Characteristics and Issues
| Benihana of Tokyo
| Broadway Pizza
| Conflicts & Lessons
| Competitive Advantage
| * Low cost (competitor) * Labor cost * Strategic Marketing * Low waste * Lower overhead
| * Use of technology * Family oriented
| Rocky Aoki was able to keep labor, food, beverage and facility costs lower than traditional restaurant design using hibachi grills, a new service innovation. This service innovation however, did require higher marketing costs, as the American public had never experienced this dining model. Broadway Pizza viewed their competitive advantage as their ability to combine family oriented robot entertainment and dining under one roof. This turned out not be a competitive advantage as the breakeven costs was too high.
| Order Qualifier/ Winners
| * Food prepared in front of customer * Community dinning * Cooking was entertainment
| * Quality food * Child focused atmosphere * Interactive * Multiple dining locations
| The order winners for Benihana are their community dining style, chefs cooking in front of and providing entertainment to patrons. This showed that enjoy eating and being entertained at the same time. This same idea of being entertained while eating defined Broadway Pizza’s order winners as their family focused robotic entertainment drew in patrons.
| Competitive Priorities
| * Innovative * Cost * Time * Quality (chefs)
| * Innovative * Flexibility * Quality * Cost
| The competitive priorities for Benihana were to increase efficiency in the traditional restaurant model by using innovation to cut costs i.e. Hibachi and Umbrella drinks and using highly trained skilled labor to ensure customer service. Broadway Pizza also placed competitive priority on innovation by adding robotic entertainment to a family restaurant, however the lesson to be learned is that Broadway pizza innovated for the sake of innovation there was no benefit to the shareholders. Benihana innovated as a cost saving mechanism and increased profits.
| Operations Strategy
| * Limited menu * Skilled labor & management * System and service exec. * Max utilization * Food prep
| * Bring families together * Family menu * Inexpensive entertainment * Variety of entertainment
| Benihana operations strategy decreased costs and allowed for maximization of resources while Broadway pizza strategy was to entertain people with a lack of focus on cost metrics.
| * To provide ding and quality entertainment while reducing costs
| * Combining robotic entertainment and food service under one roof
| The main difference between Benihana and Broadway pizza is the focus on cost. Both wanted to provide a combined dining and entertainment service
| * Urban * Metropolitan
| * Areas with high and dense family populations
| Benihana’s locations were well thought out and planned in large cities with densely populated areas. Building Benihana’s in large cities allowed the staff to assimilate with American’s- and therefore helped with the appeal and recruiting of Japanese staff. Broadway Pizza did not have a plan for choosing its’ locations, other than driving around and looking for vacated space in family neighborhoods. This led to a much smaller market segment per store.
| Service Scape
| * Authentic Japanese experience * Novelty Dining * Relaxed atmosphere (umbrella drink)
| * Parents enjoy seeing their children happy * Multiple robotic programs to ensure a new experience each visit
| Benihana restaurants were decorated by Japanese carpenters using authentic Japanese décor and materials. This provided guests with the sites and ambiance of being in Japan. Additionally, this hibachi communal-style dining was the first of its kind in the US which provided for a novelty restaurant for families, singles, and group gatherings. Offering a limited menu but a variety of drink options leaves the atmosphere to be...
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