Ladeeda

BENIHANI

1.WHAT IS BENIHANA SELLING? A unique dining experience!

2. WHAT ARE THE KEYS TO BENIHANA'S SUCCESS? labour costs: 10-12% of gross sales (food and beverage) -> Eliminated need for conventional kitchen with the hibachi table arrangement. Gives unusual amount of attentive service and still keeps labour cost low

food costs: 30-35% of food sales -> Reduced menu to 3 simple Middle American entrees: steak, chicken, and shrimp. Virtually no wasted food.

rent costs: 5-7% of sales for 5,000-6000 square feet of floor space.

chefs: chefs were considered by Benihana to be a key to its success. Turnover was very low because of intangible compensation: job security and total commitment of Benihani to the well-being of its employees (paternal attitude Benihana took toward all its employees)

advertising: substantial investment in creative advertising and public relations. Invests 8-10% if gross sales on reaching public! (a lot more than average restaurant). Very contemporary, offbeat and eye-catching advertising.

Chicago branch

food: 30% of gross sales, labour: 10%, advertising: 10%, management: 4%, rent: 5%

22% of total space of unit is back of the house (preparation areas, dry and refrigerated storage, employee dressing rooms, and office space) -> because the kitchens are basically incorporated into productive dining space, less space needed for back of the house

3. EXAMINE BENIHANA'S OPERATING SYSTEM:

A) DRAW DIAGRAM OF PRODUCTION PROCESS

B) WHERE ARE THE FLOWS? WHERE IN THE PROCESS ARE INVENTORIES HELD?

As seen in diagram. Inventories are held behind line of visibility, in the kitchens, or in the bars.

C) WHAT ROLE DOES THE BAR PLAY IN THE PROCESS? BASED ON THE FLOWS THROUGH THE SYSTEM, HOW LARGE SHOULD THE BAR BE? WHY?

The bar is an alternate or earlier/later step in the process. Should be fairly large.

D) WHAT DESSERT WOULD YOU OFFER AT BENIHANA? WHY?

Something that can also be served/made in front of the customer on...