Case Discussion Questions Benihana of Tokyo 1. What are the key elements in Benihana's successful concepc? To what market segments does it have appeal 2. Rocky stated that before he founded Benihana of Tokyo, "1 spent three years making a systematic analysis of the US. restaurant market. Does the design of the Benihana of Tokyo service-delivery system reflect three years of careful analysis? 3. Draw a process flow chart or service blueprint for the Benihana service delivery system. 4. What role does the bar play in the production process 5. What is communal dining (see Exhibit 5) and what affect does it have on Benihana operations? 6. What type of locations does Benihana choose and why? 7. Compare the operating statistics for a typical restaurant (see Exhibit I) with those of Benihana for the following major categories: food cost, beverage cost, labor cost, and rent How do Benihana's numbers come about? Why are they often less than a typical service restaurant 8. How has communal scating reduced food, labor, and rent expenses? 9. What are the major design choices that enable the meal to be served in less than one hour during peak period? 10. Rocky claims his first unit paid for itself in six months. Are the financial statements that attractive? Determine profit before taxes (as a percent of sales) for the Chicago unit. (The income statement for the Chicago unit is given below.) 11. Describe the elements of Benihana's operating system that are also characteristic of many Japanese manufacturing firms. Income Statement (Chicago Benihana) 2,300,000 Sales Food revenue (70% of sales) Food cost (30% of food revenue) Gross margin Beverage revenue (30% of sales) Beverage cost (20% beverage sales) Gross margin Total Gross Margin 1.610,000 483.000 1.127,000 690.000 138.000 552.000 1.679.000 Operating Expenses Labor (10% of sales) Rent (5% of sales) Advertising (10% of sales) Management (6% of sales) Miscellaneous (10% of sales) 230,000 115.000 230 000 138.60 230,00 943,000 736,000 Profit before tax Case Discussion Questions Benihana of Tokyo 1. What are the key elements in Benihana's successful concepc? To what market segments does it have appeal 2. Rocky stated that before he founded Benihana of Tokyo, "1 spent three years making a systematic analysis of the US. restaurant market. Does the design of the Benihana of Tokyo service-delivery system reflect three years of careful analysis? 3. Draw a process flow chart or service blueprint for the Benihana service delivery system. 4. What role does the bar play in the production process 5. What is communal dining (see Exhibit 5) and what affect does it have on Benihana operations? 6. What type of locations does Benihana choose and why? 7. Compare the operating statistics for a typical restaurant (see Exhibit I) with those of Benihana for the following major categories: food cost, beverage cost, labor cost, and rent How do Benihana's numbers come about? Why are they often less than a typical service restaurant 8. How has communal scating reduced food, labor, and rent expenses? 9. What are the major design choices that enable the meal to be served in less than one hour during peak period? 10. Rocky claims his first unit paid for itself in six months. Are the financial statements that attractive? Determine profit before taxes (as a percent of sales) for the Chicago unit. (The income statement for the Chicago unit is given below.) 11. Describe the elements of Benihana's operating system that are also characteristic of many Japanese manufacturing firms. Income Statement (Chicago Benihana) 2,300,000 Sales Food revenue (70% of sales) Food cost (30% of food revenue) Gross margin Beverage revenue (30% of sales) Beverage cost (20% beverage sales) Gross margin Total Gross Margin 1.610,000 483.000 1.127,000 690.000 138.000 552.000 1.679.000 Operating Expenses Labor (10% of sales) Rent (5% of sales) Advertising (10% of sales) Management (6% of sales) Miscellaneous (10% of sales) 230,000 115.000 230 000 138.60 230,00 943,000 736,000 Profit before tax