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Benihana first emerged as a restaurant in the United States in 1964 as a project of found Rocky Aoki. While the restaurant originally debuted as a small forty-seat unit in New York City, it has since expanded throughout the United States. The paper tells about cost structure, process flow and recommendations
In establishing Benihana’s unique market share the restaurant actually prepares the food in front of the customer’s eyes. This allows for a novel dining experience, and greatly contributes to the restaurant’s effective cost structure. As the restaurant found increased success, questions regarding whether to franchise the restaurant out emerged. While there were initial attempts to enact franchises, the company ultimately determined that franchising would not be successful, as the largely Japanese staff didn’t translate well into the American climate.
The organization’s process flow occurs as customers are brought into the restaurant and then seated in the bar area. This element functions both to increase drink revenue and to give the customer’s an activity to occupy themselves during their wait period. When a table opens, the customers are then seated. After customers are seated the staff takes a drink order and gives them an option for soup, salad, or general appetizer. Upon returning their order is taken. The chef then arrives and prepares the order in front of the table. This is the essential aspect of the dining experience both for the restaurant and the customer. While one might believe that preparing the food in front of the table would result in an increased time, this process actually reduces labor costs while granting the customers insight into the process of food creation as well as a side-show environment.
There are a number of considerations that can be made in developing the overriding strategic approach. In this context of understanding, the simulation permits users to explore a number of elements of profitability. The simulation also functions to inform the user of various aspects of operations management and allow them to better formulate strategic approaches. ...
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