Benihana Case Study

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A restaurant makes most of its money from food and beverages. When a person visits a restaurant, he ensures that the restaurant has good food and beverages, has a nice ambience and is hygienic. Also, the customer keeps in mind, the price of meal at the restaurant. As it can be seen from the Benihana case, to maximize their revenues, they reduced their costs by minimizing the kitchen area. Usually, a restaurant uses 30% of its area for operating the kitchen, whereas Hiroaki Aoki, increased the floor area significantly by reducing the preparation areas, dry and refrigerated storage and office space to 22%. Another technique of increasing the revenue is surveying the area before opening a restaurant, understanding the culture, habits, likes and dislikes of the residents. This helps in reducing the wastage of the food and thus increases the overall revenue. At Benihana, native Japanese chefs were specially trained and brought to America. Also, the rent of the place, basic materials required for the preparation of the food, advertisements plus the operating costs accounted for the total cost. Benihana’s asset variables were their chefs from their own cuisine and the hibachi tables. At Benihana’s, the food served was fresh and the people were attended personally by the chefs. Also, the exotic ambience of the place and the showmanship of the chefs added to the winning versus the qualifying criteria.

A benihana’s is expected to make more money than any other typical restaurant because of the winning factors mentioned above. Benihana’s basic operations differed from a typical restaurant. The selection of site for opening a Benihana was such that more people could be catered i.e. it was pre-dominantly located in business district. The chefs were brought from Japan where they were trained for 3 years which followed a training of 3-6 months in English language and mannerism. At the restaurant, each chef was assigned to a particular table, who by his showmanship...
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