Key Unique Features of Benihana

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Explain the unique features of Benihana and discuss how these impact the financial performance of the company. Your answer should be brief (one page or less) and be submitted as an ATTACHMENT Key unique features of Benihana 1. The Optimal Space Utilization: The restaurants have about 8% more than average productive dinning space. 2. Location Advantage: The restaurants are located in heavily populated areas so as to attract clientele for lunch and dinner. 3. Historical Authenticity: The restaurants are built with materials imported from Japan along with the help of a Japanese crew. All decorations, foods, and chefs are Japanese. 4. Hibachi Table Arrangement: It not only keeps labor cost low at a level of 10-12% but also minimizes flow time resulted to higher turnover rate 5. Waste Management and Storage: The restaurants cut food costs down substantially by wisely providing the most three wanted American entrees and thereby reducing on storage costs and this also helps in avoiding waste. Initial Strategy of excellent financial performance 1. Operates more efficient compared to the other typical US restaurants: Operation Cost | US Restaurant | Benihana | Efficient performance | Labor Cost | 30-35% | 10-12% | Low labor cost was driven by eliminating the need for a conventional kitchen | Food Cost | 38-48% | 30-35% | Simple menu resulted no waste. Cut food costs to between 30-35% | Beverage Cost | 30-35% | 20% | Managed to get an average of 20% of the beverage sales | 2. Having substantial repeat business (65.7%) and high number of recommendations and word of mouth publicity (67%). 3. Increase the proportion of the productive area: There is an effective reduction in space for kitchen and the same space can be used as the productive dining area. This also reduces the labour costs low. 4. Limit the main menu to 3

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