What Is Benihana Concept Essay Example
What Is Benihana Concept Essay Example

What Is Benihana Concept Essay Example

Available Only on StudyHippo
  • Pages: 3 (639 words)
  • Published: March 22, 2017
  • Type: Tests
View Entire Sample
Text preview

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. ) 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.

) 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

View entire sample
Join StudyHippo to see entire essay

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 operations was handled such as eliminating the conventional kitchen with Hibachi table arrangement which had brought the down to 10 to 12% of the total gross sales and also helped in increasing the production areas due allowing more space meaning more sitting capacity, more revenue. - Keeping the menu limited resulting in reduction of waste thus bringing the food cost to 30% to 35% of food sales. At the early stage identifying the importance of bigger bar/lounge holdings led to increase in sales and the margin was higher as compared to food. Customer: At Benihana the food, preparation and atmosphere was given the prime importance which are the three key ingredients to Customer satisfaction in the Restaurant business. This is clearly depicted from the survey result in Exhibit 4 61% of the people visit Benihana for Pleasure and nearly 70% of the people voted Food, service and Atmosphere as excellent and people from all income level visited Benihana.Employee: Success of any organization depends on how happy are its employee and this was exactly what we observed in Benihana.

Employees were treated as part of family and along with top priority given to the well being of its employees and that was one of the reasons why annual turnover of people was really

low. There are certain areas where Benihana need to work in order to grow at a same rate in future - Implementation of Corporate Goverence model. Look out for resources within US or other parts of the world rather than constraining to Japan. - Look at the options of getting interiors purchased from US, rather than importing them from Japan. - Have a strategy in place on how to go about making JV’s in other part of the world.

Question 3: Prepare an operating statement for the Chicago restaurant based on the operating information in the case. Assumption: Food cost of 30% includes both food and beverage cost and the break up is 70/30 [pic][pic]

Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New