Hello ezencia,
Thanks for your question! The New Year celebration in Japan, O-shogatsu, as it is called is surely the most wonderful celebration of the year, but it can be difficult for foreign travelers as many restaurants and shops will be closed. If you are not on a tight budget or you have friends or family, I think that you can have nice time in Kyoto at O-shogatsu. You might consider coming at another time of year thought too.
We touched on this issue previously, please see the link below for more. Here is a summary:
Visiting Japan at New Year’s, Oshogatsu (お正月)
Generally I would NOT recommend visiting Japan during the New Year’s celebration for several reasons.
– New Year’s in Japan is family time, like Christmas in Western countries.
– Few shops, stores, restaurants will be open from January 1-4.
– Hotel and ryokan will be difficult to book.
Sightseeing
The shrines and temples will all be open — and will be packed.
Japanese visit a shrine for hatsumode, the first visit to a shrine in the new year. Here is a KyotoFoodie article with some photos of hatsumode: http://kyotofoodie.com/hatsumode-the-first-visit-to-a-shrine-of-the-new-year/
Japanese visit a temple at midnight to ring in the new year with the temple bell being rung 108 times. This is also a very wonderful experience. Trains often run all night on new year’s eve and new year’s day.
Museums are generally open from January 3rd or 4th.
Accommodations
If you can get a reservation at a ryokan, one the includes meals, you should have no trouble as the staff ought to take good care of you. The problems is that it is a Japanese custom for families to stay at a ryokan over the new year so it it difficult to get a reservation.
Food and Restaurants
Few restaurants will be open. Very expensive, proper Kyoto-style kaiseki restaurants are obliged to be open (many are not now).
Some cheaper restaurants near sightseeing attractions such as temples and shrines will be open. Most moderately priced restaurants, like the ones near your hotel or ryokan will likely be closed.
If you stay at a ryokan, dinner and breakfast are usually included. The over-priced, mediocre restaurants in the international hotels ought to be open.
From January 2nd, the department stores are open and you can get very good food at a moderate price to take out at the food courts.
Convenience stores will be open as usual, 24 hours, through the holiday and the food offered isn’t too horrible.
Transportation
Trains, buses, taxis etc are all available as usual during the holiday.
Vegetarian/Vegan and Visiting Japan at New Year’s: https://openkyoto.com/kyoto-support/topic/vegetarian-vegan-and-visiting-japan-at-new-years