An izakaya [ee-zah-ka-yah] is a type of informal Japanese pub. They are casual places for after-work drinking. They have been compared to Irish pubs, tapas bars, and early American saloons and taverns.
The word ‘izakaya’ is a compound word consisting of ‘i’ (‘to stay’) and ‘sakaya’ (‘sake shop’), indicating that izakaya originated from sake shops that allowed customers to sit on the premises to drink. Izakaya are sometimes called ‘akachōchin’ (‘red lantern’) in daily conversation, as such paper lanterns are traditionally found in front of them.
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The Daily Omnivore 