Benihana of Tokyo
Case study: Benihana of Tokyo
Benihana of Tokyo has been very successful for the last 40 years since 1964. From a small restaurant, it has developed into a chain of themed restaurants. The success of Benihana has been attributed to the superb total quality management (TQM) process especially in maintaining the overall exotic ambience and the high quality food provided. All these strengths contribute to providing an unforgettable dining experience to its consumers and are reflected in their ability to retain consumers which is shown in exhibit 4 such that 65.7% of their customers are return customers.
Benihana is able to minimize cost effectively without affecting the quality of food and service provided. From Exhibit 1, total costs of sales are kept to 35-45% of total sales. Their attempt to reduce operating costs is also reflected through a reasonable net profit margin of 0.5-9% of sales. Benihana made use of floor space efficiently to decrease labor costs and rent. The elimination of the conventional kitchen with the hibachi arrangement allows the company to keep labor costs low and at the same time, give huge amount of attentive service. This boosted its dining experience, through constant interaction with consumers. Benihana also focuses on setting up their businesses in areas with high traffic, especially in the business district areas. Rent is usually higher in these areas. By using floor space more efficiently, Benihana is able to serve more consumers during peak period and allow for more sales to cover the higher rental costs.
The concept that Benihana adopts is that consumers are served at their tables with freshly prepared food by the chef. By only providing 3 menus to consumers, this reduces food costs and wastage. Benihana’s lower food costs are also reduced through the use of fresh ingredients, where storage is minimized. The main process flow of a Benihana restaurant is different from a typical restaurant. In Benihana, the orders for the soup,
Benihana of Tokyo has been very successful for the last 40 years since 1964. From a small restaurant, it has developed into a chain of themed restaurants. The success of Benihana has been attributed to the superb total quality management (TQM) process especially in maintaining the overall exotic ambience and the high quality food provided. All these strengths contribute to providing an unforgettable dining experience to its consumers and are reflected in their ability to retain consumers which is shown in exhibit 4 such that 65.7% of their customers are return customers.
Benihana is able to minimize cost effectively without affecting the quality of food and service provided. From Exhibit 1, total costs of sales are kept to 35-45% of total sales. Their attempt to reduce operating costs is also reflected through a reasonable net profit margin of 0.5-9% of sales. Benihana made use of floor space efficiently to decrease labor costs and rent. The elimination of the conventional kitchen with the hibachi arrangement allows the company to keep labor costs low and at the same time, give huge amount of attentive service. This boosted its dining experience, through constant interaction with consumers. Benihana also focuses on setting up their businesses in areas with high traffic, especially in the business district areas. Rent is usually higher in these areas. By using floor space more efficiently, Benihana is able to serve more consumers during peak period and allow for more sales to cover the higher rental costs.
The concept that Benihana adopts is that consumers are served at their tables with freshly prepared food by the chef. By only providing 3 menus to consumers, this reduces food costs and wastage. Benihana’s lower food costs are also reduced through the use of fresh ingredients, where storage is minimized. The main process flow of a Benihana restaurant is different from a typical restaurant. In Benihana, the orders for the soup,