Question 1: What is the Benihana concept?
Benihana concept is based on Job Shop primarily because of following reasons: 1) Job shop is a process where typically ore or few of a kind are made at one time, similar to what Benihana does. If we look at Teppanyaki table it serves steak, filet mignon, chicken and shrimps at one time basis customer preference /selection 2) In Job shop we require a skilled craftsmen who can customize the product as per customer requirement, similar to what the Chef at Benihana does while preparing and serving boss basis the customer taste/ preference. 3) In Job shop the order starts once the customer places an order and in Benihana also the Chef starts preparing food once the customer has placed the order. 4) Machines/ equipments are arranged according to their functions in job shop similar to Benihana where separate areas are there for bar, lounge and Food. 5) In job shop machines/equipment can do large variety of jobs similar to Teppanyaki table that can serve different items. 6) As in Job shop much depends on the availability of the craftsmen and working condition of machine, similarly in Benihana much depends on the Chef and working condition of Teppanyaki table (especially the Grill)
Question 2: Is Benihana a successful operation? How successful? In today’s world a successful operation that ensures ICE is happy. ICE stands for Investor, Customer and Employees.
After reading the case and analyzing all the practices listed below I can vouch that all the three have been very effectively taken care off. From the investor stand point following are the key highlights: The venture that started with an investment of ~ $ 30,000 in 1964, from a humble 40-seat unit opened in midtown Manhattan, Benihana had grown to a chain of 15 units across the country that grossed over $ 12 million per year by 1972. Further if we refer to the Exhibit 1 the profit of 55 to 65% was incredible. - The key to this was the way the...
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