# Benihana Restaurant

Topics: Profit Pages: 3 (869 words) Published: February 20, 2012
CHALLENGE 1

How many additional customers can Benihana service with batching?

First of all, it was obvious from the first glance that batching strategy was the right one, as it was profitable. On the contrary, the non-batching strategy it was not profitable and there was a loss of \$ 201.58. This is due to the fact that batching allows the restaurant to use fewer chefs which lowers the fixed costs maximizing the profit. We can also notice that in the cases of batching versus the cases of non batching there was an increase in the revenue from the dining room whereas there was also a decline of the revenue from the bar. This shows that the dinner room is the source of profit and our goal must be to maximize this part of the business. In the batching scenarios the maximum number of customers served was 112. On the other hand, in the non-batching scenarios, the maximum number of customers served was 83. So, the additional customers that Benihana can serve with batching is (112-83=) 29. In the night-run when we have the maximum profit, there is also the maximum average utilization of the dining room, which is equal to 67.49%. in the same way, the night-run with the higher loss, there was the minimum average utilization of the dining room which was equal to 40.03%.

What is the impact of batching during peak and non-peak periods?

The peak hours are between 7:30 and 9:30. During this two (2) hours there is always a period in which the dining room operates in full capacity (112 customers) and the bar is also near capacity, which means near fifty five (55). Batching helps reaching capacity in dining room during the peak hours. On the other hand, there is the disadvantage of losing customers during the non-peak periods, in which the time needed in order to complete batches is more than the waiting time that customers are willing to spend.

CHALLENGE 2

What is the optimum size of the bar for maximum profitability?

The maximum profitability that can be...

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