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    Benihana of Tokyo

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    Debashish Bagg
    Group 8 submitted a case on Benihana of Tokyo, a successful Japanese restaurant chain founded in 1964. Key aspects of Benihana's success included targeting high traffic areas for locations, employing highly trained chefs, keeping costs low through limited menus and inventory, and creating a unique dining experience focused on visual cooking performances by chefs. Benihana also focused on operational efficiencies like minimizing flow time, waste, and space usage to maximize profits. Through these strategies, Benihana achieved industry-leading operating ratios like food costs 20-30% lower than competitors.

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    Benihana of Tokyo

    Uploaded by

    Debashish Bagg
    602 views20 pages
    Group 8 submitted a case on Benihana of Tokyo, a successful Japanese restaurant chain founded in 1964. Key aspects of Benihana's success included targeting high traffic areas for locations, employing highly trained chefs, keeping costs low through limited menus and inventory, and creating a unique dining experience focused on visual cooking performances by chefs. Benihana also focused on operational efficiencies like minimizing flow time, waste, and space usage to maximize profits. Through these strategies, Benihana achieved industry-leading operating ratios like food costs 20-30% lower than competitors.

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    Group 8 submitted a case on Benihana of Tokyo, a successful Japanese restaurant chain founded in 1964. Key aspects of Benihana's success included targeting high traffic areas for locations, employing highly trained chefs, keeping costs low through limited menus and inventory, and creating a unique dining experience focused on visual cooking performances by chefs. Benihana also focused on operational efficiencies like minimizing flow time, waste, and space usage to maximize profits. Through these strategies, Benihana achieved industry-leading operating ratios like food costs 20-30% lower than competitors.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    602 views20 pages

    Benihana of Tokyo

    Uploaded by

    Debashish Bagg
    Group 8 submitted a case on Benihana of Tokyo, a successful Japanese restaurant chain founded in 1964. Key aspects of Benihana's success included targeting high traffic areas for locations, employing highly trained chefs, keeping costs low through limited menus and inventory, and creating a unique dining experience focused on visual cooking performances by chefs. Benihana also focused on operational efficiencies like minimizing flow time, waste, and space usage to maximize profits. Through these strategies, Benihana achieved industry-leading operating ratios like food costs 20-30% lower than competitors.

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    Case submission by Group 8

    Introduction of Benihana of Tokyo Case overview Design choices for operational efficiencies Ingredients of Benihana success Operating ratios Process design=> Benihana success

    Founded in 1964, Hiroaki Aoki (Rocky) Started franchising in 1969 15 units till 1972

    Target high traffic area Rent normally 5%-7% of sales for 5000-6000 square feet of floor space Primarily located in business district, though easy access to residential area

    Highly trained chefs


     3 yr formal apprenticeship  3-6 months course in English language and

    American manners  Training chefs used continuously


    Paternal attitude towards all its employees Unique combination of Japanese paternalism in an American setting

    A simple management structure


     a manager,  assistant manager  2-3 front men

    Reporting structure Individual quota figures allotted based upon overall sales goals and budget
     Bonus plan for performance over quota  Accounting staff and controller to monitor costs  managers reported to the manager of operations  Manager operations reported to VP of operations

    Benihanas success different and original in our advertising approach Outstanding visuals in ads
     Theater of the stomach wait for the chef  A Benihana chef is an artist, not a butcher

    The advertising policy is different and it makes them seem different to people
     Come in and give a nice Japanese boy a break

    Rocky Aoki

    Self operated restaurants vs. franchisees


     Franchisees owner were not experienced in hotel business

    One of the biggest constraints is authenticate Japanese staff Cost factor


    but only investors  Cultural difference in owner and native Japanese staff  Control on franchisee was difficult

    Is it worth to import construction items from Japan?


     Survey says that people did not come for look and feel but

     Fixed cost vs. demand turn up

    food

    Three principle areas of growth The US, overseas and Japan Diversification plans Make people happy What is Benihana really selling? Is it food, atmosphere, hospitality or what? Appeal to the younger generation

    Limited Menu
     Keeps cost of food and wastages to bare minimum

    Minimize Flow time


     Keeps turnover rate high thus high utilization and throughput

    Minimize Waste Minimize Inventory Optimal site selection


     High traffic area  Keep an optimal mix to meet the business district and residential flow

    Minimize Space Highly trained, skilled and motivated workforce

    Making Japanese cooking tangible


     People feel good about the cooking process and not

    food only

    Personal Training
     Highly trained personal

    Reducing Risk
     Market research and setup at highly populated area

    Controlling quality
     Making the customer look what they are being

    cooked

    Availability Convenience Personalization Price Quality Speed Visibility of service to the customer Sense of pride in sheaf to work

    Cost Head Raw Material Cost of COGS Food Cost (% of food sales) Beverages Cost (% of beverages sales) Wages and Salaries Labor Cost out of Operating Expense (including other heads of employee benefits) Management Salaries Rent out of Operating Expense Space occupancy Promotional and Advertisement Cost Construction cost

    Industrial std. 38 48% 25 30% 30 42% 2 6% 4.5 9% 30% 0.75 2% Lower

    Benihana 30% 20% 10 % 4% 5 7% 22% 10% Higher

    Customers view point


     Most people came there recommended  Repeat business 65.7%  Attracted to food and atmosphere  Expectations seemed to have meet  Frequency was less ( but aligned to the vision of

    founder)

    Statistics
     Gross profit 1.3 million per year

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