Benihana Operations Case

Module B: International operations management

Case: Benihana of Tokyo
Case Preparation:
1. 2. 3. 4.

5.

What are the differences between the Benihana production process and that of a typical restaurant? Examine the production system in detail. (Try and draw a simple process diagram). What are the major design choices which generate operating efficiencies? What is the process flow at Benihana? How many customers can the restaurant process and what is this as cash flow? What role does the cocktail lounge serve on a busy night? Comment on volume, variety, variability and visibility and how these impact potential profit.

Differences between Benihana and others
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Authenticity Preparation by performer (chef) Collect customers into groups in the bar Menu
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Constrained Very American – no surprises

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Higher volume means lower variety

Comparison of figures
Benihana Labor Food Beverage Rent Promotion Construction 10-12% 30-35% 20% 5-7% 8-10% Somewhat More (because of Japanese authenticity) Typical 30-35% 38-48% 25-30% 5-9% 0.75-2.0%
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Benihana: Process Analysis

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4

Process Flow in the Restaurant
People Arrive Food Storage Food Preparation

Bar

Diners Seated

Orders Taken

Soup Served

Chef Arrives

Diners Eat

Pay Check

Exit Food Cooked Table Cleaned

Same flow as above, another table of 8

People Depart

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Process: How many customers?
Dining Area - 112 seats
It takes 60 minutes for one customer to eat dinner, and there are 112 seats in the dining area. Therefore 112 people eat every 60 minutes (throughput). On average a dinner cycle is completed every 60 minutes/112 people = 32 seconds per person (cycle time). We know that dinners are processed in batches of 8, so on the average a table of 8 finishes every 256 seconds