Professional Documents
Culture Documents
Benihana Group3
Benihana Group3
Group 3
Swagata Khargharia 19021141120
Lakshmi Lavanya Pagallu 19021141059
PVL Sravanthi 19021141075
Akhil Dosapati 19021141010
1|Page
Table of contents
1. Challenge ............................................................................. 3
2. Benihana .............................................................................. 3
2.1 Evolution ..................................................................... 3
2.2 Timeline ....................................................................... 3
2.3 Key Takeaways ........................................................... 3
2.4 Pillars of being the best ............................................... 4
2.5 Units……….. ...................................................... ……...4
2.5.1 Primarily .................................................................. 4
2.5.2 Later ........................................................................ 4
2.6 Process Flow ........................................................... …..4
2.7 SERVQUAL Model................................................... ..…5
2.8 Service Triangle……………………………………………..6
2.9 Gaps…………………………………………………..………7
2.9.1 Service performance gap ......................... ………….7
2.9.2 Knowledge gap ....................................................... 7
2.9.3 Communication gap……………………………………7
2.9.4 Service Design Gap……………………………………7
2.10 Restaurant structure………………………………………..8
3. Management ......................................................................... 8
3.1 Objective ...................................................................... 8
3.2 How does it differ ........................................................... 8
3.3 Training ........................................................................ 8
3.4 Management Structure ................................................. 9
3.5 Management Strategy……………………………………..9
4. Advertising Policy .................................................................. 9
4.1 Publicity ......................................................................... 10
5. Constraints for future expansion ............................................. 10
6. Future diversification plans ..................................................... 10
7. Recommendations...................................................................11
2|Page
1.Challenge
The challenge for Benihana was on how to expand their restaurant chain
in the United States and overseas, but at the same time retain their
authenticity of Benihana.
2.Benihana
2.1 Evolution
Rocky, the son of Yunosuke Aoki came to the United States and
enrolled in School of Restaurant Management at City College where, he
did an in-depth analysis of the U.S Restaurant market - consumer
interest w.r.t Japanese food. He found out that not many people were
familiar with it as to Chinese. He saw this as a best opportunity to
change the minds of the Americans w.r.t Japanese food by introducing
Hibachi culture.
2.2 Timeline
1958 Due to the rising costs and increased competition, the hibachi
table concept was introduced.
1964 First unit in United States is opened in West Side
1966 Second unit is opened on the East Side, called Benihana East
1967 Third unit is opened in Chicago
1969 Fourth and Fifth unit was opened in San Francisco and Las
Vegas respectively
1970 Franchises were granted in Puerto Rico, Harrisburg, Fort
Lauderdale, Portland, Seattle, Beverly hills and Boston.
3|Page
2.4 Pillars of being the best
1. High Quality food
2. Food’s freshness
3. The cooking Process (live cooking)
2.5 Units
2.5.1 Primarily
1st Unit on the Westside: It was an immediate success and was
able to pay for itself in six months
2nd Unit on the Eastside: Built in 1966, basically to cater to the
overflow of the Benihana West which quickly developed into a
separate clientele and prospered.
3rd Unit in Chicago: An instant success that grossed
approximately $1.3 million dollars per year and consequently
proved to the company's largest money-maker.
4th Unit in San Francisco: Set up in 1969
5th Unit in Las Vegas: Joint venture started in 1969
2.5.2 Later
15 working units that had different operational hours varied according to
local requirements. All were open for lunch and dinner though not
necessarily every day.
4|Page
The whole process takes about 45 minutes, excluding the time a
customer spends in the bar.
5|Page
2.8 Service Triangle
COMPANY
INTERNAL EXTERNAL
MARKETING MARKETING
SERVICE
TRIANGLE
EMPLOYEE CUSTOMER
INTERACTIVE MARKETING
Internal Marketing:
1. All the employees were well paid and given good incentives.
2. They had job security and hence, the employee turnover was very
low.
3. They are committed to the well- being of all their employees.
4. Paternal attitude- cultural bonding with the management.
External Marketing:
1. The customers were communicated about introduction to a unique
dining experience which the Americans had never experienced
before.
2. They were dedicated in providing a fun atmosphere to all the diners
and it was expressed in their advertisements.
3. The advertisements had outstanding visuals and highlighted their
Authentic Japanese legacy right from their cooking to the restaurant
décor which was dedicatedly maintained across all their branches.
4. They chose high traffic areas in order to have more people coming
both for lunch and dinner in order to spike their sales rapidly.
5. Persuasive advertisements, appearing in city entertainment guides,
working with convention and visiting bureaus to reach to the tourist-
visitors and all- embracing public relations were maintained.
6|Page
Interactive Marketing:
1. Considerable amount of market research was done in order to
identify what the customers really want.
2. A friendly environment and presence of the chef and a waitress
throughout the time they spend dining.
3. Customer feedbacks and preferences could be addressed instantly
which improves customer intimacy and adds a positive environment.
2.9 Gaps
2.9.1 Service performance gap: A lot of customer’s feedback
mentioned how dirty the overall appearance of the restaurant was, lack
of proper maintenance.
3. Management
3.1 Objective
Establish a control system by introducing sales goals and budgets
Project the sales goals first on an annual basis, then breaking it
out by months and weeks and consequently by day.
3.3 Training
Benihana had highly trained chefs as the chefs were considered as one
of the keys for their success. All the chefs were native Japanese, young
and single.
Before coming to the U.S -
They all completed a three-year formal apprenticeship and got
certified.
They were given a three-to-six months course in the English
Language, American manners as well as Benihana form of
cooking.
3.5 Strategy
Primary Strategy:
Maintain Historical Authenticity
Reducing the main menu to 3-4 items in order to minimize food
waste and cut food costs
Increasing the proportion of productive area
Operational Strategy:
Selection of high traffic areas in business districts to set up their
8|Page
branches
Highly trained chefs brought in from Japan
Providing good incentives to the employees as well as intangible
benefits in terms of taking care of their well-being, job security etc.
that reduced employee turnover
Low management expenses
Marketing Strategy:
Substantial investment, 8-10% of gross sales into advertising and
marketing
Promotion of the entire Benihana experience
Use of outstanding visuals and offbeat themes as they considered it
to be more of a visual business.
4. Advertising Policy
Vital factor that contributed to the success of Benihana was substantial
investment into creative advertising and public relations. They always
tried to keep an original and different approach to their advertisements.
Keeping in mind an impact philosophy, they would often go for full
page ads in national publications rather than putting out small ads.
They emphasized on utilizing outstanding visuals in their ads to create
an impact. Their advertisements included visuals of their hibachi
cooking process.
4.1Publicity
Their publicity took forms of media stories and television
demonstrations. It involved department store demonstrations, catering to
celebrities, hosting youth groups, sending matchboxes to conventions
and chopsticks to ladies’ clubs.
C) Cost
Each new Benihana unit costed a minimum of $300,000 which
restricts their setup plan to major cities like Atlanta, Dallas, St. Louis etc
in the future and later use these units to expand to the suburbs.
D) Historical authenticity
Importing every construction item from Japan in order to make Benihana
100% authentic increased the costs to a considerable extent. Also, using
Japanese carpenters and paying union carpenters to sit and watch
accounts to additional costs.
7.RECOMMENDATIONS
They can use more rigorous training for the staff i.e the waiters
and the cooks in order to make the tasks more time-efficient
Lounge wait time Calculation
Average time spent in Benihana = 1 -1.5 hrs
Time spent on food consumption = 45 mins
Non - busy nights = 60 mins - 45 mins = 15 mins
Busy nights = 90min - 45mins = 45 mins
As per above calculations its waiting time is still low as the
customers have to still wait for long before they can enjoy their
meal. There is a space for improvement.
They can use locally available building materials and hire local
10 | P a g
e
carpenters and have the Japanese carpenters watch over their
work in order to perfect their job
Explore potential areas for business. For e.g. the suburb areas
Introduce attractive schemes for women and older people to
appeal to that segment.
Add more variety to the menu which might be more
appealing to the younger generation which they are
planning to target in the future
11 | P a g
e