Benihana Answers: Questions and Answers Essay Example

eight customers per table, which utilizes capacity more fully as empty seating is minimized. Bar also becomes a profit center through drink sales. ) Batching places multiple parties at same grill reduces conversation. Chef performances reduce conversation further. Chef bowing at the end of the meal signals “Time to go. ”

What does Benihana do to control variability in various aspects of its operations?

Variability occurs in the form of arrival times, as customers don’t all arrive at the top of the hour. There is also variability in the form of party sizes, because not all parties are in perfect batch size (eight).

The bar reduces variability in arrival times and party size, as patrons are invited to wait in the bar until a batch of eight can be seated together. There is also variability in dining time. Ideally, the restaurant wants to move customers through the restaurant quickly (within an hour of being seated). Customers who stay longer decrease the utilization of capacity. This variability in dining time is reduced by the factors described in response to question 3 above. The limited menu reduces ordering and preparation time, the chef follows a certain procedure in the cooking presentation which reduces dining time, etc.

These processes that work to increase capacity by improving throughput rates also work to reduce the variability in dining time. This works to improve utilization of capacity, and reduce variability.

What is the “best strategy” you have come up with?

The following suggestions represent the best strategy:  Chefs should be incentivized to reduce dining time during the busiest hour (7p to 8p) to 45 minutes. The advertising budget will be doubled, and will focus on promoting happy

hour.

This results in morethan-doubling the revenue from the bar. Opening the restaurant at 5:00 pm adds to this increase in revenue. Increasing the number of seats in the bar to 71 improves revenue and holding capacity, while minimizing the number of customers who leave without eating. Past this level of bar capacity, the nightly profit increases slightly, but the number of customers who leave without eating rises dramatically. The decision to limit the bar capacity to 71 seats takes into account long-term benefits over short-term profits.

Reducing the batch size during the final dining period allows for more efficient throughput; with fewer people coming into the restaurant, seating batches of four means patrons are not required to wait until eight people can be grouped into a batch before eating. • Compared to the current state, this strategy increases Nightly Profits by 261% and Total Revenues by 45%. Nightly Profit Best Case $440.