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Case Study
Benihana
1) What are the differences between Benihana’s production process and that of a typical restaurant? How do these differences affect a customer’s dining experience?
Incorporated the hibachi table concept into his operations (from concern about rising costs and increased competition)
Eliminated the need for a conventional kitchen (keeping labor cost to 10-12% of gross sales and also increase the floor area proportion devoted to productive dining space)
Less required back space compared to a normal restaurant (22% vs 30%)
Only offering a few simple middle American entrees of steak, chicken, filet mignon, and shrimp (leading to virtually no waste and can cut food costs to between 30-35% of food sales)

2) Examine the design of Benihana’s operation system in detail. What major design choices enable the meal to be served in less than one hour during a peak period?

Having multiple chefs that divides and serves separate group of customers
Sending customers in batches at once, which helps serve more customers
Chef cuts the steak into bite size morsels
No wait staff in between – order goes directly to the chef and the chef directly serves the customer

3) Compare the operating statistics for a typical restaurant with those of Benihana for major categories such as food cost, beverage cost, payroll, and rent. Why, for example, does Benihana have a food cost of 30-35%, whereas a typical restaurant has a food cost of 38-48%?
Eliminated the need for a conventional kitchen, keeping labor cost to 10-12% of gross sales
Only a select number of available entrees: steak, chicken, filet mignon, and shrimp that helps cut food costs to between 30-35% of food sales (less food storage and less waste) Chef serves meal directly cutting out the wait staff
Discuss common tools to analyze process flows, such as capacity, utilization, and identifying bottlenecks

Kristen’s Cookies
4) How long does it take to produce 1 dz. Cookies with a single over? 2 dz.

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