Benihana Restaurant Issues - Essay Example

While there were initial attempts to enact franchises, the company ultimately determined that franchising would not be successful, as the largest Japanese staff didn’t translate well into the American climate. 

As noted above, Benihana implements a unique cost structure. In these regards, they can retain a relatedly low-cost structure, as they do not have to implement a conventional kitchen. In these regards, Aoki as cited in Sasser (2004, p. 3) notes: I can give an unusual amount of attentive service and still keep labor cost to 10%-12% of gross sales (food and beverage) depending on whether a unit is at full volume. In addition, I was able to significantly increase the proportion of floor area devoted to productive dining space. Only about 22% of the total space of a unit is back of the house, including preparation areas, dry and refrigerated storage, employee dressing rooms, and office space. Normally a restaurant requires 30% of its total space as back of the house. 

Here it’s seen that through implementing the preparation of the food in front of the customer’s table strategy, the restaurant is an able than unique dining experience, attentive service, and low labor costs. Another important consideration is the nature of food storage. While typical restaurants lose overhead because of large menus, the minimal menu options also function to contribute to the organization’s cost structure. In terms of advertising and marketing, Benihana spends approximately 10% of advertising expenditures. One area of cost emphasis is on the training of the chefs as their position in front of the customers makes them a highly important element of the operation. 

The organization’s process flow occurs as customers are brought into the restaurant and then seated in the bar area. This element functions both to increase drink revenue and to give the customers an activity to occupy themselves during their wait period. When a table opens, the customers are then seated. After customers are seated the staff takes a drink order and gives them an option for soup, salad, or general appetizer. Upon returning their order is taken. The chef then arrives and prepares the order in front of the table. This is an essential aspect of the dining experience both for the restaurant and the customer. While one might believe that preparing the food in front of the table would result in an increased time, this process labor costs while granting the customers insight into the process of food creation as well as a side-show environment. 

There are a lot of considerations that can be made in developing the overriding strategic approach. In this context of understanding, the simulation permits users to explore a number several of profitability (Sasser, 2008). The simulation also functions to inform the user of various aspects of operations management and allow them to better formulate strategic approaches. In this context of understanding, I experimented with several potential batching as a means of developing the most effective and efficient process approach. In terms of batching one of the most effective methods is to distinguish between peak and non-peak hours. In attempting several reservations, one of the most effective assortments is to consider the peak hours of 6 pm to 8 pm. Within this period it’s understood that the most effective assortment is ‘four shares a table.’ It’s necessary to distinguish between the peak hours of 6 pm to 8 pm and the off-hours of 8 pm until close. From 8 pm until the close period, it’s understood that the most effective batching arrangement is tables of ‘4 to 8’. These arrangements act to achieve the highest profit levels. In addition to this aspect, another prominent consideration is advertising and marketing. In these regards, the most efficient use of advertising dollars is during Happy Hour.