Benihana Restaurant

This paper provides a summary of our analysis of the data obtained for 60 Crusty Dough Pizza Company restaurants. We compared 16 pizza store characteristics to monthly profit in order to determine the best indicators of success. The results of this analysis may be used to determine the store services and attributes that have the most bearing on profitably.

The first challenge was to determine whether or not batching dining room customer was beneficial. Batching means that the parties must reach a number of eight before they are seated. Two scenarios from the simulation show that batching is a better strategy that helped to increase profit. Utilization of the restaurant capacity is largest while batching. We could place 8 people at single table rather than placing group of 5 at one and 3 at another. The number of customers that can be served at one time highly influences the profit. According to the simulation it is more beneficial to use batching as average profit is $83.64 compared to average profit of -$282.29 when not batched. By using batching benihana restaurants are able to eliminate bottleneck that occurs in the waiting area/bar. By doing so they are able to see more customers in their restaurants which can be seen in the graphs to the right. They lose fewer customers and more diners are served.

The main purpose of this research study is to come up with a strong analysis on the performance level the restaurant. The following objectives have been brought forward with regard to this purpose.

See the frame used to analyze the case in Exhibit 1, the forecast in Exhibit 2, a breakdown of costs calculations in Exhibit 3, a breakdown of “Equipment & Fixture” costs and time allocation of all fixed costs in Exhibit 4. ASSUMPTIONS MADE (refer to the framework shown in exhibit 1 to identify each element: Price, Quantity, Fixed costs, Variable costs): General Assumptions: I assumed the cafè to stay opened 50 weeks, 350 days per year. Price: All data available from the case. No assumptions

To analyze this case, the analyst conducted liquidity, solvency and profitability ratios for Cafés Monte Bianco along with sales and income projections for operating the business under both private label and premium brands. The analyst has found that the firm utilizes high leverage to achieve ROE. Further, it is the opinion of the analyst that the firm should abandon private label brands and market its own premium brand; thereby leveraging its industry reputation as a fine purveyor of coffees.

Blackshop is a popular casual restaurant in the area of Cambridge. It is a well run business in quite a competitive market. However, in a competitive market, proprietors of a business must do what is necessary in order to remain competitive and “maximise the number of guests” (Cerny). Blackshop must decide whether or not the Open Table system will allow them to gain a competitive advantage, and if so, what sort of operational strategy needs to be implemented for it to be successful. Issues that need to be addressed are whether Open Table systems such as the new reservation system and the table management system will, in fact, leave Blackshop with a competitive advantage.

Some of the key reasons for the dismal profits are primarily due to lack of control, and inexperience from both Julie and Mary, the co-owners and managers of Café Bijoux. The reasoning behind this claim is that a business that is not seen profitable is usually not. In addition, a real restaurant sign is not up and visible. A sign is a major gateway to success in a busy congested market which sees more than eleven businesses surrounding a one km radius. However, Julie and Mary have been awaiting the funds to put up a sign, which has seen negative results due to lack of

* According to a research paper (in restaurant.org), American families eat out about 4 times a week. However, considering that our target market comprises of mostly middle and lower income families, I’ve assumed that they eat out only about 2 times a week on an average. This means that, about 16000 families [(80%*10,000)*2] eat out in a week in that area in Ohio, Florida.

The cost factor is one of the major concerns for Benihana’s growth. Each new unit costs $300,000. In order to reduce the startup cost, Benihana must find revisit its operating model and re-evaluate what is the most important to the customers. Looking back at exhibit 4, majority of respondents valued quality and taste of the food, service and preparation of food. These are the qualities that truly separate Benihana from other restaurants. Changing Benihana’s staffing model, including training, and the use of materials and labor from Japan, will most certainly minimize new unit cost.

The average turn from the time customers receive their food to the time they exit the restaurant, is 32 minutes. Additionally, it appears that even the experienced staff has difficulties in serving the customers as the demand exceeds labor utilized creating queues on the weekends of up to 25 minutes.

One of the key operational ingredients to make them successful is their hours of operations. The restaurant is only open from 11a to 2pm and from 5pm to 10pm. This could by far be one of the best strategies for them as it allows them to focus on the lunch and dinner seekers in the neighborhood. These hours of operations make it very easy to find part time employees helping keep payroll and benefits at 15% compared to 26.9% for the average limited menu restaurant. Being a buffet style restaurant and priding themselves on the freshness of their food, the owners have managed to run operations that allow them to reduce waste to mainly what the customers don’t finish eating. This also allows them to keep their

Julia Robertson is a senior at Tech, and she's investigating different ways to finance her final year at school. She is considering leasing a food booth outside the Tech stadium at home football games. Tech sells out every home game, and Julia knows, from attending the games herself, that everyone eats a lot of food. She has to pay $1,000 per game for a booth, and the booths are not very large. Vendors can sell either food or drinks on Tech property, but not both. Only the Tech athletic department concession stands can sell both inside the stadium. She thinks slices of cheese pizza, hot dogs, and barbecue sandwiches are the most popular food items among fans and so these are the items she would sell.

rising (Raab et al., 2009; Annaraud et al., 2008). Pavesic (1985) has initiated research in pricing and cost accounting for restaurants, introducing the concept of profit factor

Cause: never owned restaurant before, budget, must factor in: time of preparation, time of labor, amount of dishes sold, different profit by type of dinner

One of the most important parts of this financial plan is that rates be increased on weekends. In the information, it also stated that most customers visited on the weekends. If the prices were increased over the weekends, even if not by much, the hotel could make more revenues.