Benihana of Tokyo

Study Case #1:

Benihana of Tokyo

From a small restaurant launched in 1964, Benihana of Tokyo has developed into one of the most successful and not easily replicable model of themed restaurants. The success story was not a result of pure chance, but has been attributed to several reasons prior and during the operation of the business. The restaurateur spent three years making a systematic analysis of the US restaurant market before launching his first restaurant. This permitted him to discover many facts about customer’s behavior and preferences, and also key components that would make the restaurant one of a kind.

By using the Hibachi table where customers are able to see the chef making food right in front of them, Benihana has created a new dining experience for its clients. This is considered as a strategy of defense, by turning a problem (the shortage of skilled labor and space limitation) into a competitive advantage and one of the main success factors (only one skilled - continuously trained from Japan to USA, chef is needed,). Hibachi style hasn’t only kept labor costs low, but also created a constant interaction with the customers and boosted the attentive service. Reducing the Menu has helped cut food costs and reduced wastage, while serving fresh ingredients minimized storage costs. In another side, the interior design and the vibe of the restaurant have made the entire experience feel authentic and unique for the customers unlike most other restaurants.

The strategic design and the irrelevant space management maximized the usage of each square foot. Building a smaller kitchen and reducing the employees’ space helped create more room for the tables. And because the rent in the selected sites is usually high, space management has served to allow more sales to cover the rental costs. Adopting an advertising approach based on creativity is considered to be another key factor of success.

This series of strengths combined together contribute to...