “Coin Locker” at Shinjuku station is impossible. A simple space near the station that stores bags for ¥800/day and serves coffee is a gold mine. Use platforms like “Ecbo Cloak” to attract digital customers.

Not the old capsules from the 80s, but modern “Design Capsules” (like 9h Nine Hours). Shinjuku has two guaranteed audiences: tourists wanting the experience and workers who missed the “Last Train” and need to sleep cheaply.

Young Japanese men are obsessed with appearance. Salons specialized only in “Eyebrow Design” and facial hair removal for men are booming in Shinjuku. Requires little space (reclining chairs) and high added value.

Bars where you drink standing up. The real estate advantage is huge: you fit double the people in the same sqm and the customer tends to drink faster and leave, increasing turnover. Works very well near subway exits for the post-work “quick drink”.