Benihana Case Study

Recommendation Benihana restaurants have been amassing great success for many years, however there are several recommendations that could create even more success and profitability for them. Benihana should consider expanding into high-end hotel chains while maintain management control. They should terminate the use of franchises as well as the idea of a fast food chain. Benihana also should avoid focusing on targeting the younger generation. In order to help improve the size of their customer base as well as their loyalty, a rewards program should be implemented. Also, Benihana should consider how profitable it is to use all authentic décor or whether those resources could be better used elsewhere. A trial restaurant in Europe, particularly the London area should also be opened. With these recommendations, Benihana can generate more loyal customers and greater profits.

Company Background The Benihana chain started in Japan by Yunosuke Aoki in 1935 in Japan. Yunosuke was very practical and resourceful and was always considering rising costs and increased competition. In 1958 he implemented the use of hibachi tables, which would become a pillar of the Benihana restaurant experience. Yunosuke handed down the Benihana restaurant chain to his son Rocky Aoki. Rocky Aoki in 1959 had gone to the United States on a tour with his university wrestling team at age 20 and realized that America offered him vastly more opportunities than Japan. He decided to enroll in the School of Restaurant Management and then spent three years analyzing the U.S. restaurant market. Four years later in 1963, after combining the money he had saved and money he borrowed he opened his first Benihana on the West Side and put all his knowledge to use. This first unit paid for itself in only six months. To deal with the high customer volume he opened another unit in 1966 three blocks over on the East Side. After a suggestion from Barron Hilton in 1967, Rocky opened his third Benihana