Benihana
Benihana
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What is the Benihana concept?
Benihana restaurants are traditional Japanese hibachi steakhouses, which feature the Japanese cooking method known as teppanyaki. There are key attributes that separate Benihana from other restaurants. One is true Japanese authenticity. Every item that is used in construction of a restaurant is 100% authentic and imported from Japan. In addition, each restaurant is built by Japanese carpenters. All chefs at Benihana are native Japanese with three year formal apprenticeship. The second major differentiating factor is the way food is prepared. Unlike traditional restaurants, where the food is cooked in the kitchen and brought out to customers, at Benihana the food is cooked in front of the customer by Japanese chefs. Benihana’s operating concept is based on maximizing efficiency and reducing operating cost. As Benihana does not have a traditional kitchen, with all cooking done on the hibachi table, a great amount of attentive service can be given to customers. At the same time, the labor cost is kept at 10-12% of gross sales. Benihana’s menu includes three simple choices: steak, chicken and shrimp. There is virtually no waste and the cost of food is cut between 30% and 35% of food sales. Due to limited menu and fast cooking time, the average turnover at each teppanyaki station is one hour (relatively fast table turnover). Turnover is further helped by eliminating waiters carrying food from the kitchen to the customer. As sales from bar represent high percentage of total sales, Benihana’s cocktail lounge areas are larger than in a typical restaurant. Based on Exhibit 2, cocktail lounge area represents significant percentage of total restaurant area. Based on Exhibit 3, Benihana has a very simple
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1. -------------------------------------------------
What is the Benihana concept?
Benihana restaurants are traditional Japanese hibachi steakhouses, which feature the Japanese cooking method known as teppanyaki. There are key attributes that separate Benihana from other restaurants. One is true Japanese authenticity. Every item that is used in construction of a restaurant is 100% authentic and imported from Japan. In addition, each restaurant is built by Japanese carpenters. All chefs at Benihana are native Japanese with three year formal apprenticeship. The second major differentiating factor is the way food is prepared. Unlike traditional restaurants, where the food is cooked in the kitchen and brought out to customers, at Benihana the food is cooked in front of the customer by Japanese chefs. Benihana’s operating concept is based on maximizing efficiency and reducing operating cost. As Benihana does not have a traditional kitchen, with all cooking done on the hibachi table, a great amount of attentive service can be given to customers. At the same time, the labor cost is kept at 10-12% of gross sales. Benihana’s menu includes three simple choices: steak, chicken and shrimp. There is virtually no waste and the cost of food is cut between 30% and 35% of food sales. Due to limited menu and fast cooking time, the average turnover at each teppanyaki station is one hour (relatively fast table turnover). Turnover is further helped by eliminating waiters carrying food from the kitchen to the customer. As sales from bar represent high percentage of total sales, Benihana’s cocktail lounge areas are larger than in a typical restaurant. Based on Exhibit 2, cocktail lounge area represents significant percentage of total restaurant area. Based on Exhibit 3, Benihana has a very simple
References: Sasser, W. Earl, Jr.; Klug, John R. Benihana of Tokyo. Published 11/01/1972, Revised 07/20/2004. Harvard Business School Publishing http://finance.yahoo.com/q/is?s=BNHN+Income+Statement&annual www.benihana.com -------------------------------------------- [ 1 ]. www.benihana.com [ 2 ]. Benihana of Tokyo, page 5 [ 3 ]. Benihana of Tokyo, page 6 [ 4 ]. Benihana of Tokyo, page 8 [ 5 ]. Benihana of Tokyo. Exhibit 2 Floor Plan, page 14 [ 6 ]. http://finance.yahoo.com/q/is?s=BNHN+Income+Statement&annual