Benihana Simulation Analysis

1338 Words Mar 20th, 2015 6 Pages
Benihana Simulation Analysis

Harvard Business Publishing has created a computer simulation to replicate the operations management decisions facing Benihana. Benihana is a teppanyaki style restaurant franchise that focuses on bringing a theatrical dinning experience to its patrons. The layout of the restaurant consists of two seating areas: the bar and the dining area. The goal of this simulation is to maximize utilization, throughput time and the nightly profit using different batching, bar sizing, hours of operation, as well as advertising strategies. The first five challenges are individual challenges where only one to three factors can be changed to gain affect nightly profit. The sixth and final challenge is to design the best
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I found that before peak implementing dining time very close to peak hours helped maximize profit. The opposite was true for after peak hours. An explanation for this could be that it is better to build brand loyalty when the restaurant is less busy and provide a better experience. This could lead to less customers leaving without being seated. The fourth challenge is to analyze how marketing efforts affect operations and profitability. There are three factors that can be influenced on this particular challenge. The three factors include: Advertising Budget, Advertising Campaign, and Restaurant Opening Time. It would seem that this particular challenge is used to smooth out demand across all runs of the simulation. This challenge was hard in the sense that you had to run multiple simulations to find the best resulting increase in demand. As this increase in demand would result in increased profits as mentioned before. The problem however, is that sometimes the expenditure to boost demand did not result in a justified increase. I found that by advertising a significant amount (2.1x advertising budget) and introducing a happy hour campaign I was able to increase nightly profits. This process allowed us to draw more customers to the bar and increase bar revenue by offering lower cost drinks. By better developing the complimentary service of having a bar and offering price incentives for drinks, I was attracting more
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