Questions:
1. What is the Benihana concept?
Benihana’s concept is based on the following factors:
- Efficiency: Cost control
- Achieve high levels of customer service with less skilled labor
- Limited menu reduces food and waste costs
- Fast table turnover due to limited menu and cooking time, food and info transfer inefficiencies reduced by eliminating servers
- Large bars increase beverage (high-margin) % of sales
- 78% floor space is dining or bar (vs. 70% elsewhere)
- Simple management structure (4 execs + controller in corporate), good incentive plan, high level of control
- High quality and customer service: Cooking at the table is entertaining, attentive and reassures Americans that exotic foods are OK. Chefs are highly trained showmen. Only USDA prime beef used.
- Advertising & PR: Spend unprecedented 8% of sales on programs with “impact philosophy” – visible, visual, creative, offbeat ads to attract first-time customers, to be retained by the quality of their experience.
- Authentic Japanese atmosphere: Chefs, décor, etc. all from Japan.
Benihana produces food at the point of of service (from earlier prep in back), eliminating the need for skilled cooks and servers (only kyacktail waitresses).
- Affords an engaging, interactive dining experience; reduces waiting for servers
- Service of food by chef enables Benihana to provide uncommonly attentive service at low cost – element of instant gratification
- Limited menu reduces food costs and waste, but limits customers’ options
2. Is Benihana a successful operation? How successful?
Benihana is successful operation because of the close relationships developed over the years with our customers, investors and employees. The Benihana concept began as a family business on the streets of New York in 1964, and has grown to every corner of the world by adopting and living by a strong code of conduct and ethics.
3. Prepare an operating statement for the Chicago...