Khanh Thuy Mai Nguyen (Maka) _ 1610590901

Restaurant Analysis
I. Company: Business background:
The story of Benihana had its roots in Japan
when Yunosuke Aoki, a samurai descendant,
and a popular Japanese entertainer together
with his wife Katsu, opened a small coffee shop
in Tokyo. Red safflower found in the
neighborhood streets gave the Aoki’s the
inspiration for the restaurant’s name; ‘Benihana
– or ‘red flower’ in Japanese. The eldest son,
Hiroaki later earned a place on the Japanese
Olympic wrestling team which brought him to
America. By the time Hiroaki arrived in the US
in 1960, he had already begun to form the idea
and started the restaurant with $10,000 earned
from driving an ice cream truck in Harlem.
Benihana was founded in 1964 on West 56th
Street in New York City by 25-year-old Hiroaki
Aoki. The first restaurant, Benihana of Tokyo,
was named for the red safflower that was the name for the coffee shop owned by his parents in
Tokyo. His concept serves the unfulfilled needs of the market especially the middle-income
businessmen by providing exotic surroundings, the authentic Japanese ambiance, as well as
offering a new experience by having chefs cooked in front of customers. The idea quickly
gained popularity; resulting in high profits and rapid expansion.
II. Company: Target customers:
The major concerns that were raised by both internal and external parties regarding Benihana's
business were the expansion strategy, understanding its core business, and the sustainability of
the business. To come up with solutions, one needs to understand the core business by first
understanding the market. The main target market of Benihana was middle-income
businessmen.
III. Company: 3 Competitors:

Competitor Reason

1 P.F. Chang's China The chain specializes in American Chinese cuisine, plus other Asian dishes.
Bistro Special items on their menu include their Chang's Lettuce Wraps, Chang's
Spicy Chicken, Peking Duck, and various types of sushi. Wine, specialty
drinks, Asian beers, sake, cappuccino, and espresso are available outside
standard beverage offerings.

2 The Melting Pot The Melting Pot is a chain of franchised fondue restaurants in the United
Restaurants States and Canada. The Melting Pot menu contains various cheese
fondues, wines, salads, entrees of meat and seafood served with dipping
sauces and oil or broth to be cooked in, and chocolate fondues.

3 McCormick & McCormick & Schmick's dates its deep-seated roots back to 1974 and has
Schmick's Seafood a long reputation of being a company that serves great seafood, steaks,
Restaurants oysters, and beverages with outstanding service, in superior locations.
 Khanh Thuy Mai Nguyen (Maka) _ 1610590901

IV. Company: Food and beverages menu and pricing:

Benihana’s strategy was also to provide a simple menu with three to four Middle American
entrees: steak, fillet mignon, chicken, and shrimp that goes together with a complementary
option of vegetables. This service concept brought forth the competitive advantage to Benihana
restaurant. Having chefs outside cooking; allows the restaurant to save labor costs and offer
more attentive services. The menu limitation also lowers the costs. The space was fully utilized
to maximize the profits. Benihana provided limited menus, which resulted in a reduction of food
storage and wastage costs. This service concept brought forth the competitive advantage to
Benihana restaurant. Having chefs outside cooking; allows the restaurant to save labor costs
and offer more attentive services. The menu limitation also lowers the costs. The space was
fully utilized to maximize the profits. In order to have a clearer picture of the difference
between Benihana and a typical restaurant, the percentages of each item were compared. The
food and beverages sales percentages of Benihana are similar to that of a typical restaurant
which was around 70% for food and 30% for beverages. Nevertheless, the major difference lies
in the food and beverage costs which were approximately 50% in Benihana whereas in the
typical restaurant would be equivalent to 73-88% or about 23-38% higher. The total expenses
percentages of Benihana come up to 29% which is composed of labor, advertising,
management, and rent, meanwhile the operating expenses percentages of a typical restaurant
total to 42.25-57%.
V. 3 strategies to increase Revenues with reasons for each strategy:

Strategy Why

Expand menu Benihana should consider frequent menu changes while maintaining a limited
menu so that customers have more choices.

Sell existing Expanding Benihana Restaurant to different regions of the US through joint
products/services in venture and wholly-owned to further extend the brand everywhere.
a new geographic
market segment

The sustainability of Time changes, trends change, and people change, thus businesses should
the products and come up with innovative plans as a pioneer or expand the line of products for
services. the business growth. If Benihana is considered to be fashionable due to the
trend, then they will need to develop a concept for service according to help
Benihana to become sustainable.

VI. 3 strategies to reduce Costs/Expenses with reasons for each strategy:

Strategy Why

Focus on quality When the quality of the food is good, the customers are satisfied, it
will help increase sales through referrals and repeat dining. Higher
quality and solid reputation allow you to charge higher prices, which
equates to higher sales and healthier margins.