This custom was started in Edo-period. A well-known inventor Hiraga Gennai wanted to help poor sales eel restaurant, so he made an advertising poster for the shop. The ad said "Doyou no hi, Unagi no hi" or "the midsummer is Eel Day ". After the campaign, the sales of the restaurant had been increasing. Many other eel restaurants took the idea for their shops and succeeded. Since then, that campaign became a Japanese custom.
Unfortunately, the number of eel has been decreasing, so the price of eel has been soaring. Since Japanese people eat 70% of eel in the world, we have to think about eel consuming.
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